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SMEs should improve production, delivery

[ 22-08-2008 ]

SMALL and medium enterprises (SMEs), which represent the majority of firms in the local services sector, must continuously improve and upgrade their production and delivery to meet increased global competition and new market requirements, says International Trade and Industry Minister Tan Sri Muhyiddin Mohd Yassin.

"SMEs should enhance their skills, knowledge and research and development, upgrade their information and communication technology-based systems and strengthen their capability and capacity building," he said at the launch of the third and final session for this year's MITI Dialogue with the private sector in Kuala Lumpur yesterday.

MITI has received 11 memoranda from the various associations in the services sector, while for the first five sessions, 38 memoranda involving 217 issues from other sectors were discussed.

The services sector, which contributed 53.6 per cent to the country's gross domestic product last year with a growth rate of 9.7 per cent, is envisaged to be a catalyst in generating new sources of growth and export earnings.

Exports totalled RM23.7 billion during the first quarter of 2008, while imports was RM23.8 billion.

Muhyiddin said the private sector can also take advantage of the services liberalisation roadmap drawn up by Asean, which will see priority services sub-sectors such as healthcare, tourism, air travel and e-ASEAN being liberalised up to 70 per cent of equity levels by 2010.

"Asean is also negotiating on mutual recognition arrangements (MRAs) to facilitate freer movement of professional services within the region.

"To date, four MRAs have been signed on professional services for engineering, nursing, architectural and surveying qualifications," he said.

"Negotiations on medical practitioners, dental practitioners and accountancy services have also been concluded," he added. - By Rupa Damodaran

Source: http://www.btimes.com.my/Current_News/BTIMES/Saturday/Nation/rup0152.xml/Article/