BUSINESS

MED CONFIDENT SMES CAN HIT 41 PER CENT GDP CONTRIBUTION BY 2020

25/01/2019 02:16 PM

KUALA LUMPUR, Jan 25 (Bernama) -- The Ministry of Entrepreneur Development (MED) is confident that small and medium enterprises (SMEs) can contribute 41 per cent to the country’s gross domestic product (GDP) by 2020 as envisioned in the National Entrepreneurship Framework.

Deputy Minister Datuk Dr Mohd Hatta Md Ramli said despite current global economic uncertainties, the target could be achieved by leveraging on the halal market and Islamic products, as well as through innovation and productivity-led growth.

“Yes, much more needs to be done in order to achieve the target but I believe we can achieve it. GDP contribution by SMEs need to expand at above eight per cent (this year),” he told reporters after officiating the Islamic Innovation Challenge (IIC) award ceremony held in conjunction with the Malaysia Halal Expo 2019 here today.

Mohd Hatta said to-date, SMEs contributed about 37 per cent to the GDP.

He said the halal industry and Islamic products had emerged as a new and powerful sector in both domestic and global markets, with an annual market value exceeding RM7.6 trillion.

“There are many opportunities for local entrepreneurs who can, and must, tap into global demand for growing halal products and services, as well as new innovations based on Islamic laws.

“The development of Islamic-inspired innovations is key to facilitate our local entrepreneurs in growing their small businesses into large-scale enterprises capable of accessing overseas markets," he said.

Mohd Hatta said innovative firms typically make up the top percentile of high-growth firms which contributed to 46 per cent of new jobs created in the economy.

“Hence, in order to reach high-income nation status by 2020, it is imperative that we create more innovative SMEs in the country.

“The government is committed to assisting SMEs in developing technological and high-impact innovations that cater to the Islamic market,” he added.

The IIC is an annual Halal Hi-Tech Accelerator Programme aimed at cultivating Malaysian SMEs to be at the forefront of building successful halal businesses and seizing the opportunities in the global halal market.

A total of 15 companies were presented with IIC awards out of 66 companies nominated.

-- BERNAMA


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