Inclusive Innovation to Empower the Bottom 40% Malaysia

Size: px

Start display at page:

Download "Inclusive Innovation to Empower the Bottom 40% Malaysia"

Randall Goodman
5 years ago
Views:

1 Multi-Year Expert Meeting on Enterprise Development Policies and Capacity-building in Science, Technology and Innovation (STI) (Fourth session) Geneva, January 2012 Inclusive Innovation to Empower the Bottom 40% Malaysia by Fadzilah Ahmad Din Senior Director, Development Division, Malaysia This view expressed are those of the author and do not necessarily reflect the views of UNCTAD.

Innovation to Empower the Bottom 40% BY FADZILAH AHMAD DIN SENIOR DIRECTOR BUSINESS

my MALAYSIA Source: Department of Statistics, Malaysia & World Bank Group 2 SMES IN

< USD 8.0 Mil < USD1.5 Mil SMEs Constitute Bulk Of es In Malaysia: - 99.

period 2005 2009 mainly due to supporting policy initiatives such as: Establishment of

Visit Malaysia Year, Government salary increment, RMK9 projects) GDP Annual Growth (2000

2 Multi-year Expert Meeting on Enterprise Development Policies and Capacity Building in Science, Technology and Innovation PROFILE OF MALAYSIA January 2012 Inclusive Innovation to Empower the Bottom 40% BY FADZILAH AHMAD DIN SENIOR DIRECTOR BUSINESS DEVELOPMENT DIVISION MALAYSIA Source: Department of Statistics, Malaysia & World Bank Group 2 SMES IN MALAYSIA ARE THE BACKBONE OF THE ECONOMY PERFORMANCE OF SMES OUTPACED THE OVERALL ECONOMY < USD 8.0 Mil < USD1.5 Mil SMEs Constitute Bulk Of es In Malaysia: % Of Establishments (2003: 548,267) SME growth outperformed overall economy for the period mainly due to supporting policy initiatives such as: Establishment of National SME Development Council (NSDC) in 2004; and Other supportive policies (PEMUDAH, Visit Malaysia Year, Government salary increment, RMK9 projects) GDP Annual Growth (2000 price) - Bulk (80%) Micro Enterprises, With Less Than 5 Workers - Mainly Concentrated In Services Sector (87%) GDP & SME Growth SME Contribution to: GDP 32.% Employment 59% Exports 19% 3

TOWARDS A DEVELOPED ECONOMY Malaysia has been progressive in introducing policies and programmes for economic growth.

Source: NEM For Malaysia Part 1 & Economic Planning Unit Source: NEM For Malaysia Part 1 & National Innovation Model 6 FOCUSING ON SME DEVELOPMENT: THE SME MASTERPLAN (2011-2020) Transformation

Bottom 40% SME MASTERPLAN 2011-2020 (SME Corp.

PROGRAMMES FOR SME GROWTH HIP 1 Integration of Registration and Licensing of Establishments To create a single registration point through interfacing of the current National Registration

3 TOWARDS A DEVELOPED ECONOMY Malaysia has been progressive in introducing policies and programmes for economic growth. INTRODUCTION OF NEW ECONOMIC MODEL THE NEW ECONOMIC MODEL 40% OF MALAYSIAN HOUSEHOLDS STILL EARN LESS THAN USD450 A MONTH. Source: NEM For Malaysia Part 1 & Economic Planning Unit Source: NEM For Malaysia Part 1 & National Innovation Model 6 FOCUSING ON SME DEVELOPMENT: THE SME MASTERPLAN ( ) Transformation through reinvigorating the private sector Phase 1 (Sep 2010 Apr 2011) Diagnostic analysis New Policy Framework aligned to NEM with Broad Strategies & Recommendations Endorsed by NSDC on 29 April 2011 Bottom 40% SME MASTERPLAN (SME Corp. & World Bank) SMEs as the engine of growth and innovation Phase 2 (May 2011 Mac 2012) Action plans & Monitoring Mechanism (Dashboard) Transfer of knowledge & capacity building 7 HIGH IMPACT PROGRAMMES FOR SME GROWTH HIP 1 Integration of Registration and Licensing of Establishments To create a single registration point through interfacing of the current National Registration System(MyCOID) and the National Licensing System(BLESS) HIP 2 Technology Commercialisation Platform (TCP) To provide a national network of privately-managed platform to promote innovative ideas right through from proof of concept(poc) to the commercialisation stage HIP 3 SME Investment Programme (SIP) To provide early stage financing through the development of investment companies which would investinpotentialsmesintheformdebt,equityorahybridofboth HIP 4 Going Export (GoEx) Programme Offers customised assistance to new exporters and SMEs venturing into new markets RURAL SMES & HIP 5 Catalyst Programme ENTREPRENEURS To create homegrownchampions through a targeted approach with support in the area of financing, market access and human capital development. RURAL SMES & HIP 6 Inclusive Innovation ENTREPRENEURS Specifically designed to empower the bottom 40% of the income group to leverage on innovation to promote transformation of communities including microenterprise in the rural areas through handholding and technical and management support. HIP = HIGH IMPACT PROGRAMMES 8

HIP6 - INCLUSIVE INNOVATION TO EMPOWER THE BOTTOM 40% COMPONENTS OF ENRICHMENT & ENHANCEMENT PROGRAMME Context Promote rural transformation Improve business environment for SMEs especially in rural

Building Handholding Process Support Facilities Advisory Incentives Promote Linkages Opportunities Online Platform and ICT Enablers Promotional Support BAS = AdvisoryServices Commercialised products

4 HIP6 - INCLUSIVE INNOVATION TO EMPOWER THE BOTTOM 40% COMPONENTS OF ENRICHMENT & ENHANCEMENT PROGRAMME Context Promote rural transformation Improve business environment for SMEs especially in rural areas Increase the innovation pool Innovation targeted at masses Innovation from grassroots E² BAS Outreach Programme E 2 =Enrichment&EnhancementProgramme Technical and Management Advisory Capacity Building Handholding Process Support Facilities Advisory Incentives Promote Linkages Opportunities Online Platform and ICT Enablers Promotional Support BAS = AdvisoryServices Commercialised products & services to mass markets (incl. Govt procurement) Diagnostics Capacity Building Advisory & Technical Support Micro Enterprise Competitiveness Rating for Enhancement (M-CORE) Programme A diagnostic tool used to rate and enhance competitiveness of MEs based on their performance and capabilities Skill Upgrading Brand Awareness One Referral Centre (ORC) Subsidized short-term courses provided by 40 training centres appointed by SME Corp. Malaysia SME-UNIVERSITY Internship Programme Entrepreneurship Training Mobile Branding Gallery Brand and Packaging Awareness Workshops Advisory services for start-up & established business by Counsellors and SME Expert Advisory Panel(SEAP) Advisory services related on access to finance provided by various financial institutions SCORE & M-CORE A TOOL TO RATE CAPABILITY OF SMES ADVISORY SERVICES What is SCORE? Function Parameter Characteristics Implementation Channel Diagnostic tool to rate and enhance competitiveness of SMEs based on their performance and capabilities. Developed in-house in Aug 2007 Identify strengths and weaknesses for improvements; and Facilitate linkages. Performance Technical Capability Financial Capability Quality System Management Capability Innovation Production Capability 0 2 Stars : Very basic business operation 3 5 Stars : Some degree of sophistication and can be groomed for export Work with partner agencies on the various SCORE models Radar Diagram for 3-Star company Financial Capabilities Capability Management SCORE Operations M-CORE Radar Diagram for Level 2 Micro Enterprise 11 Advisory Services (BAS) on business matters by qualified and knowledgeable Counselors, Coaches as well as industry experts under the SME Expert Advisory Panel(SEAP). From Jan-Dec 2011, a total of 5,098 SMEs attended the ORC.and 659 participated in the Pocket Talk session Knowledge/Ex perience Sharing Introduction to Financial Institutions Product Gallery Advisory ONE REFERRAL CENTRE Resource Centre IP Registration Pocket Talk 12

SME-UNIVERSITY INTERNSHIP PROGRAMME The SME University Internship Programme is an initiative to link SMEs (Start-Ups and Rural) to universities to upgrade the SMEs capacity and capability.

5 SME-UNIVERSITY INTERNSHIP PROGRAMME The SME University Internship Programme is an initiative to link SMEs (Start-Ups and Rural) to universities to upgrade the SMEs capacity and capability. The synergy between the Industry and University is also meant to give opportunities for students to apply their knowledge in the real business environment and learn best business practices. BASED ON CONSULTING BASED LEARNING FOR ASEAN SMEs (COBLAS) University (Academia) BEFORE A Focus Group will evaluate and recommend improvements. BRANDING AND PACKAGING MOBILE GALLERY To provide awareness across the country (particularly to rural communities) on the importance of innovation branding and packaging on meeting global market needs Workshops and Training sessions for Adoption of quality standards Promoting IP best practices& trademarks Barcoding On-Line Marketing& ICT Enablers Local & International Networking Local SMEs AFTER Students In this case study, the group recommended a laundry shop to improve and diversify its storage system for clean and dirty laundry. 13 BEFORE AFTER OUTREACH PROGRAMME: ONE DISTRICT ONE INDUSTRY [SDSI] ( ) NEWS RELEASE FOR SDSI NATIONAL ANNUAL SHOWCASE ,835 SMEs 96% Micro Enterprises Objective: Strengthening local communities with sustainable socioeconomic activities. 20.1% (973 SMEs generate revenue RM50K-500K/year CUSTOMER SATISFACTION 21.6% Increase Tourist arrival (Average 30,000 tourist per year) 12,428 New employment created Statistics from Showcase 105,000 Visitors 523 booths Generated RM 3.8 Million JOINT EFFORTS BY Ministry of Trade & Industry, Ministry of Rural & Regional Development, Ministry of Agriculture & Agro-based Industry, Ministry of Information, Culture & Communication, Ministry of Tourism & FELDA 60 Matching Sessions 16

6 OUTREACH PROGRAMME- AGRICULTURE SECTOR MALAYSIA AGRICULTURE & AGROTOURISM INTERNATIONAL SHOW The MAHA Exposition biennial series is Malaysia s leading agricultural show that acts as a: I. Information Centre, for latest innovation and new technologies in agriculture production II. Platform for Opportunities for Farmers, Agrobased and Young Entrepreneurs III. Showcase of Malaysia s Agriculture and Agro-based Industry to attract Foreign Investment. GEMS FROM THE VILLAGE SUCCESS STORIES AND INNOVATION FROM THE RURAL COMMUNITY Statistics from Show in 2010: 2.66 Million Visitors 2500 booths Generated RM Million Sales Enquiries SUCCESSFUL VILLAGE INDUSTRY (HOMESTAY) WALAI TOKOU HOMESTAY TURNS A REMOTE VILLAGE INTO A TOURIST SPOT Majority of the population in Kundasang area are below the age of 18 and are involved in the traditional agriculture or palm oil sector. Their income are inconsistent (USD ) and depended solely on the crops. INCREASING EFFICIENCY WITH SIMPLE INVENTIONS FRUGAL INNOVATION CREATED TO REDUCE THE TIME OF PREPARATION The participating 50 villagers from 8 villages are now making an average of USD Won the : One District One Industry (SDSI) Homestay Category Malaysian Tourism Awards 2010/2011 (Innovative Homestay) The profits generated directly from tourist visits are converted into microfinancing that could be taken up by participating villagers to improve basic amenities. i.e. Proper hygiene and toilets, electricity and water supply. The Sabah Tourism Board reported that in 2010, there were 16 similar homestays in the state catering to 17,558 tourist. It generated USD 0.76 Million for that year. Perhaps one of the biggest obstacles we faced in the early stages was to change the mind-set of villagers and in trying to make them understand and see the benefits of the homestay business concept KOHADIE WATIMAN 19 Safie Rashid, 56, from Kampung Charok Ghorok, Kedah created a device to extract coconut milk(santan). The device consists of wood, a rotating motor andaclothsackcostingonlyusd15. It has successfully reduce the time of extraction of 100 coconuts from two hours to half an hour. Creation of Asziman Sukran from a training center injohorwiththe intention of reducing the time of extracting pineapple flesh from its core and skin. The 55kg device uses a simple pressure technology and can extract flesh from 300 pineapples per hour compared to 60 per hour when done manually. The center recently receives support from Malaysia Pineapple Industrial Board to 20 commercialize the product

TRADITION, CREATIVITY AND THE COTTAGE INDUSTRY One Referral Centre Advisory Services (BAS) INFOLINE 1-300-88-1801 A RURAL WOMAN S DRIVE TO IMPROVE HER LIFE Sania Jugi is a 51 year old Iban from the

7 TRADITION, CREATIVITY AND THE COTTAGE INDUSTRY One Referral Centre Advisory Services (BAS) INFOLINE A RURAL WOMAN S DRIVE TO IMPROVE HER LIFE Sania Jugi is a 51 year old Iban from the rural village of Ulu Bintagor, Sarawak. She makes her income by making handcrafts (Wooden Figurines and Key Chains) and would make USD 62/ month during good seasons. THANK YOU To improve her skills, she trained under the Sarawak Handicraft Cooperation and have since been making handbags from natural products. SMS for SMEs Info & Other Information Send to She now makes about USD /month. SMECORP STATUS [Ref. No] SMECORP BORANG [alamat emel] Her bags are particularly popular with customers from Japan, Germany, Hong Kong. 21 Find us on Facebook SME Corp. Malaysia

Background of SME. SME Corp. Malaysia s Corporate Headquarters, Kuala Lumpur

Background of SME. SME Corp. Malaysia s Corporate Headquarters, Kuala Lumpur Background of SME SME Corp. Malaysia s Corporate Headquarters, Kuala Lumpur SME Corporation Malaysia 2 May 1996 Established as Small and Medium Industries Development Corporation (SMIDEC) Provide loans