Chaired by YAB Prime Minister, the NSDC is the highest policy-making body for the development of SMEs in Malaysia.
Established in 2004, the NSDC’s main goal is to ensure the comprehensive and coordinated development of SMEs across all sectors. The Council members comprise 13 Ministers as well as the Chief Secretary to the Government, the Director-General of Economic Planning Unit (EPU) and the Governor of Bank Negara Malaysia (BNM).
Among the strategic functions of the Council are to:
• Formulate broad policies and strategies to facilitate the overall development of SMEs across all sectors;
• Review the roles and responsibilities of the M&As tasked with SME development;
• Enhance cooperation and coordination of programmes to ensure effective implementation of SME development policies and action plans;
• Encourage and strengthen the role of the private sector in supporting the overall development of SMEs; and
• Emphasise the development of Bumiputera SMEs across all sectors of the economy.
Based on the SME Masterplan 2013/2014 report, the NSDC has made significant inroads in shaping the growth of SMEs in Malaysia.
Among the achievements are:
• Setting a common definition for SME (2004) and redefinition (2014);
• Establishing a periodic census for statistical updates;
• Crafting the SME Development Framework and the SME Masterplan and SME Act framework;
• Establishing a Central Coordinating Agency (CCA) as a platform to gather latest information and monitor the SME programmes by the M&As;
• Ensuring centralised trainings for parties involved in SME development;
• Initiating regular reporting on the outlook for SME development via the SME Annual Report and SMEIPA publications;
• Introducing new financial products including micro financing and guarantees; and
• Strategising a financial infrastructure such as the SME Credit Bureau, Small Debt Resolution Scheme (SDRS) and transformation of developmental financial institutions (DFIs).
These positive developments affirm the NSDC’s strategy for SME development in the country. The comprehensive and structured approach adopted has been instrumental in driving the performance of SMEs and empowering them to achieve their potential.