On 2 November 2018, the Government announced Budget 2019 with total allocation amounting to RM314.55 billion, which is 12.2% higher compared to Budget 2018 (RM280.25 billion). With the theme “A Resurgent Malaysia, A Dynamic Economy, A Prosperous Society”, Budget 2019 highlighted 3 main focus and 12 key strategies in strengthening Malaysia’s economic position.
A total of RM17.94 billion has been earmarked for SME development in 2019 under the Third Focus: To Foster an Entrepreneurial Economy. Among the key initiatives include financing, Industry 4.0, export, tourism, agriculture, entrepreneurship, human capital development and incentives.
SME Corp. Malaysia commended the 2019 Budget for its broad-based approach and being very supportive of SMEs as the vital engine of growth for the national economy. The SME development allocation in the Budget next year is very much welcomed as a further boost, especially in the areas of access to financing which will continue to be given an important emphasis, export promotion, entrepreneurship and various programmes under the SME Masterplan.
Based on the SME Input-Output analysis done by SME Corp. Malaysia, the estimated allocation of RM17.94 billion for SME development across all economic sectors is expected to generate an additional RM3.8 billion of SME value-added in year 2019, which is an increase of 0.3 percentage point in share of SME GDP to total GDP.
For the record, according to the SME Annual Report 2017/18 released by SME Corp. Malaysia, SMEs contributed RM435.1 billion to the economy in 2017, with a higher GDP growth of 7.2% against 5.2% in 2016. As a result, contribution of SMEs to GDP stands at 37.1% in 2017, with overall employment at 66% and total exports at 17.3%.
This year, a total of 158 SME development programmes are being implemented for the benefit of SMEs, with total financial commitment of RM14.3 billion.