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Malaysia’s Support System 

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Page 1: Malaysia’s Support System

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Malaysia’s Support System 

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Monitoring and Coordination of SME

Development Programmes by SME

Development Council

Secretariat: Central Bank 

Technology Acquisition and

Development

Malaysia Technology Development

Corporation (MTDC)

Multimedia Development

Corporation

Ministry of Science, Technology and

Environment

SMIDEC (now is SMECorp) 

Trade Facilitation and Market

Development

Ministry of International Trade and

Industry (MITI)

MATRADE

Farmers Association Marketing

Authority (FAMA) 

Feedback Mechanism Trade and Industry Associations Chambers of Commerce SME Association

Ministries/Agencies 

Capacity Development for SMEs with Emphasis on Productivity and

Quality Building, Improvement to Production and Business

Processes, Export Readiness and Awareness on Opportunities in

Overseas Markets  SMECorp MATRADEMARA

Ministry of Entrepreneur and Co-operative Development

Ministry of Agriculture

Construction Industry Development Board

Financial Support  Development Financial Institutions

Credit Guarantee Corporation

Commercial Banks

Venture capital companies Various Ministries and Government

Agencies 

Special Window of Assistance for

Women  SMECorp MATRADE

MTDC

Business Advisory Support 

SME Bank

SMIDEC MATRADE

Ministry of Entrepreneur and Co-

operative Development

Ministry of Science, Technology and

Environment Ministry of Youth and Sports 

Enabling

Environment For SMEs

Development

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Ministry of Entrepreneur and

Cooperative Development (MECD)

Ministry of Entrepreneur & Co-operativeDevelopment (Malaysia) (MeCD) was established

in 2004 as the main agency, which is responsible

for the development of Bumiputera

entrepreneurs.

It was formerly known as the Co-ordination of

Public Corporations (KPPA) in 1974, later

renamed Ministry of Prime Industries (KPA) in

1976. The KPA was responsible for overseeing

the administration of various public enterprise

agencies such as Majlis Amanah Rakyat (MARA),

the Urban Development Authority (UDA) and

State Economic Development Authority (SEDCs).

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MECD Functions Formulation of the policy for entrepreneur development Creation and implementation of a programme for entrepreneur

development

Streamlining the implementation of the policy for entrepreneur atthe federal and state levels

Support and facilitate the existing and would-be entrepreneurs insetting up their businesses

Creation of a strategic network of co-operation with the privatesector at the state, federal and international levels

Planning and implementation of activities that would encourageentrepreneurial culture

Encouraging the entrepreneurial development within the variousagencies under MeCD

Optimising the deployment of human resources within the MeCDand its agencies through increased productivity by inculcating aculture of excellence at the work place

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National SME Development

Council (NSDC) 

Initiatives under NSDC included enhanced access tofinancing, financial restructuring and advisoryservices, information, training and marketingcoordination, and a comprehensive SME database tomonitor the progress of SMEs acro

In 2007, the NSDC decided to appoint a singlededicated agency to formulate overall policies andstrategies for SMEs and to coordinate programmesacross all related Ministries and Agencies. SMIDEC

was tasked to assume the role and the officialtransformation into Small and Medium EnterpriseCorporation Malaysia (SME Corp. Malaysia) commenced on 2 October 2009. SME Corp. Malaysiais now the central point of reference for information

and advisory services for all SMEs in Malaysia.ss alleconomic sectors.

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From MCED to NSDC

The National SME Development Council (NSDC) The Council comprises 14 Ministries and three agencies involved in SME

development Minister of International Trade and Industry (MITI)

Minister of Finance (MOF)

Minister of Agriculture and Agro-based Industry (MOA)

Minister of Human Resource (MOHR)

Minister of Science, Technology and Innovation (MOSTI) Minister of Rural and Regional Development (MRRD)

Minister of Higher Education (MOHE)

Minister of Tourism (MOTOUR)

Minister of Domestic Trade, Cooperative and Consumerism (MDTCC)

Minister of Plantation Industries and Commodities (MPIC)

Minister in the Prime Minister's Department

Minister of Industrial Development Sabah (MID SABAH) Minister of Industrial Development Sarawak (MID SARAWAK)

Chief Secretary to the Government

Director General of the Economic Planning Unit of the Prime Minister's Department(EPU)

Governor of Bank Negara Malaysia (BNM)

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NSDC

There are 17 Ministries and more than 75 Agencies supporting the Government's SME

development efforts. Each of these organisations

has been tasked with specific development

objectives aimed at particular target groups.

Financial Assistance

Grants 

Loans 

Guarantees 

Venture Capitals 

Incentives 

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Loans Bank Negara Malaysia  Government Financial Institutions 

Bank Perusahaan Kecil dan Sederhana Berhad (SME Bank) 

 AgroBank 

Bank Pembangunan Malaysia Berhad (BPMB)  Export-Import Bank Malaysia Berhad (EXIM Bank) 

Majlis Amanah Rakyat (MARA)  Bank Kerjasama Rakyat Malaysia Berhad (Bank Rakyat) 

TEKUN Nasional (TN) 

 Amanah Iktiar Malaysia (AIM) 

Perbadanan Nasional Berhad (PNS) 

Perbadanan Usahawan Nasional Berhad (PUNB) 

Malaysian Industrial Development Finance (MIDF)  Kementerian Perdagangan Dalam Negeri Koperasi dan Kepenggunaan 

Commercial Banks 

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Ventures

Malaysia Venture Capital Management Berhad(MAVCAP) 

Malaysia Debt Venture Berhad (MDV) 

Perbadanan Nasional Berhad (PNS) 

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Incentives

Malaysia Industrial Development Authority (MIDA)  Main Incentives for Manufacturing Companies 

Incentives for High Technology Companies 

Incentives For Strategic Projects 

Incentives for Small-Scale Companies 

Incentives to Strengthen Industrial Linkages 

Incentives for the Manufacture of Machinery and

Equipment 

 Additional Incentives for the Manufacturing Sector  

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Year 2009

“The support of the local government is vital inensuring the successful development of SMEs in

any country.

Currently, at least 18 local ministries and60 government agencies are actively

involved in the development of Malaysian SMEs.

“ 

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MOSTI (Biotechnology)

Technology Park Malaysia 

 Agro-Biotech Institute Malaysia

Malaysian Biotechnology Corporation 

Malaysia Institute of Pharmaceuticals &Nutraceuticals 

Inno Biologics Sdn. Bhd. 

Malaysia GENOME Institute 

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MOSTI (Industry)

Malaysian Nuclear Agency 

Sirim Berhad 

Department of Standards Malaysia 

(STANDARDS MALAYSIA)

Malaysia Tech Development Corporation 

Malaysia Design Council 

 Atomic Energy Licensing Board