Facilitating Green & Innovative SMEs Market Access 8 May 2012 EU-Asia Biomass Best Practices & Business Partnering Conference 2012 Putra World Trade Center, Kuala Lumpur
SME CORP MALAYSIA SME Corp Malaysia is the focal point of reference for information and advisory services for all SMEs in Malaysia. To formulate overall policies and strategies for SMEs and to coordinate programs across all related Ministries and Agencies. 3 Strategic Thrusts Strengthening the Enabling Infrastructure Building the Capacity and the Capability of Domestic SMEs Enhancing Access to Financing by SMEs SME Corp Development Programs 1-InnoCERT Business Accelerator Program (BAP) Enrichment & Enhancement Program (E 2 ) SCORE One Referral Center (ORC) Skills Upgrading Program National Mark of Malaysian Brand Enterprise 50 Award Program SME Expert Advisory Program Business Linkage Program SME@University Program SME-University Internship Program 2
Profile of SMEs in Malaysia 3
SMES ARE THE BACKBONE OF THE ECONOMY 99% Total Establishments Important domestic source of growth 32% GDP Foundation & support in supply chain through forward & backward linkages Balanced growth 59% Employment Strengthen resilience of the nation's economy 19% Exports Provide support for growth of new & existing sectors Promote private sector-led growth 4 Source: Census of Establishments & Enterprises 2005
CURRENTLY, SMES ARE MAINLY IN SERVICES SECTOR Agriculture (6.2 %) Plantation and horticulture (65.6%) Fishery & aquaculture (20.8%) Poultry farming (7%) Manufacturing (7.2 %) Textiles & Apparels (23.4%) Food & Beverages (15%) Metal & metal products (13%) Services (86.6 %) Wholesale & Retail (55.5%) Restaurant & Hotel (15.2%) Transport & Communication (6.5%) Source: Census of Establishments & Enterprises 2005 5
DISTRIBUTION OF SMES BY STATE The highest no. of SMEs are situated in Klang Valley 6
RAISING THE BAR FOR SME COMPETITIVENESS 1-InnoCERT National Mark of Malaysian Brand SCORE Enterprise 50 Certification program used to recognize and certify innovative SMEs To encourage entrepreneurs to venture into high technology and innovation driven industries Depicts quality, excellence and distinction of product and services by Malaysian companies Participating companies evaluated through stringent standards to ensure adherence to the set quality standards. A diagnostic tool used to rate and enhance competitiveness of SMEs based on performance and capabilities Recognizes the achievements of Malaysia s SMEs. 50 winners are selected from: 7
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1-INNOCERT Innovation Certification for Enterprise Rating and Transformation NATIONAL INNOVATION AGENDA Human Capital NATIONAL INNOVATION COUNCIL Market Innovation Led Economy JTPIN SME & Technopreneur Adopted from Korean s CERTIFICATION FOR INNOBIZ. Passing mark of 700 and above out of 1000 points considered innovative SMEs Mission Funding Technology To identify and certify innovative SMEs and enterprises in Malaysia Institution 9 Objective To foster and support innovative SMEs and enterprises to be global innovative competitive players
THE KOREAN SUCCESS STORY Higher Added Value (4.9 times) More Jobs Creation ( 2.9 times) Higher R&D Investment (3.5 times) Higher Growth (6.9 times) Higher Operating Margin ( 4.9 times) 10
Impact to GDP after Financial Crisis - 46% of Korea s GDP is contributed by SMEs 1200 1000 800 600 Malaysia Korea Singapore Taiwan GDP (USD Billions) Law Promotion of High- Tech Start- Ups (Venture Business) (1998) Law Promotion of SME Innovation (2001): More than 15,000 Korean SMEs have received Innobiz certification (2001-2011) 1. Manufacturing 2. Services/Non-Mfg 3. Agriculture 4. Construction 5. Environment 6. Biotech 7. Software 8. Design 400 200 0 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Source : IMF, April 2009
1-INNOCERT CRITERIA Note: Based on 1-InnoCert Criteria 12
No. of companies 1-INNOCERT 1-InnoCERT Rating by Year 35 30 25 20 15 10 5 0 17 16 10 9 21 2012 2011 2010 1-INNOCERT WITH TECHNOLOGY INNOVATION RATING (Valid For 2 Years) SCORES Over 900-1,000 Over 800-899 Over 700-799 Over 600-699 1-InnoCERT RATING AAA AA A BBB 8 6 33 27 11 companies, 10% 14 companies, 12% 15 companies, 13% 1-InnoCERT Companies by Sector 6 companies, 5% 49 companies, 43% 12 companies, 10% 1 company, 1% 7 companies, 6% Agriculture Biotech Construction Environment Renewable Energy Green Manufacturing Professional Design Services Software
1-INNOCERT: BIOTECH & GREEN SECTOR 1-InnoCERT Certification for Biotech/Agro and Green Sector by Year 9 9 9 8 7 6 5 4 3 2 1 0 2 4 3 2 1 0 2012 2011 2010 4 25 Companies (of total 115 Certified 1- InnoCERT Companies) are in the Biotech & Agro Technology, and Environment Renewable Energy Green Sector. AAA AA A 14
1-INNOCERT INCENTIVES SME Innovation Award The premier award to recognise the most innovative SME, out of six (6) sectors: Green Technology Biotechnology & Agro Technology Manufacturing Services ICT & Software Development Engineering & Industrial Design RM 1 million for Top Prize Winner RM 200,000 for category Winner 15
BENEFITS OF 1-INNOCERT Benefits of Green Lane Policy MKD Procurement Priority in procurement of 100% MOF owned companies Financial Facility 2% interest rebate a year subject to maximum RM200,000 per year Stamp duty exemption on the loan agreement Tax Incentives Single deduction on cost related to certification fees for the first time Government Procurement Fast track registration of e-procurement Priority for Government Offset Programme Consideration to be listed in the Senarai Kontrak Pusat 16
OUTCOMES FROM THE 1-INNOCERT CERTIFICATIONS MARKET ACCESS ACCESS TO FINANCING 17
MARKET ACCESS GLC Contracts 7 Companies secured RM84 million from GLC contracts Sime Darby Contracts 10 Companies awarded Contracts valued at RM63.1 million PROTON Contracts 2 Companies awarded contracts valued at RM31.5 million Business Linkages Business Matching Sessions conducted between BAE Systems and 24 SMEs Business Linkages Business Matching Sessions conducted between Boeing and 51 SMEs Business Linkages Business Matching Sessions conducted between Boeing and 28 SMEs 18
ACCESS TO FINANCING Facilitation on access to financing Fast Track Approval DFIs and CGC to expedite loan processing EXIM Bank Provision of Fast Track Loan assistance for trade facilities overseas SME Bank Approved RM3.5 million Loan to 1-InnoCERT Companies Linkages with Banks and Venture Capitals Banks 5 Companies Venture Capitals 4 Companies 19
SUCCESS STORIES OF GREEN & INNOVATIVE SMES BIOFUSION SDN BHD TT BIOTECHNOLOGIES SDN BHD RETURN 2 GREEN SDN BHD JQ BIOTECH SDN BHD 20
BIOFUSION SDN BHD WINNER OF SME INNOVATION AWARD 2011: BIOTECHNOLOGY AND AGRO TECHNOLOGY SECTOR BioFusion Sdn Bhd is a wholly-owned Malaysian Company established to provide bioremediation services via in-house developed technology using concoction of locally isolated microbes. BioFusion EFB In-situ BioRemediation System was designed for to solve environmental problems of palm oil mill bio-waste and converting it to fertilizer. The system works in a complete and compact manner in which it uses mechanical machinery to physically break down the waste and adds in-house developed EM (from locally derived microbes as well as enzymatic additives) to catalyse the fermentation which helps to speed up the waste degradation process.. 21
TT BIOTECHNOLOGIES SDN BHD WINNER OF SME INNOVATION AWARD 2010: AGRICULTURE AND BIOTECHNOLOGYSECTOR TT Biotechnologies Sdn Bhd (TTBIO) is a company that does research and development in the biotechnology business especially in organic acids (lactic acid) and bioplastics (polylactide) development. It was incorporated in March 7th, 2006. TT Biotechnologies now commercializes its in-house research in the production of lactic acid and polylactide biodegradable plastics. This novel and innovative technology is produced from palm oil wastes and other palm resources. Due to its biodegradable nature the products creates less pollution. 22
RETURN 2 GREEN SDN BHD Return 2 Green Sdn Bhd has invented the 100% Biodegradable and Compostable Packaging Products made from Agricultural-waste; Sugar Cane Husks (Baggase), a Patented process. Their other inventions in the pipe-line are Paddy-Husks, Tapioca- Stems and Other Agricultural-Waste products! 23
JQ BIOTECH SDN BHD JQ Biotech Sdn Bhd manufactures and promotes bio-fertilizers that are based on metabolite from micro-organism culture process, and organic fertilizers that involves enzymes degradation process of organic waste, and chemical fertilizer. Its primary product offerings include Meta-OP and Meta-zyme. Meta-OP is a bio-fertilizer with locally isolated microorganisms designed to withstand local ecological condition, and Meta-zyme is a foliar fertilizer designed specifically to enhance the metabolic rate of plant cells, increasing the number of fruit bunch and size within a short period of time. 24
www.smeinfo.com.my THANK YOU www.smecorp.gov.my SME Annual Report 2010/11 SME Corp. Malaysia 1-300-30-6000 Physical KL Sentral 25