Go global for more opportunities, Zahid tells SMEs

KUALA LUMPUR: A Global Business Match Making Network for small medium enterprise (SME) must be set up to ensure the success of its internalisation process.
Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said the network must be able to perform match making in the new market information, technology and innovation, financing and human capital.
"Earlier this year, Malaysia launched a similar but smaller network called the Asean Market Place.
"It features a robust directory of Asean SME's to help catalyse strategic partnerships, and foster business relationships within the Asean communities," Zahid said during his opening speech at the 2015 World Islamic Economic Forum Foundation (WIEF2015) held at Kuala Lumpur Convention Center here.
Zahid added internalisation of SMEs would open up more opportunities for resources such as investment, innovation and diversification.
"Research suggests that SMEs with greater internalisation tend to report higher turnover growth, and to demonstrate higher employment growth," Zahid said, adding that even SMEs that are designed to serve the domestic market should have a global perspective on their business.
He said SMEs had contributed 95% of total establishments across Asean.
"They generate about 50% to 85% of total domestic employment.
"In addition, SMEs also make significant contribution to the GDP, where it has accounted 20% to 50% across Asean," Zahid said.
Zahid stressed that Asean SMEs must develop its capabilities to meet the current economic challenges.
"In essence, SME sector needs to build their own resilience.
"This is a prerequisite to survive, and to emerge stronger in today's highly globalised, interconnected business and economic landscape," Zahid said.