Malaysia aims to have 50 SMEs join its business improvement programme

SMEs selected for the programme will undergo capacity building and be eligible to receive financial assistance of up to RM500,000.
By: | April 29, 2021
Topics: Compensation and Benefits | Digital Transformation | Malaysia | News | Restructuring

By 2030, the Malaysian government aims to have 50 SMEs enrolled under its Strategic Industries and High-Performance SME Improvement Programme (PRESTIGE), Aerospace Manufacturing Initiative (AMI).

The programme, implemented by the Entrepreneur Development and Cooperatives Ministry (MEDAC), through SME Corporation Malaysia, has so far seen 30 SMEs enrolled since 2017. MEDAC minister Datuk Seri Wan Junaidi Tuanku Jaafar said 10 more SMEs are expected to be brought in in 2021.

“SMEs selected for the programme will undergo capacity building and be eligible to receive financial assistance of up to RM500,000 (US$0.12 billion) in matching grant for their transformation activities comprising standards and certification, new technology adaptation, and strategic marketing to penetrate the global aerospace supply chain,” the minister said, reports Bernama.

“The programme has made a positive impact, with the SMEs involved recording cumulative sales of RM69.9 million (US$1.7 million) in 2019 for an average sales growth of nearly 24%,” he said.

He noted that the aerospace industry is one of the key economic catalysts for Malaysia in its aim to be a high-income nation. 

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In 2019, the industry comprised 84 players with a revenue of RM14.4 billion (US$3.51 billion), contributing to 7% of Malaysia’s GDP, and providing jobs for 24,500 workers,  he added. 

By 2030, Malaysia aims to be South-east Asia’s hub for aerospace component manufacturing and a supplier to aerospace companies, he said.