SMEs to get RM12.5b from stimulus packages

The government has budgeted one fifth of the RM67 billion stimulus packages for SME-related programmes.

This means that some RM12.5 billion are for small and medium enterprises (SMEs). They can use the money to fund working capital, expand business and train their staff, among others, said Small and Medium Industries Development Corp (Smidec) chief executive officer Datuk Hafsah Hashim.

Besides cash, the allocation also includes incentives like tax breaks and loan guarantees.

"In 2008 alone, the government provided RM3.2 billion for 198 programmes in the development of SMEs in various sectors," Hafsah said in a keynote address at the National SME Conference in Kuala Lumpur yesterday.

In her speech, which was read by deputy Borhan Sidik, Hafsah said Smidec is helping SMEs to upgrade themselves.

For matching grant schemes, Smidec has approved 21,208 projects, involving RM587.3 million, while for soft loans, the agency has approved 1,488 applications amounting to RM864.9 million.

For the past 12 years, 859 SMEs that do business with multinationals, government-linked companies (GLCs) and large companies made cumulative sales of RM893.79 million.

She said although many SMEs think the current economic slowdown is a threat to their businesses, it actually gives opportunity for them to expand.

"Since SMEs are an important contributor to the growth of economies worldwide, I firmly believe that companies, especially SMEs, need to consider repositioning business strategies and find new markets and avenues of growth," she said.

(Source: http://www.btimes.com.my/Current_News/BTIMES/articles/14SMESME/Article/index_html)