SMEs urged to ready for economic challenges ahead

This report is extracted from The Star today (28 July 2008). Interesting reading:

Small and medium enterprises (SMEs) in the country should focus on domestic demand to help the country counter slowdown in external demand, according to Penang Chief Minister Lim Guan Eng. He said the National SME Development Council, in its SME annual report published on July 24, stated that rising fuel prices and other raw materials would be key economic trends impacting Malaysian SMEs this year.

“The onus is on SMEs to cut down costs and enhance productivity to meet demand,” he told reporters after opening the SME Conference 2008 themed “Globalisation of SMEs – The Next Battleground” at the Gurney Hotel. “SMEs should continue to develop new products and services to prepare themselves for economic challenges in the near future. They also need to move up the value chain rapidly as well as into new areas of competitive advantage by using newer and more efficient delivery channels.”

In his speech, Lim said the state government would help create a conducive climate for SMEs here who have high growth and export potential. “We believe that our CAT (Competency, Accountability and Transparency) principle is crucial in helping the growth of the SME industry here.” Admitting that SME contribution in Penang amounted to only 20% of the state’s gross regional product, he added: “SMEs should now move beyond their areas of comfort and focus on new areas of opportunities within the regional market and other emerging markets like China and India.”

This entry was posted in economy. Bookmark the permalink.