THE local small and medium-sized enterprise (SME) sector remains a key contributor to economic growth. They account for about 35 per cent of the country’s gross domestic product. SMEs offer a significant source of domestic employment opportunities, providing jobs to many in both urban and rural areas.
Despite this, when compared to SMEs in many developed economies such as Japan, Australia and Germany, the local players have clearly not reached their full potential. This can be attributed to a number of factors such as lack of technological capabilities, market access and access to finance and human resource development.
That’s why the Government’s move to enhance several incentives for SMEs, as announced last week by International Trade and Industry Minister Tan Sri Muhyiddin Yassin, is seen as crucial to address these issues, with the main aim of making these companies more competitive and resilient.
Lack of technological capabilities among local SMEs is certainly something that warrant attention as many companies across the globe have become tech savvy and incorporated innovative technologies into their operations. These include tech investments to ensure more efficient operations at the front end, and intelligent business solutions to aid in the decision-making process and boost time to market.
So, local SMEs have to equip themselves with the best that technology can offer.
Today, the way a company processes information to enhance its market competitiveness is increasingly being shaped by advances in technology – telecommunications, interactive media and the Internet. Local SMEs cannot afford to be held back by lack of technological skills or other inadequacies for that matter. This is crucial to increase their competitiveness and also for their survival.
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