...International Review of Business Research Papers Vol.2. No.1 August 2006 pp.1-14 An Evaluation of SME Development in Malaysia Ali Salman Saleh∗ and Nelson Oly Ndubisi∗∗ Small and medium enterprises (SMEs) in play a vital role in the Malaysian economy and are considered to be the backbone of industrial development in the country. However, few studies examined their development, challenges and future prospects. Therefore, the aim of this paper is to examine and analyse the role of SMEs in different sectors as well as their major contribution to the economy. The paper goes further to review the existing literature as well as the empirical studies in order to identify the major challenges (domestically and globally) that face this sector. The key messages from the studies examined in this paper are that Malaysian SMEs still face many domestic and global challenges in achieving economies of scale and competing internationally. Among the challenges are the low level of technological capabilities and limited skilled human capital resources, a low level of technology and ICT penetration, low levels of research and development (R&D), a substantial orientation towards domestic markets, a high level of international competition (for example, from China and India), a high level of bureaucracy in government agencies, and internal sourcing of funds. These characteristics suggest that government programs and incentives are either insufficient or not delivered effectively...
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...International Review of Business Research Papers Vol.2. No.1 August 2006 pp.1-14 An Evaluation of SME Development in Malaysia Ali Salman Saleh∗ and Nelson Oly Ndubisi∗∗ Small and medium enterprises (SMEs) in play a vital role in the Malaysian economy and are considered to be the backbone of industrial development in the country. However, few studies examined their development, challenges and future prospects. Therefore, the aim of this paper is to examine and analyse the role of SMEs in different sectors as well as their major contribution to the economy. The paper goes further to review the existing literature as well as the empirical studies in order to identify the major challenges (domestically and globally) that face this sector. The key messages from the studies examined in this paper are that Malaysian SMEs still face many domestic and global challenges in achieving economies of scale and competing internationally. Among the challenges are the low level of technological capabilities and limited skilled human capital resources, a low level of technology and ICT penetration, low levels of research and development (R&D), a substantial orientation towards domestic markets, a high level of international competition (for example, from China and India), a high level of bureaucracy in government agencies, and internal sourcing of funds. These characteristics suggest that government programs and incentives are either insufficient or not delivered effectively...
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...vol. 12, no.3 (http://www.arraydev.com/commerce/jibc/) ICT Adoption in Malaysian SMEs from Services Sectors: Preliminary Findings Alam, S. S., Senior Lecturer, Faculty of Business Management, MARA University of Technology, Shah Alam, Selangor, Malaysia E-mail: syedshah@salam.uitm.edu.my Dr. Syed Shah Alam is a Senior Lecturer in the Faculty of Business Management at MARA University of Technology, Shah Alam, Selangor Malaysia. He holds a B.Com (Marketing), M.Com (Triple) Marketing, Finance and Banking and Management, Ph.D. in E-Commerce. His research interest includes Mobile E-commerce, E-business, Ecommerce and online trust. Mst. Nilufar Ahsan, Research Fellow, Faculty of Business & Law, Multimedia University, 75450 Melaka, Malaysia E-mail: nilu-far70@yahoo.com Mst Nilufar Ahsan holds a B.Com (Management), and M.Com in Management. Her research interest includes organizational behaviour, and ICT management area. She is currently a doctoral candidate in the Faculty of Business and Law, Multimedia University, Melaka Malaysia. Abstract The purpose of this research was to investigate the extent to which small and medium size businesses in the southern region in Malaysia are prepared for ICT adoption. Most of the businesses have now accepted ICT as an important tool to increase its business in the domestic as well as global market place. In future ICT will grow more rapidly in the Malaysian SMEs sectors. In order to increase the effectiveness of ICT, companies can use Internet...
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...AND CHALLENGES OF MANUFACTURING IN MALAYSIA Recently, manufacturing industries in Malaysia grow very rapidly if compared to previous decades. With the rapidly grow of manufacturing industries, the government has to play its role in order to ensure every aspect of current trading policies and regulatory to be obeyed. Other than that, this will ensure that the current trading and manufacturing environment in Malaysia to be peaceful yet globally competitive. In this report, a number of importance and challenges faced by manufacturing sector in Malaysia will be focused on. The scope of this report only covers the situation in Malaysia manufacturing environment and at the same time, it will explain some benefits that our nation can get from the cooperation with developed countries such as Australia and Japan. Manufacturing Sector in Malaysia and its Importance To start with, manufacturing sector in Malaysia contributes almost 80% of overall country’s export and besides, Malaysia also known as the 17th largest exporting nation in the world [1]. For that reason, Malaysia’s government has to work hard in order to maintain, preserve and enhance our manufacturing sector. From [1], it is stated that products manufactured in Malaysia are accepted in developed countries such as US, EU and Japan. This shows that our manufacturing sector already achieved a level that can be proud of. Due to exporting her product to other countries, Malaysia has to obey some regulations in a...
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...Contents Abstract 2 Introduction 3 Literature Review 7 (A) Social Media 7 (B) Small Medium Enterprise (SMEs) 9 (C) Social Media and SMEs 10 Methodology 12 Findings 13 Discussion 21 Conclusion 25 Recommendation 26 Reference 27 Abstract The purpose of the study is to determine the effectiveness of social media as marketing tool for Small Medium Enterprise (SMEs) Companies in Malaysia. The objectives of the study are, first, to determine the level of influence social media on customer knowledge towards the Malaysian SMEs companies brand, products and services and second, to investigate the causes and effects of the usage social media as marketing strategies for SMEs companies in Malaysia. The study was conducted based on a quantitative approach. A set of questionnaire was distributed to 30 random respondents. In addition, the research pointed out that there are a lot of factors influencing the success of social media as a marketing strategy. The conclusion drawn from the research was that internal and external factors are affecting the effectiveness of social media as one of the marketing tools. One of the major limitations encountered in the research was time constraint. Future researchers are advised to conduct this research for a longer period of time in order to collect more data. Keywords: effectiveness, social media, SMEs in Malaysia, quantitative Introduction In today’s technology driven world, social media have become a venue where retailers most...
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...VISION AND MISSION 5 4.0 THE OPPORTUNITY 6 4.1 PESTLEANALYSIS…………………………………………………………………….…..6 4.2 SWOT ANALYSIS 123 5.0 MARKET RESEARCH 17 5.1 FEASIBILITY ANALYSIS…………………………………………………………………. 5.2 MARKET ANALYSIS………………………………………………………………………. 5.3 COMPETITORS ANALYSIS………………………………………………………………. 6.0 BRANDING 35 7.0 RESOURCES AND FINANCE 37 8.0 RECOMMENDATION 38 9.0 REFERENCES 43 10.0 APPENDIX 45 1.0 EXECUTIVE SUMMARY The purpose of this business plan is to create the image of business potential growth of MH Sinar Resources if they are given the opportunity for expanding it. MH Sinar Resources is a small medium enterprise (SME) business and had operated from 13th of March 2013. Since that, they are practicing a poor performance due to lack of experience, knowledge and expertise. They are operating the business without any proper documentation system. Most of SME business are having the same situation and difficulties to sustain and as well as to expand their business and facing the challenges to compete with the well-established business within the same industry. These will create the huge gap between the ‘newbies’ and the existence business. Among the problems...
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...Marketing Strategies and the Difference Level of Sales and Profits Performance of the Batik SMEs in Malaysia. Mohd Zulkifli Mokhtar & Wan Nur Syahida Wan-Ismail Faculty of Management and Economics, University Malaysia Terengganu, Malaysia Correspondence: Mohd Zulkifli Mokhtar, Faculty of Management and Economics, University Malaysia Terengganu, Mengabang Telipot, 21030 Kuala Terengganu, Terengganu, Malaysia. E-mail: zulkifli@umt.edu.my Abstract In this research, the business owners of batik SMEs were analyzed on their marketing strategies. The objective is to examine if the marketing strategies of high performance batik SMEs differently from low performance batik SMEs. The high and low performance batik SMEs were categorized based on their annual sales and profits for three consecutive years. For this purposes, the questionnaires were distributed among 186 batik business owners in Malaysia. The data collected were then analyzed using Mann-Whitney U Test and Chi-Square Test. The result found that the high sales and profits performers are not only focused in local market, but they expand their sales out-of their states. For high sales performers, they are frequently advertised their businesses and using various promotional tools. Hence, efforts should be made by the low performers to find and expand their sales outside of their states, advertise their businesses more frequently and not only depends on personal network as promotional tools. Using various promotional...
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...1.0 INTRODUCTION Presently, in order for small medium enterprises (SMEs) to be competitive in the global economy, the quality of their products and services cannot be under estimated. Therefore in today's economic climate, SMEs competitions are greater than ever may in local or global. The quality of goods and services are most important thing for SMEs to continue for grow and survive. We can see that, many SMEs in Malaysia lack the resources and knowledge to practice the quality management in their operations. The immediate goal for any small to medium-sized enterprise (SME) is to survive and maintain in the economic growth. According to the Prime Minister of Malaysia, Small Medium Enterprises (SMEs) has been one of the major engines of growth of Malaysia’s economy. With globalization and the accompanying liberalized trading environment, trade is expected to intensity, the more integrated global market also presents new opportunities and greater market access for Malaysia SMEs. It is acknowledge that small and medium enterprise play a great role in develop the world, unlike in developed where the benefits through high cost such as lost of scale production, inefficiency and appalling employment conditions. In this facet of a country’s economy, labor plays a great role which is for most SMEs are labor intensive in developing the world. 2.1 BACKGROUND OF THE STUDY Productivity is an important aspect of the construction industry that may be used as an index...
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...Opportunity High potential in attract investors. As we can see here the Telekom Malaysia introduce SME BizFest 2012 aims to provide a synergistic ICT showcase for Malaysian SMEs to increase product and services knowledge and awareness among the fraternity. TM doing this event to empower their businesses via knowledge sharing and by participating in the activities held. In addition, SME BizFest provides the platform for SMEs to interact among themselves and opens up business opportunities through business matching sessions organized during the two-day event. Other than that, from the report the SME BizFest 2012 series is expected to attract more than 500,000 participants from the SME business community in Malaysia who require ICT solutions to improve and enhance their business operations. This will open the opportunity to the TM to attract the investors from the outside country. Because, when many people are participated in these business products it will enhance business processes, increase productivity and business revenues are available at a very special rate throughout the duration of SME BizFest 2012. Growing Broadband Market “Our business segments continue to record strong growth in revenue and business generation especially in our Retail and Global Lines of Business. We will remain focused on expanding our UniFi coverage and capitalise on the strong take-up we are still experiencing to date. The emphasis on customer service and product differentiation is clearly helping...
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...Malaysia is an emerging country with continuously grow in its economy. As announce in 2016 Malaysia budget, Malaysia government lists some objectives of the budget is to strengthening economic resilience by increase the capacity of domestic market and also increase exports. Promoting the well-being of nation by to be more prosperous and easing the cost of living of the people by giving subsidy and fair and equal tax also wealth distributions. A) Important issues in 2016 Malaysia budget There are a number of issues that being concerned in the 2016 Malaysia budget. By focusing to individual and Small and medium enterprises (SMEs), 2016 budget seems as the relief for Malaysian. Firstly, to encourage SMEs to expand their export markets, the new exemption are being given to SMEs with the following revised value added criteria, a) income tax exemption of 10% of the value of the increased exports to manufacturers provided that the goods exported attain at least 20% value added b) income tax exemption of 15% of the value of the increased exports to manufacturers provided that the goods exported attain at least 40% value added. All of this income tax exemption is restricted to 70% of the statutory income. This effectively starts from year assessment of 2016 to 2018. Secondly, for the individual, there are increases of tax rate especially to high income earner. The marginal tax rate for the chargeable income bracket from RM 600,001 to RM 1 million to be increased to 26%....
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...the global standard-setting process. National and other accounting standard-setting bodies should continue to undertake research, provide guidance on the IASB’s priorities, encourage stakeholder input from their own jurisdiction into the IASB’s due process and identify emerging issues. 1) Promote Regional collaboration ( Jasmin) The MASB actively participate in the activities of the Asian-Oceanian Standard-Setters Group (AOSSG), where Malaysia is one of the founding members. The composition of members of the AOSSG with countries such as Australia, China, Japan, Korea and India, to name a few, will endow with it a stronger voice to convey concerns and important feedback on issues from the Asian-Oceanian region to the IASB to improve future IFRS towards development of a single set of high quality international accounting standards. The AOSSG currently has 25 member standard setters from the Asian Oceanian region: Australia, Brunei, Cambodia, China, Dubai, Hong Kong, India, Indonesia, Iraq, Japan, Kazakhstan, Korea, Macao, Malaysia, Mongolia, Nepal, New Zealand, Pakistan, Philippines, Saudi Arabia, Singapore, Sri Lanka, Thailand, Uzbekistan and Vietnam. For more details about AOSSG, please visit www.aossg.org. 2) Facilitate...
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...enterprise (SME) in Malaysia. The first category comprises agriculture, services, information and communication technology (ICT) with less than 50 full-time employees or annual sales turnover fewer than RM 5 million. The second included manufacturing and agro-industries with less than 150 full-time employees or annual sales turnover not exceeding RM25 million. Small and medium sized enterprise (SME) is the engine for economic growth. Development of SME brings technology development and employment creation. Michael and John (1998) have noted that relative to larger firms, SMEs are well prepared for facing the challenges of increasing competition and globalization of markets. Planning is usually done first by entrepreneur when decided to start a SME. This is because everything else will be depends on the planning makes by the entrepreneur. A business plan plays an important role in obtaining funds and as a blueprint for the enterprise operates towards success. As Peel and Bridge (1998) and George and Jonathan (2002) reported, there is a strong connection between the success of a SME and its long-term planning. In Malaysia, National SME Development Council (NSDC) was established in June 2004. It acts as the highest policy-making body to chart the direction and strategies comprehensive and coordinated development across all sectors of the economy. Some examples of successful SMEs in Malaysia are Unico Holdings (Unico) and Hockpin Precision Sdn Bhd (HP). A SME have better...
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...Social Safety Net In Budget 2010, in terms of social safety government focusing in enhancing the well-being of the people in both rural and urban. Government will continue to their effort to ensure the people in both areas will enjoys all the benefits and developments in a peaceful and safe environment. The step to strengthen public safety is taken to reduce the rate of crime. Government will allocate almost RM3.7 billion in order to increase the efficiency of security force. This budget will be use in term of upgrading security equipment to become more modern and sophisticated equipment. In budget 2010, government mention that the prosperity of people is their priority to enable people to live in a peaceful and safe environment. The Government is serious in reducing the crime rate and will implement crime prevention measures. The Government targets to reduce the crime index by 5%, including reducing street crimes, such as snatch thefts and robberies by 20% by end of 2010. A total of RM1 billion will be provided to further improve the services of Royal Malaysia Police (PDRM) in 2010. Apart from focusing internal threats, government also focus to strengthen the security of nation borders from the internal threat such as smuggling and pirate threats. In budget 2010, government allocate a total of RM1.9 billion to upgrade armed force equipment and sentry force. RM622 million will be provided to Maritime Enforcement Agency to ensure the safety in national waters. In...
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...The global financial crisis in 2008-2009 made a severe change to the world economy with include United States. The problem begins in the US Financial system, arising from the deteriorating quality of subprime assets that started in 2007, that caused into a major horrible global financial crisis in the last half of 2008. From a housing crisis, it quickly grew into a banking crisis with the investment and merchant banks first absorbing the impact before it spread to the commercial banks. The main reason of this crisis was Lax Regulation and Low Lending Rates. Moreover the greed of top management people of the financial institutions was another reason of this crisis. Especially, several failing of many large U.S and global financial institutions in September 2008 generated widespread fear of a systemic disruption across global financial markets which in turn had led to the “freezing” of the interbank and credit markets in many financial centres around the world. Despite the unprecedented large and aggressive financial measures taken by the authorities, the crisis intensified as prices of a large number of classes of financial assets collapsed resulting in a huge negative income and wealth effect. With the United States’ economy contracting sharply, it sent ripples across export-dependent Asian economies, which began to face a contraction as a consequence. Although the Malaysian economy was insulated from the direct effects of financial exposure because the new derivatives were not...
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...1.0 INTRODUCTION The multimedia super corridor (MSC Malaysia) is the government and major national initiative that was designed as a catalyst for the growth of ICT and to satisfy the country’s ambitions in producing fully develop status by the year 2020. In 1996, MSC was set to aimed to build competitive cluster of local ICT and attract word class companies with the passion of becoming a global ICT hub and multimedia variation, procedure and maintenance. The initiative spearheads a number of ICT projects that are intended to transform Malaysian society into a k-economy through the use of ICT including education, healthcare, commerce, governance and industries. The development of MSC has created a lot of incentives and policies that were designed...
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