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Government pledges to help out SMEs

[ 29-12-2008 ]

PUTRAJAYA: The government has pledged to help small and medium enterprises (SMEs) weather the worsening economic climate.

Deputy Prime Minister Datuk Seri Najib Razak said the relevant ministries had been directed to submit recommendations to provide the necessary assistance.

Speaking after chairing the National Land Council meeting at the Implemention and Coordination Unit in the Prime Minister's Department yesterday, Najib said the SMEs would be assisted to face the "extraordinary" economic situation and sharp drop in demand for their products.

"We hope the relevant authorities and ministries can send in their recommendations or proposals quickly. The government is prepared to look into ways to help the SMEs," Najib said.

Prime Minister Datuk Seri Abdullah Ahmad Badawi recently said that the government would continue to closely monitor global economic developments and take steps to keep the domestic economy on an even keel.
He said the government had taken pre-emptive measures to cushion the impact by announcing a RM7 billion stimulus package alongside plans to liberalise the services sector.

SMEs contributed 32 per cent of gross domestic product, made up 56 per cent of total employment, and accounted for 19 per cent of total exports.

"Therefore, it is exceedingly clear that as we attempt to ride out the storm ahead of us, we must stand committed to the development of a robust and competitive SME sector," Abdullah had said.

He further said that banks and development institutions approved RM63.2 billion in funding to over 132,000 SME accounts last year.

Najib yesterday denied that multinationals were deserting the country due to worldwide economic uncertainties.

Source: http://www.nst.com.my/Wednesday/National/2435880/Article/index_html