2021 Budget: Ensuring the growth of SMEs, cooperatives

KUALA LUMPUR: The 2021 Budget, together with the assistance rolled out under four economic stimulus packages, shows the Perikatan Nasional government’s commitment to build economic resilience among small- and medium-sized enterprises (SMEs) and cooperatives.

Entrepreneur Development and Cooperatives Minister Datuk Seri Wan Junaidi Tuanku Jaafar said the government also recognised the role played by some 900,000 SME and micro-scale entrepreneurs, and 14,000 cooperatives in driving the economy.

Before the Covid-19 pandemic, Wan Junaidi said SMEs contributed 38 per cent towards the nation’s gross domestic product (GDP) and helped to create 48 per cent or about seven million job opportunities.

He said cooperatives, comprising 6.09 million members nationwide, had helped to generate RM40 billion of the country’s GDP.

“Despite the challenges brought about by the pandemic, the ministry is optimistic of achieving the target outlined in the National Entrepreneurship Policy 2030 for SMEs to generate 50 per cent of the country’s GDP by 2030.

“The ministry has been intensifying efforts as well as shifting focus to ensure SMEs and cooperatives continue to be aided,” he told reporters here yesterday.

The 2021 Budget, Wan Junaidi said, also reflected the efforts by the government to help SME entrepreneurs expand their business as well as generate greater wealth, which would in turn help create a more conducive economic environment.

“With the 2021 Budget, we hope to elevate SME entrepreneurs, who are mostly from the B40 income segment, to break into the M40 group or higher,” he said.

For SMEs and cooperatives to rise above the economic challenges brought about by Covid-19, Wan Junaidi said it was imperative for entrepreneurs to realign their business focus according to new norms.

“We understand that there are SMEs who are still stuck in the old ways of doing business. To help them tap into opportunities available in e-commerce, the government will soon be launching the national e-commerce policy.

“Under the policy that will be unveiled by Prime Minister Tan Sri Muhyiddin Yassin, the ministry will play a significant role to make sure all SMEs benefit from various e-commerce platforms.”

The ministry, he said, would also be expanding its Warong Rider online delivery service programme at every parliamentary constituency in the country.

The service, which is partly financed by the Micro Connector Programme, aims to help hawkers and traders generate employment opportunities, especially for youths in the rural areas.

Source: NST