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KUALA LUMPUR: Budget 2023 and the Madani Economy Framework will spur the economy and drive more significant industry growth, including bolstering the well-being of small and medium enterprises (SMEs).
SME Association of Malaysia national vice president Chin Chee Seong said the association perceives the Madani Economy Framework as a meticulously crafted blueprint, stating that micro-SMEs and the informal sector benefit most from the framework.
Chin said the framework's main priorities encompass supporting startups with funding, offering business and micro-loans, advocating for upskilling through Technical, Vocational Education and Training (TVET), and allocating substantial resources for SME digitalisation and automation.
"While the framework's strategies and initiatives hold the potential to rejuvenate and foster SME growth, a stronger commitment from the government is also required to ensure effective implementation.
"The government needs to ensure that the budget is distributed in a timely manner for the implementation of initiatives," he told the New Straits Times.
Chin said the pronounced emphasis within the Madani Economy Framework on assisting and nurturing micro-SMEs and the informal sector is both commendable and pivotal, especially given the considerable adversities they have endured due to the Covid-19 pandemic's repercussions.
He said sustained initiatives and the effective execution of incentive programs in digitalisation, reskilling, and upskilling constitute the primary impetus behind bolstering business capacities.
"While the outlined plans, initiatives, and objectives may be somewhat novel, many of these pursuits have previously been introduced but have not received any results due to insufficient efforts.
"We find it heartening that Prime Minister Datuk Seri Anwar Ibrahim possesses a comprehensive understanding of the nation's and businesses' fundamental challenges.
"With his unwavering determination and dedication, we believe that Malaysia is poised to make rapid strides towards progress," he said.
The Small and Medium Enterprises Association of Malaysia (Samenta) also opined that the Madani Economy Framework will spur the economy and drive greater growth for SMEs.
Its national president Datuk William Ng said the Budget 2023 and Madani Economy Framework are spot-on in addressing the issues of structural reforms for the economy and SMEs.
Ng said this Budget 2023 initiative and framework would also help SMEs gradually migrate from a grant-based regime to one based on productivity and inclusive financing and provide a rallying point for the industry to march towards.
"SMEs at all spectrums are set to benefit from this new economic narrative. The larger ones can tap into the pivot towards a low-carbon and renewable energy transition.
"Meanwhile, the small and micro enterprises are being supported through various initiatives such as the digital matching grant, the Geran Madani initiative, and ongoing micro-loans from agencies like Tekun Nasional," he said.
In addition, Ng said the association's concern remains the same - that some brick-and-mortar retailers, trading houses, and labour-intensive manufacturers may need help navigating the new economic narrative in time to survive and thrive.
"These groups of SMEs are on the verge of being displaced by technology and the changing marketplace. So we will need to provide more help for their transition.
"Incentives will not be enough. We will need a task force to reach out and talk to each of these individually and move them rapidly into the digital and low carbon economy," he added.
Source: https://www.nst.com.my/business/2023/08/942612/madani-economy-framework-bolsters-wellbeing-smes#google_vignette