“Measures taken over the last few years by the authorities, through the creation of guarantee funds for SME financing, did not have the expected results. SMEs keep highlighting that the question of access to credit is still a major issue for them,” states a document from the employment union FEC published by Ecofin news agency.

In order to ease SME’s access to credit in Algeria, the union in April 2012 called for the creation of banking institutions dedicated to SME financing.
It asked the Algerian state to create a specialised investment bank with a capital of $10 billion (€7.4 billion), open to private and institutional shareholding and possibly foreign investors.

The FEC also called for the strengthening of existing support services for SME financing as well as the creation of several specialised banks, as there is not a single bank currently dedicated to SME financing in Algeria.

A few months earlier, the Organising and Monitoring Securities Commission, with support from the United Nations Development Programme, announced measures will be introduced to modernise and boost the Algerian stock market and increase access to finance for businesses.

Mustapha Ferfera, Director of the Alger stock exchange, told La Tribune newspaper that requirements to enter the stock market will be relaxed for SMEs, with the creation a dedicated structure for these companies, which will be operational in 2012.

He explained that the Organic Labor Law will have a “very strong” impact on Venezuelan companies. “Obviously, retroactivity (of severance payments) will have a very strong impact; (Venezuelan) businesses will be hardly hit,” Pérez Vigil said during a forum on labor relations organized by Conindustria on May2012.

The industrial leader added that it is difficult to estimate the cost of retroactivity for all Venezuelan companies, as it depends on the sector they operate or their number of workers. However, he stated that the impact will be significant, particularly for Small and Medium-sized Enterprises (SMEs)
Pérez Vigil explained that SMEs have little financial muscle and will have to borrow to pay workers social benefits.

Potential sales were recorded for various products including protective clothing for oil and gas workers, processed food and jewellery while in the services sector, sales were reported for IT surveillance system, tourism and training programmes, said the Malaysia External Trade Development Corporation (Matrade) on May 2012. The corporation said the 1Malaysia Promotion, officiated by International Trade and Industry Minister Datuk Seri Mustapa Mohamed was intended to introduce the diversity of Malaysian economic sectors to Oman and the Gulf Cooperation Council (GCC) countries.

Considering that Oman was a relatively new market among the GCC countries, the sales recorded by participating Malaysian companies indicated that there were abundant potential to be explored in the country, Matrade said in a statement.

Two memoranda of understanding were exchanged during the promotion involving the distribution of Malaysian-made products in Oman and collaboration in capacity building for the Omani people.

The 1Malaysia Promotion was the first of its kind organised by Matrade abroad, involving nine ministries and agencies as well as 28 companies representing various sectors, among them construction, healthcare, ICT, education, tourism and halal. Matrade urged Malaysian companies to follow up on and to intensify their own marketing and brand awareness in Oman to take advantage of the enhanced perception of Malaysia created by the promotion.

The event was sponsored by the World Bank together with the Ministry of Finance Kazakhstan. Instructors were Andrei Busuioc (Financial Management Specialist, CFRR, World Bank) and Michael Wells (Director, IFRS Education Initiative, IASB). The workshop was conducted in the Russian-language (with simultaneous translation from the English-language for one of the presenters).

More information about past workshops, including free download of the Microsoft PowerPoint® slides used in the workshops, can be found here: http://www.ifrs.org/IFRS+for+SMEs/SME+Workshops.htm

The Eurobarometer survey also reveals other sources of untapped potential which could be used by SMEs. For example, less than a quarter of SMEs take advantage of the single market for green products or services. Bureaucracy is considered as one of the obstacles: 20% of SMEs says that it would be easier to do green investments if cross-border administrative and legal procedures were not so complex.

SMEs in green industries are also maturing. Three in five (61%) SMEs selling green products or services have been active in green markets for more than three years compared to 52% in the US. Food and beverages (25%) and electronic and mechanical machinery and equipment (23%) are the most commonly sold green products and services by SMEs in the EU. The full report on the Eurobarometer survey on “SMEs, resource efficiency and green markets”

Green SMEs: Strong at home, but weak abroad.
Green markets for SMEs in the EU remain mainly domestic. 87% of SMEs involved in green business (or the green economy) operate in their national markets. Just below a quarter of SMEs report that they exploit the opportunities of the Single Market. With BRIC countries (Brazil, Russia, India and China) estimated to account for about 60% of world GDP by 2030, only 3% of SMEs in the EU adventure themselves to sell their green products or services in Asia and the South Pacific and a mere 2% in Latin America.

Customer demand plays a major role According to the Eurobarometer survey, the main reason for SMEs in the EU to sell green products or services is demand from customers (48%). Companies’ core values (32%) and image (30%) also play a role in this respect.

SMEs reduce energy and resources consumption 93% of EU SMEs take actions to be more resource efficient. 64% of SMEs save energy, 61% recycle and 62% minimise their waste. 33% of SMEs improve resource efficiency as a top priority.

Policy measures can help unleash the ‘green growth engine’.
Financial incentives are considered by SMEs as the best means to help them become greener in the way they operate and the products and services they offer. Approximately half (51%) of SMEs consider tax rebates, grants and loans as the best policy measures to support energy efficiency investments.

Approximately half (49%) of the SMEs that are already offering green products indicate that financial incentives for developing products would be the best way to help the expansion of their range of green products or services. 31% of the SMEs that are currently not offering green products and services believe that financial incentives would be the best way to help them launch a range of green products or services.

Administrative simplification would boost green products.

Technical advice and administrative simplification are also considered to be very effective in helping SMEs to be greener. In the next two years, four SMEs in five (80%) plan to implement resource efficiency actions but one in five SMEs says that it would be easier if administrative and legal procedures were not so complex or the costs of taking actions would be lower. One in four (25%) SMEs say that simplifying administrative procedures for constructing cogeneration capacity such as installing solar panels would be particularly effective to boost energy efficiency. More information on energy service contracts and options to save energy would also help one in four (24%) SMEs to reduce their energy bill. Around one in five SMEs currently who do not offer green products and services say some assistance in identifying potential markets or customers for green products or services could make consider entering green markets.

Green public procurement still a challenge.

Green public procurement as a driver for a more sustainable economy is still a challenge for SMEs. According to available data, only 11% of SMEs in the EU have bid for a public procurement tender that included environmental requirements compared with 16% of large companies.

Background
The Flash Eurobarometer 342 survey “SMEs, resource efficiency and green markets” was carried out between the 24th of January and the 10th of February 2012 by TNS Political & Social. It was conducted in the 27 EU Member States and in Albania, Croatia, Iceland, Liechtenstein, the former Yugoslav Republic of Macedonia, Montenegro, Norway, the Republic of Serbia, Turkey, Israel and the United States. It is a survey that covers businesses employing 1 or more persons in the Manufacturing (Nace category C), Retail (Nace category G), Services (Nace categories I/J/K/H/L/M/) and Industry (Nace categories B/D/E/F) sectors within the European Union. It does not cover sole traders.

Seven of the companies are new while the rest are existing investors seeking opportunities to expand and diversify their existing operations, mainly in the manufacturing sector.

Song Sung Ho, Vice President of South Korea’s Small & Medium Business Corporation (SBC) on May 15, 2012 said they had expressed keen interest to relocate their businesses from not only Korea but also from other countries in the region to Malaysia to support the big companies such as Samsung and Hyundai.

“Besides that, the potential Korean investors are interested to develop industrial and logistics hubs in Malaysia for exporting overseas,” he said after a seminar on “Business Opportunities in Malaysia” jointly hosted by the SBC and the Malaysian Investment Development Authority (MIDA) here Tuesday.

He said although China and Vietnam would have been the most preferred markets, their focus for a highly sought-after investment destination had shifted to Malaysia due to its political stability and security, resilient economy, population mix and modern and friendly investment environment.

According to a report by SME Magazine, the average revenue of the country’s top 100 SMEs this year is RM11.2 million, with median revenue of RM8.6 million.

The SME 100 report also shows that revenue grew by 9.8 per cent last year for the top 100 companies, while revenues are projected to grow between 10 and 150 per cent for the current year.

This is in stark contrast to the five per cent gross domestic product (GDP) growth projected by the government for this year.

“Whilst many are already feeling the effects of declining consumer confidence, SMEs in Malaysia remain bullish about the economy,” SME Magazine group publisher and editor-in-chief William Ng said.

Ng, in a statement, said a total 280 companies responded to the programme, with the top 100 selected among the respondents based on both quantitative and qualitative criteria.

The quantitative criteria included revenue and profit growth, assets, export sales and investment in capital, training and research and development (R&D).

The qualitative criteria, meanwhile, included business outlook, innovations, market share, IT usage, corporate social responsibility, training, R&D efforts and others.

“Companies are listed according to their respective industry groupings,” Ng said.

Among those on the list are Naza Trutti Frutti (Malaysia) Sdn Bhd, Legasi Ulung Sdn Bhd, Mavisco (M) Sdn Bhd, and Tech-Lab Manufacturing Sdn Bhd. Others include Lord’s Tailor Sdn Bhd, Music Valley Sdn Bhd, Noor Arfa Holdings Sdn Bhd, Skynet Worldwide (M) Sdn Bhd and Vista Laser Center Sdn Bhd.

Moving forward, Ng said, what most SMEs would need was better access to financing, technology and talents.

Among the government’s facilities available to the SMEs are a RM2 billion syariah-compliant SME Financing Fund, a RM500 Commercialisation Innovation Fund and a RM100 million SME Revitalisation Fund.

SME Magazine has been in publication since 2007 and its circulation has reached 46,000 a month. The magazine is published by Business Media International, Southeast Asia’s largest B2B publishers.

Read more: SMEs on the path to further growth http://www.btimes.com.my/Current_News/BTIMES/articles/SME100/Article/index_html#ixzz1fdlJzKRy

Recently, Nissan Motor’s arch operations officer Toshiyuki Shiga pronounced that a association was targeting to boost in a ratio of alien automobile tools from a stream 20 per cent to about 40 per cent for trade vehicles that accounted for 60 per cent of a domestic production.

However, in Asia, internal buying now accounted for 70 per cent in some models and Nissan designed to lift this to 90 per cent or higher.

The comments by Nissan Motor deserved critical care as a stream clever yen was badly inspiring a export-dependent automobile sales.

Matrade settled in a media recover that a stream accessible sourroundings towards abroad sourced automotive tools represented a vital event for Malaysian automotive tools manufacturers to form alliances and partnerships with Japanese Tier 1, 2 and 3 vendors in sequence to win new business in a remunerative though severe Japanese automotive tools sector.

As such, it was intensely critical for a Malaysian automotive tools attention as a physique to rigorously commence and proclaim a postulated ‘We are here’ debate towards a Japanese automotive attention by participating in trade shows and organising sales missions.

In doing so, Matrade suggested Malaysian automotive tools manufacturers that a pivotal summary of such a debate would be to strengthen a peculiarity and trustworthiness of Malaysian made tools as peculiarity stays a pivotal requirement of Japanese companies .

Interest in Malaysian calm had already been filed during Matrade many vital players for products such as aluminium diecast parts, foundry, steel stamping parts, cosmetic injection tools and so on.

Source: theBorneoPost.com

“We are hoping to double our market share over the next three years,” said general manager for SME banking, Standard Chartered Malaysia, Vishal Shah.

Vishal declined to reveal StanChart Malaysia’s market share at the moment, saying that since SMEs cover a wide range of industries, it is hard to interpret an exact figure.

“However, over the past three years we have seen high double-digit growth, between 17% and 18%, for our SME business. This is in terms of revenue and customer balances. So going forward, we are aiming to maintain that level of growth,” said Vishal.

Globally, the SME market is seen as an increasingly important contributor to StanChart Malaysia.

“Between 24% and 30% of StanChart’s consumer banking revenue comes from the SME segment,” said the global head for SME banking, Standard Chartered Bank, Som Subroto.

“Our ambition is to be the leading international bank for SMEs, building the segment into a multi-billion dollar business over the next three to four years.”

Vishal and Som were speaking to reporters after the launch of StanChart Malaysia’s new SME offerings.

Som said StanChart Malaysia’s new SME offerings comprise the best of the solutions for both its retail and corporate segments. Each SME product offers a dedicated relationship backed by a team of specialists and provides easy access to financial services after having invested significantly in infrastructure.

“Our strengthened customer offering is timely in view of the government’s rising interest in spurring the development of a more diverse, competitive and high-growth SME sector,” said Vishal.

According to reports, SMEs comprise 56% of Malaysia’s total workforce and contribute 31% to the country’s GDP.

On whether the current global uncertainty would have an impact on SME activity, Vishal said, “There is no doubt that there will be some impact. However, we are cautiously optimistic for the coming year.”

This article appeared in The Edge Financial Daily, December 1, 2011.

In a statement, SMECorp Malaysia said as the new role would bring along new challenges which include liberalisation measures in the services sector, there was need for a new approach to SME development to accelerate the growth of SMEs.

It said in this regard, under the government’s SME Masterplan, it would chart the policy direction for SMEs through the year 2020 by creating a conducive ecosystem for SMEs to thrive and transform domestic SMEs to be globally competitive.

Along with the effort, SMECorp recently released the Small and Medium Enterprises Annual Report 2010/11 at the 12th meeting of the National SME Development Council.

The report was officially released by Prime Minister Datuk Seri Najib Tun Razak on Wednesday, November 23.

“The report is one of the significant initiatives of the council aimed at providing the current assessment on the performance of SMEs and the SME development programmes during the year,” SME Corp said.

The report which released new time series data on employment and productivity showed that the favourable growth performance of SMEs was accompanied by gains in productivity.

“For the seventh consecutive year, the growth was higher than the overall gross domestic product (GDP) growth, hence resulting in SME contribution to GDP to increase from 28.1 per cent in 2003 to 31.9 per cent in 2010,” it added.

SMECorp said the report incorporated inputs from the ministries and agencies involved in SME development across all economic sectors.

The report is available in both English and Bahasa Malaysia and accessible online via the SME Corp’s website (www.smecorp.gov.my) and SME Info Portal (www.smeinfo.com.my).

– BERNAMA