SMEs can contribute 50% to GDP by 2030, says MEDAC

The Ministry of Entrepreneur Development and Cooperatives (MEDAC) is confident the target of 50% contribution of small and medium enterprises (SMEs) to the gross domestic product (GDP) under the National Entrepreneurship Policy (NEP) can be achieved by 2030.

According to its Minister Dr Wan Junaidi Tuanku Jaafar, SMEs contribute 38% to the GDP. The NEP was drafted in 2019, at that time, the question of Covid-19 did not exist yet, and when the pandemic, MEDAC strengthened its resolve to achieve that goal.

“I am confident that within 10 years, we can achieve the set target through cooperation with other ministries,” he told reporters. From April 1 to July 19, 2020, 82,555 new businesses had registered with the Companies Commission of Malaysia.

The NEP, launched on July 11, 2019, is a guide to provide a holistic framework or ecosystem for rapid development of entrepreneurship in Malaysia.

Apart from that, MEDAC has also targeted the 14,625 cooperatives nationwide to contribute up to RM100 billion in 2030 to the GDP compared with the current RM40 billion, through the Cooperative Transformation 2020, which has been approved by the government over the last two weeks.

“Through the Cooperative Transformation 2020, we want 80% of the cooperative members who are currently under the B40 category to be able to change to the M40 or better, with the benefits to be shared together,” he added.

Meanwhile, the minister also hoped that Budget 2021 tabled on Nov 6 would be approved, as there are more than 900,000 entrepreneurs comprising SMEs and micro entrepreneurs who need help, so they can continue to be competitive and viable in today’s challenging situation.

“Some 48% of SMEs provide employment opportunities to Malaysians, and during the Covid-19 pandemic, their businesses are affected. Hopefully, the funding allocation provided by the government in Budget 2021, can help to sustain their businesses,” he said.

-Bernama-