21 August 2009, Speech By YAB Tan Sri Dato' Muhyiddin Mohd Yassin Deputy Prime Minister Of Malaysia at The Launch of SME CORP Malaysia Logo & Signing Ceremony of Agreement to Lease Betwen SME Corp Malaysia & Malaysia Resources Corporation Berhad (MRCB)

Yang Berhormat Dato’ Mustapa Mohamed
Menteri Perdagangan Antarabangsa & Industri Yang Berhormat Menteri-menteri Kabinet

Yang Berbahagia Tan Sri Mohd Sidek Hassan
Ketua Setiausaha Negara

Yang Berbahagia Tan Sri Abdul Rahman Mamat
Ketua Setiausaha
Kementerian Perdagangan Antarabangsa & Industri

Ketua-ketua Setiausaha
Ketua-ketua Jabatan

Presiden Persatuan-persatuan Industri
Presiden Dewan-dewan Perdagangan

Excellencies Ambassadors

Tuan-tuan & Puan-puan

Assalamualaikum warakhmatullah hiwabarakatuh dan salam sejahtera!

Terlebih dahulu, saya ingin memanjangkan kesyukuran ke hadrat Allah swt kerana dengan limpah kurnia Nya dapat saya hadir di satu majlis yang gilang gemilang, yang bakal mencatat satu lagi sejarah di Negara ini, iaitu Majlis Pelancaran Logo SME Corp Malaysia dan Majlis Menandatangan Perjanjian Pajakan antara SME Corp Malaysia dengan MRCB. Secara peribadi, saya amat berbangga majlis ini menjadi kenyataan kerana perkara ini telah lama dirancang, ketika saya sendiri menjadi Menteri Perdagangan Antarabangsa dan Industri Malaysia.

2. Saya ingin mengambil kesempatan ini untuk mengucapkan terima kasih kepada YB Dato’ Mustapa Mohamed yang telah menjemput saya untuk melancarkan majlis yang penting ini, yang bakal akan menjadi satu detik sejarah penting di MITI. Tahniah saya ucapkan kepada Perbadanan Pembangunan Industri Kecil dan Sederhana (SMIDEC) yang pada 1 hb September akan beroperasi sebagai Perbadanan Pembangunan Perusahaan Kecil dan Sederhana, atau dikenali sebagai SME Corp Malaysia. Pemilihan nama SME Corp Malaysia dan logo SME Corp membawa kenangan manis dan erti yang besar kepada saya secara peribadi, kerana saya sendiri terlibat dalam proses pemilihan logo yang tuan-tuan dan puan-puan nanti-nantikan.

Ladies & Gentlemen,

3. While we are here to witness the launching of the SME Corp logo, let us also take this opportunity to reflect on the significance of rebranding of SMIDEC to SME Corp Malaysia and how this would impact on SME development at large. The significance of SME development in the country’s overall economic development cannot be over-emphasised. Without doubt, a strong, innovative and resilient SME community would provide the much-needed exponential growth trajectory for the nation.

4. SME development is even more critical now as Malaysia transforms itself in line with the New Economic Model that will primarily be based on innovation, creativity and human capital development. Indeed, we recognize that the endogenous growth of the country’s economy would be driven more by domestic companies, and specifically SMEs.

5. In this regard, the ability of Malaysian SMEs to compete and enjoy continued success in both the domestic and global markets will also depend significantly on their willingness to invest and continuously upgrade human capacity and capabilities. Our SMEs must be bold enough to benchmark against the best and strive towards upgrading their performance. This is especially pertinent in an increasingly competitive international business environment where growing expectations continue to be weighed against the elements of costs, quality, technology, efficiency and timeliness. It is thus imperative that SMEs are equipped with necessary skills, capability, technical know-how and best practices to remain relevant.

6. The Government recognizes that SMEs require assistance and facilities to do all these. And the Government has put in place a host of programmes to do just that. But what is more important in today’s highly competitive environment is to ensure that these programmes are effectively administered and reach the target groups. The time is right for us to do a stock-take and critical assessment of the effectiveness of these programmes.

7. Hence, the re-branding of SMIDEC into SME Corp Malaysia could not have come at a better time when not just Malaysia, but the whole world is faced with the both social and economic challenges. The development of SMEs cannot go on in a disconcerted manner. In fact, it was for this very reason that the National SME Development Council (NSDC), chaired by the Prime Minister of Malaysia, no less, decided to establish an SME Central Coordinating Agency, and SMIDEC was chosen to assume this function.

8. SME Corp’s role as ‘One Referral Centre’ will facilitate effective outreach programmes to SMEs through the provision of easier access to information, business and technical advisory services, coaching and guidance, including financial assistance and management services as well as upgrading of skills. I believe that the establishment of SME Corp Malaysia will assist the Government in coordinating SME policies and programmes, including financing options, that reside in 14 Ministeries and 60 agencies.

9. The establishment of SME Corp Malaysia is a manifestation of the Government’s strong commitment to ensure the coherent and comprehensive development of SMEs. To underscore the Government’s seriousness, the recent National SME Development Council meeting endorsed a proposal to adopt a new framework to closely track the implementation of programmes and undertake independent assessment using an outcome-based approach called the ‘Impact Analysis Framework of SME Programmes’. The Framework will measure the relationship between four common elements of SME programme implementation, namely INPUT, PROCESS, OUTPUT and OUTCOME.
I am confident that this outcome-based performance approach will shape the way in which businesses are steered to succeed in this highly competitive business environment.

Ladies and Gentlemen,

10. These challenging times present extraordinary opportunities and incentives for companies to innovate. l believe that this is an opportune time for SMEs to enhance capacities and capabilities by retooling their business models, redefining business strategies, ensuring workers are equipped with new skill sets, adopting new technology, as well as venturing into new and emerging markets.

11. In addition, the ongoing liberalization initiatives in the services sector offer possibilities for SMEs to access new and untapped markets. This strategic approach not only allows SMEs to manage the current challenges, but ultimately strengthens their long-term competitiveness as well as re-position SMEs to pursue greater heights of success.

12. SME Corp Malaysia has a very significant role in ensuring that businesses continue to succeed in this evolving economic scenario. Managing the change from a manufacturing-centric organization to one that coordinates programmes, policies and incentives across all economic sectors is a challenge in itself. When the economy recovers, l would not expect that things will return to normal – a different style of leadership will be required to steer the organization as it undertakes its new role of being the SME Central Coordinating Agency.

13. It is most important that the person tasked to lead the organization is able to apprehend the tasks at hand, and be equipped with excellent skills that would enable him/her to exercise from the position of command - analytical problem solving capabilities, crisp decision making ability and be able to articulate and steer the organization toeards its ascribed goals.

14. With those qualities in mind, l wish to announce that the Government of Malaysia has agreed to appoint Yang Berbahagia Dato’ Hafsah Hashim as the Chief Executive Officer of SME Corp Malaysia and she will report to Yang Berbahagia Datuk Ir. Mohamed Al Amin Haji Abdul Majid who is appointed as the Chairman of the organization. I would like to take this opportunity to congratulate both the CEO and the Chairman of SME Corp Malaysia and l have every confidence that they will continue the strife, to better serve the SMEs, especially in these trying times. l hope that under their able leadership, SME Corp will continue the good work of SMIDEC.

15. I would also like to take this opportunity to congratulate the management of SMIDEC for the launch of the SME Corp Malaysia logo, which will bring with it attributes of the organization, which is dynamism, innovation and competitiveness. As l mentioned earlier, l have a personal attachment to SMIDEC/SME Corp Malaysia. l have watched the organization grow from strength to strength; from a mere 61 employees when they were first established to now, 328 employees. Along with this increase in staff, one can definitely expect SMIDEC’s programmes and activities to also grow in complexity, reach and range. As we have heard from YB Dato Mustapa’s speech, many of us here can attest to SMIDEC’s high impact and innovative programmes that have supported the growth of SMEs particularly those in the manufacturing sector. It is no surprise to me that SMIDEC was chosen to be the central coordinating body for all programmes and activities related to SME development.

16. Congratulations are also in order to SME Corp for being able to move to a building that we hope will ultimately be yours. As we have heard from YB Dato Mustapa, l am happy to note that SME Corp office is easily accessible from any point - by air, rail and road. I note that it is one of the first energy efficient, environment friendly buildings in the country.

17. On that note, and in the name of Allah swt the Most Passionate, The Most Merciful, l now launch the SME Corp Malaysia logo and l pray that the Al Mighty will provide the guidance and wisdom to the management of SME Corp Malaysia in their quest to steer and support the SME community to greater success!

Thank you and Congratulations!