Bernama.com (Malaysian National News Agency), 14 March, 2007
Many M'sian SMEs Experiencing Their Best Times Ever
By M. Saraswathi and Ahmad Farizal Hajat
KUALA LUMPUR, March 14 (Bernama) -- Malaysian small and medium enterprises, from the conventional food and construction industry players to animation and biotechnology industries, are reaping the benefits from the country's improved economic prosperity seen in recent years.
These enterprises are experiencing perhaps their best times ever, thanks to the continued economic growth in the last few years and the government's pro-business policy that had provided them with opportunities to venture further afield.
"Business is very good, especially for the past few years. The government's focus on SMEs has been timely," said Perusahaan Azan Sdn Bhd's managing director Mohd Ghazali Abu Bakar.
His company, which is engaged in food products, is currently expanding to cater for the flourishing local and export markets.
The company exports mainly bread to Indonesia and Hong Kong.
"Our initial investment was only RM4 million, now we are in the process of putting another RM6 million to expand our business," he told Bernama.
Mohd Ghazali owes his successful business to the assistance provided by government agencies like the Malaysia External Trade Development Corporation (Matrade), which opened the doors for him to enter export markets.
"They (Matrade) usually identify potential business partners and arrange for business matching during trade missions," he said.
Bio Neutraceutical (M) Sdn Bhd, a producer of wholesome functional foods under the brand name of Nufera, is also riding on the strong emphasis given by the government on biotechnology.
Commending the government for stressing the importance of biotech as one of the key pillars for the Malaysian economy, its chief executive officer Muhammad Sufi Mahbub said this has stimulated greater interest for biohealthcare-related products.
"Malaysians are now more aware, and from the wellness industry's perspective, we can see more demand for the biohealthcare-related products rather than drug-based products," he said.
His company's product comes from biotechnologically processed virgin coconut oil (processed without heat or chemicals) that can be used in daily consumption, beauty treatment and general health management without any side effects.
Muhammad Sufi hopes that the government will lend additional support to local biotech companies to further improve their research and development activities (R&D).
Under the Ninth Malaysia Plan, the government has allocated RM2 billion for both research and development and industry development for the biotechnology and life sciences industries.
"Our effort is to harness biotechnology in neutraceutical, which is growing in Malaysia, especially in the production of herb-based products," he said.
Another beneficiary of the government's pro-business policy is Centraline Animation Sdn Bhd, which has seen improving opportunities to make money.
"We get good support from the government," said its executive chairman, Damien Leong.
According to an estimate by Multimedia Development Corporation (MDeC) the worldwide market for animation industry stands at US$600 billion.
The government, Leong said, recognised the huge demand for this industry and the available massive market for animation.
These, he said, could be seen from the financial support, including grants offered by government agencies like MDeC and MATRADE.
"They also help to promote the industry and our products overseas," he said.
However, he noted that there was still room for improvement, especially in creating more awareness among local banking officials.
Leong claimed that local banks were still not forthcoming in lending to animation companies as they were more focused on tangible products or industries.
"There is still a lack of understanding of the software-related market," he said.
Noting that animators in countries like Japan, South Korea and India find it easier to raise capital from the banking sector, he added: "We don't want to depend on government grants alone, we want to grow the business."
V.M. Samy, managing director of Sri MS Development Sdn Bhd, a new player in the construction business, also feels that there is good growth in the local property development scene.
"We are small-time developers but we see good demand for our projects," he said.
MS Development is currently involved in a mixed property development in Karak, Bentong, consisting of 87 units of houses and shoplots.
Amid the increasing optimism, both Leong and Mohd Ghazali are looking forward for more support for Malaysian entrepreneurs in the domestic market.
Mohd Ghazali said that although his company has expanded overseas, it also wanted to be stronger in the domestic market.
As for Leong, he said there should be greater emphasis and enforcement on local content and local television stations should be asked to broadcast between 60 and 80 percent local animation programmes.
"(In this way) we should get more locally-produced animation series on air," he added.
-- BERNAMA
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