Malaysian Technology Development Corporation (MTDC) and SME Corporation Malaysia (SME Corp) have exchanged a MoU to collaborate and build partnerships to foster the entrepreneurial growth of Malaysian SMEs.
This marks a significant step forward as the strategic partnership aims to leverage the strengths of both parties to establish networks that aspire entrepreneurs, and access to technologies while, helping them to navigate challenges, expand their market reach through exports and succeed in their ventures.
Under this partnership, MTDC and SME Corp will work closely to develop a symbiotic relationship and platforms, share valuable business insights, and create comprehensive programs to enhance the competitiveness and innovation of Malaysian entrepreneurs.
This collaboration signifies a commitment to encourage the adoption of appropriate technologies and support for SMEs to elevate their presence both locally and abroad.
SMEs form the cornerstone of Malaysia’s economy, constituting 97.4% of all business entities. They contribute 38.4% of the nation’s Gross Domestic Product (GDP) and are responsible for employing over 7.5 million individuals.
However, Malaysian SMEs only recorded about 10.5% in the export market in 2022 according to the Department of Statistics Malaysia (DOSM).
Through this collaboration, a new programme called ‘Transforming SMEs into Exporters (TSMEX)’ will be introduced to support and prepare more local SMEs to expand their businesses abroad through exporting. The two-phase programme will involve a series of training sessions, workshops, advisory and handholding activities.
Ts. Hj Mohammad Hazani Hj Hassan, CEO of MTDC said, “This renewed partnership with SME Corp. will further strengthen our collaboration and leverage our expertise in nurturing and supporting technology-driven enterprises.
“By combining our resources and expertise, we can provide a robust platform for SMEs to thrive in the ever-changing market and prepare our local SMEs for the export opportunity.”
Rizal Nainy, CEO of SME Corp. Malaysia said, “Through targeted training initiatives and strategic guidance under Transforming SMEs into Exporters (TSMEX) programme, SMEs stand to benefit from the wealth of knowledge and experience that MTDC brings to the table.
“This collaborative effort underscores a commitment to empowering SMEs, providing them with valuable resources to navigate the complexities of international trade, ultimately contributing to their growth and success in the global market.”
The TSMEX programme, which will be curated and executed by MTDC’s training academy, Technopreneur Training Academy (TENTRA) will begin with a seven-day training programme for 300 companies. These SMEs will be able to gain useful knowledge and a deep understanding of the best exporting processes and practices.
Following completion of the seven-day training, 30 potential SME’s will be carefully selected by MTDC and SME Corp to be enrolled in a three-month intensive programme, where they will be trained by industry experts and professionals to help them develop their exports plan and strategies.
The selection criteria for SMEs to participate in the TSMEX programme requires that they have been in operation for more than 6 months, are registered under Suruhanjaya Syarikat Malaysia (SSM), have at least 60% equity Malaysian ownership and have a minimum annual sales turnover of RM300,000.
The programme will begin in January 2024 with selected participants, followed by the training session, and is expected to conclude by September 2024.
Both MTDC and SME Corp said they are dedicated towards making a tangible impact on the Malaysian entrepreneurial landscape, to drive forward the nation’s economic growth.
MTDC will also continue to leverage its over three decades of experience in nurturing tech ventures as a strategic partner for technology enterprises. This includes its notable successes for numerous Malaysian companies to achieve significant market capitalisations and international listings.
Hazani attributed the funding of five of their ecosystem companies, namely 3D Gens Sdn Bhd, Recove Sdn Bhd, Novapave Sdn Bhd, Ginger and Coconut Sdn Bhd and Deligateaux Sdn Bhd, by SME Corp to the close collaboration of MTDC and SME Corp. The event also saw four companies showcasing their products and services.