Malaysia’s Experience with the Small and Medium Sized Enterprises Masterplan : Lessons Learned

Productivity-enhancing measures play a pivotal role in Malaysia’s aspirations of becoming a high-income economy. Malaysia has enjoyed an impressive growth performance over the past few decades, with growth rates of at least 7 percent per year for m...

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Main Author: World Bank Group
Format: Report
Language:English
Published: World Bank, Malaysia 2020
Subjects:
Online Access:http://documents.worldbank.org/curated/en/504361583989615623/Malaysia-s-Experience-with-the-Small-and-Medium-Sized-Enterprises-Masterplan-Lessons-Learned
http://hdl.handle.net/10986/33437
id okr-10986-33437
recordtype oai_dc
spelling okr-10986-334372021-09-16T16:31:03Z Malaysia’s Experience with the Small and Medium Sized Enterprises Masterplan : Lessons Learned World Bank Group SMALL AND MEDIUM SIZE ENTERPRISE GOVERNMENT SUPPORT INVESTMENT CLIMATE BUSINESS ENVIRONMENT SME FINANCE MASTER PLAN COMPETITION POLICY BUDGET PROCESS Productivity-enhancing measures play a pivotal role in Malaysia’s aspirations of becoming a high-income economy. Malaysia has enjoyed an impressive growth performance over the past few decades, with growth rates of at least 7 percent per year for more than 25 consecutive years. However, with the rise of other emerging economies, notably China and India, Malaysia has faced challenges in pivoting away from a ‘low-cost, high-volume’ strategy towards a ‘high-value’ one. Small and medium-sized enterprises (SMEs) are a crucial component of Malaysia’s strategy to become a high-income nation. As SMEs account for all but 1.5 percent of firms and the bulk of production and employment, they are central to Malaysia’s objective of becoming a high-income economy. SMEs form the bedrock of the private sector and innovation and can contribute to growth by supplying multinationals or accessing international markets directly. Despite their critical importance, the share of Malaysian SMEs in GDP (32 percent) and total exports (16 percent) was far lower than competitors in 2010. At the time of preparation of the Masterplan, the export share was more than 20 percent lower than that in countries such as the Philippines, Hong Kong, Taiwan and even the US, and there was also scope for greater sectoral and geographical diversification. It was recognized that specific policies to enable favorable conditions for SMEs to flourish were needed so that they can easily expand into fast-growing markets and increase the production of knowledge- and innovation-based products and services. 2020-03-16T18:53:01Z 2020-03-16T18:53:01Z 2020-02 Report http://documents.worldbank.org/curated/en/504361583989615623/Malaysia-s-Experience-with-the-Small-and-Medium-Sized-Enterprises-Masterplan-Lessons-Learned http://hdl.handle.net/10986/33437 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Malaysia Economic & Sector Work Economic & Sector Work :: PSD, Privatization and Industrial Policy East Asia and Pacific Malaysia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic SMALL AND MEDIUM SIZE ENTERPRISE
GOVERNMENT SUPPORT
INVESTMENT CLIMATE
BUSINESS ENVIRONMENT
SME FINANCE
MASTER PLAN
COMPETITION POLICY
BUDGET PROCESS
spellingShingle SMALL AND MEDIUM SIZE ENTERPRISE
GOVERNMENT SUPPORT
INVESTMENT CLIMATE
BUSINESS ENVIRONMENT
SME FINANCE
MASTER PLAN
COMPETITION POLICY
BUDGET PROCESS
World Bank Group
Malaysia’s Experience with the Small and Medium Sized Enterprises Masterplan : Lessons Learned
geographic_facet East Asia and Pacific
Malaysia
description Productivity-enhancing measures play a pivotal role in Malaysia’s aspirations of becoming a high-income economy. Malaysia has enjoyed an impressive growth performance over the past few decades, with growth rates of at least 7 percent per year for more than 25 consecutive years. However, with the rise of other emerging economies, notably China and India, Malaysia has faced challenges in pivoting away from a ‘low-cost, high-volume’ strategy towards a ‘high-value’ one. Small and medium-sized enterprises (SMEs) are a crucial component of Malaysia’s strategy to become a high-income nation. As SMEs account for all but 1.5 percent of firms and the bulk of production and employment, they are central to Malaysia’s objective of becoming a high-income economy. SMEs form the bedrock of the private sector and innovation and can contribute to growth by supplying multinationals or accessing international markets directly. Despite their critical importance, the share of Malaysian SMEs in GDP (32 percent) and total exports (16 percent) was far lower than competitors in 2010. At the time of preparation of the Masterplan, the export share was more than 20 percent lower than that in countries such as the Philippines, Hong Kong, Taiwan and even the US, and there was also scope for greater sectoral and geographical diversification. It was recognized that specific policies to enable favorable conditions for SMEs to flourish were needed so that they can easily expand into fast-growing markets and increase the production of knowledge- and innovation-based products and services.
format Report
author World Bank Group
author_facet World Bank Group
author_sort World Bank Group
title Malaysia’s Experience with the Small and Medium Sized Enterprises Masterplan : Lessons Learned
title_short Malaysia’s Experience with the Small and Medium Sized Enterprises Masterplan : Lessons Learned
title_full Malaysia’s Experience with the Small and Medium Sized Enterprises Masterplan : Lessons Learned
title_fullStr Malaysia’s Experience with the Small and Medium Sized Enterprises Masterplan : Lessons Learned
title_full_unstemmed Malaysia’s Experience with the Small and Medium Sized Enterprises Masterplan : Lessons Learned
title_sort malaysia’s experience with the small and medium sized enterprises masterplan : lessons learned
publisher World Bank, Malaysia
publishDate 2020
url http://documents.worldbank.org/curated/en/504361583989615623/Malaysia-s-Experience-with-the-Small-and-Medium-Sized-Enterprises-Masterplan-Lessons-Learned
http://hdl.handle.net/10986/33437
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