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Small and medium enterprises in Malaysia : policy issues and challenges
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Aldershot : Ashgate, 1999


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30000005170075 HD2341 M63 1999 Open Access Book Advance Management

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The strategic significance of small and medium enterprises (SMEs) in national development is widely recognized, in both developed and developing countries, and Malaysia is no exception. SMEs account for almost 90 per cent of the total number of establishments. The essential roles that SMEs play in the overall economic development are the ability to employ more workers, their positive impact on income distribution - serving as a pool for developing skills for industrial workers and entrepreneurs - and their complementary role to large and multinational companies. They are increasingly becoming a key component in the strategy towards strengthening the country's industrial base. Substantial public sector resources have been directed at promoting SMEs development.

Table of Contents

List of Figuresp. ix
List of Mapsp. x
List of Tablesp. xi
Prefacep. xiii
List of Abbreviationsp. xvii
Chapter 1 Introductionp. 1
Introductionp. 1
Current Economic Development in Malaysiap. 5
The Demand for Work Forcep. 10
Definition of Small and Medium Enterprises (SMEs)p. 22
A General Review of Small and Medium Enterprises in Malaysiap. 24
The Important Role of Small and Medium Enterprises in Malaysiap. 31
Conclusionp. 33
Chapter 2 Policy Supports for Small and Medium Enterprises in Developing Countries: Rationale and Practicep. 35
Introductionp. 35
The Conceptual Approaches Underlying Policy Supports for Small and Medium Enterprisesp. 35
The Rationale for Policy Promotionsp. 47
Specific Assistance Activities for Small and Medium Enterprises in Developing Countriesp. 48
The Existing Policy Support Programmes for Small and Medium Enterprises in Malaysiap. 56
Chapter 3 Financial and Credit Assistancep. 59
Introductionp. 59
Commercial Banksp. 59
The Finance Companiesp. 60
The Merchant Banksp. 60
The Development Finance Institutions (DFIs)p. 61
Chapter 4 Entrepreneurial Development and Business Management Trainingp. 72
Introductionp. 72
National Productivity Corporation (NPC)p. 73
Malaysian Entrepreneurial Development Centre (MEDEC)p. 76
The Majlis Amanah Rakyat (MARA)p. 78
Small Business Development Centre (SBDC), Universiti Putra Malaysia (UPM)p. 81
Federation of Malaysian Manufacturers (FMM)p. 83
Malaysian Agricultural Research and Development Institute (MARDI)p. 86
Small and Medium Industries Development Corporation (SMIDEC)p. 88
Chapter 5 Human Resources Development, Technical and Vocational Programmesp. 93
Introductionp. 93
Human Resources Development Programmep. 94
Small and Medium Industries Development Corporation (SMIDEC)p. 99
Centre for Instructor and Advanced Skill Training (CIAST)p. 101
Industrial Training Institutes (ITIs)p. 103
Forest Research Institute of Malaysia (FRIM)p. 104
Standards and Industrial Research Institute of Malaysia (SIRIM)p. 105
Malaysian Technology Development Corporation (MTDC)p. 109
Malaysian Institute of Microelectronics System (MIMOS)p. 111
Malaysian Science and Technology Information Centre (MASTIC)p. 115
Malaysia External Trade Development Corporation (MATRADE)p. 117
Youth Training Centre (YTC)p. 120
Vocational Schoolsp. 120
Polytechnicsp. 121
Higher and Tertiary Education Institutesp. 122
Chapter 6 Location and Infrastructure Facilitiesp. 123
Introductionp. 123
Malaysian Industrial Estate Limited (MIEL)p. 125
Urban Development Corporation (UDC)p. 128
The Council of Trust for Indigenous People (TCTIP)p. 128
Technology Park Malaysia (TPM)p. 129
Othersp. 133
Chapter 7 Fiscal Policy and Incentives for SMEsp. 134
Introductionp. 134
General Incentivesp. 134
Incentives for Exportsp. 139
Incentives for Research and Developmentp. 141
Incentives for Trainingp. 141
Tariff Protectionp. 142
Customs Duty Exemptionp. 142
Double Taxation Agreementsp. 143
Tax Spring Provisionp. 144
Othersp. 144
Chapter 8 The Accessibility of Support Programmes for SMEsp. 147
Introductionp. 147
Case Study Onep. 148
Case Study Twop. 168
Conclusionp. 175
Chapter 9 Conclusions and Recommendationsp. 179
Concluding Remarksp. 179
Issues and Challengesp. 181
Policy Recommendationsp. 183
Appendix Ip. 188
Appendix IIp. 203
Appendix IIIp. 210
Bibliographyp. 215
Indexp. 228