KOTA KINABALU (Oct 12): The Small Medium Enterprise Association of Sabah (SME Sabah) has called for government intervention for Foreign Direct Investments (FDIs) to source 30 per cent of their requirements from Sabah SMEs.
SME Sabah founding president N.K. Foo said FDIs coming to Sabah such as the SK Nexilis, part of the South Korean giant conglomerate SK Group and West Malaysian electric coach vendor, Gemilang Coachworks Sdn Bhd, can help to build up cottage type of industries to be owned by Sabah SMEs by granting them sufficient orders on a contract term basis.
With steady orders from these contract orders, he said these Sabah SME start-ups can focus on their productions initially.
“Gradually they will be able to get orders from other similar manufacturers and grow to be independent manufacturers,” Foo said during SME Sabah’s courtesy call to the Chief Minister Datuk Seri Panglima Hajiji Noor on Monday to donate personal protective equipment (PPE) to support the government’s fight against the Covid-19 pandemic.
He said SME Sabah can help to play the role of a facilitator to seek win-win solutions for the FDI and these Sabah SME start-ups.
“In this way it is hoped that this business model can contribute towards achieving our industrialization goals under the Sabah Maju Jaya – Industrial sector goal.”
Foo further said that such new business opportunities can help create new businesses and employment for many of the unemployed or businessman that terminated their businesses as a result of the pandemic.
“They can then have a chance to start a new business to rebuild their livelihood.”
He said SME Sabah is willing to interact with the FDIs to find practical win-win solutions towards helping Sabah SMEs to develop a new business in supplying items to these FDIs, for instance, in the manufacturing of selected parts.
SME Sabah also suggested to Hajiji that two free trade zones (FTZ), one in Sepanggar and another in Palm Oil Industrial Cluster (POIC) should be included in the 12th Malaysia Plan (12MP).
He said the FTZ is an important necessary support for Sabah’s exports to be further developed.
Earlier, Foo briefed the Chief Minister on the background of the association.
He said the association’s membership had. quadrupled during the past three years since SME Sabah was formed in April 2018.
“We now have representatives living in various districts such as Kota Kinabalu, Sandakan, Tawau, Lahad Datu, Ranau, Keningau, Kudat and Labuan.
This enabled SME Sabah to more effectively serve SMEs in these localities through interactions with our directors living in these localities.
“The name list of our Council members is pinned in the SME Sabah Facebook page.”
Foo added that SME Sabah acts as a medium to facilitate interaction between SMEs and the government by bringing to the attention of the Sabah government issues concerning SMEs in Sabah.
He said the association had also been working hard to help the SMEs in a number of ways such as to disseminate information to SMEs in respect of various financial and technical assistance offered by the government, especially during the current pandemic.
SME Sabah later handed over the PPE items, comprising 120 bottles of Hunt oxygen inhaler made in Malaysia, 80 boxes of mask, 30 bottles of hand sanitizer, 100 sets of test kit and 24 pieces of temperature gauge or thermometer to Hajiji.
Also present were State Secretary Datuk Seri Panglima Safar Untong, Political Secretary to the Chief Minister Datuk Dr Roland Chia Ming Shen, SME Sabah deputy president Datuk Tan Kai Teck, co-founder and vice president Ngan Yoke Loo, vice president Terrance Chong Kett Chiew and secretary general Lie Chun Vui.
Source: https://www.theborneopost.com/2021/10/12/sme-sabah-seeks-govt-intervention/