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ASSIGNMENT
SYAZWANI BINTI MOHAMAD NAZRI
CONTENTS OF THIS TEMPLATE
Briefly describe the following details:
a) Definition of SMEs.
DEFINITION OF SME
DEFINITION OF SME
SME is an abbreviation for small and medium-sized enterprises
Its definition is determined by two factors, *Sales turnover and *Number of full-time employees
• For the manufacturing sector: SMEs are defined as firms with sales turnover not exceeding
RM50 million OR number of full-time employees not exceeding 200.
• For the services and other sectors, SMEs are defined as firms with sales turnover not
exceeding RM20 million OR number of full-time employees not exceeding 75.
* Sales turnover refers to total revenue including other incomes. Full-time employees include all paid workers working for at least 6 hours
a day and 20 days a month; or at least 120 hours a month.
DEFINITION OF SME
● Manufacturing’ refers to physical or chemical transformation of materials or components into new
products.
● ‘Services’ refer to all services including distributive trade; hotels and restaurants; business,
professional and ICT services; private education and health; entertainment; financial intermediation;
and manufacturing-related services such as research and development (R&D), logistics, warehouse,
engineering etc.
● Other sectors:
○ Primary Agriculture – Perennial crops, cash crops , livestock, marine fishing
○ Construction
○ Mining & quarrying
• Subsidiaries of:
• Publicly-listed companies on the main board;
• Multinational corporations (MNCs);
• Government-linked companies (GLCs);
• Syarikat Menteri Kewangan Diperbadankan (MKDs); and
• State-owned enterprises.
• As a result, many SMEs started raising prices on goods and services or laying
workers.
CHALLENGES FACING SME’S
• Most SMEs has difficulty to attract new customers due to the market competition.
• Some customers prefer products or services from big companies or international companies in the
same industries
• There are also some who choose to buy goods from lower cost producing countries like China
• Although SMEs can rarely compete on price with larger competitors, but it can instead focus on
quality, value and service to attract customer
CHALLENGES FACING SME’S
• SMEs is losing skilled workforce to competitors, especially the bigger ones in the
same industries.
• Most employees prefer larger firms as it can promise bigger salary, personal
growth and career stability.
• Even so, SMEs can establish a good company culture and provide other benefits,
such as healthcare, childcare, and remote work options to attract workers.
03
SOURCES OF FUNDING BY
THE GOVERNMENT
SOURCES OF FUNDING
BY THE
GOVERNMENT
1 2 3
Small Medium BNM’s (Bank Negara Government Funds
Enterprise Malaysia) Fund for • Product Transformation
Development Bank SMEs Program (PUTRA)
Malaysia Berhad • Bumiputera Enterprise
Enhancement Programme
(SME BANK) (BEEP)
• Program Sokongan
Pengukuhan Keusahawanan
Luar Bandar (SPKLB)
REFERENCES
1. SME Corp. Malaysia. (2020). SME definitions. SME Corporation Malaysia. Retrieved
February 28, 2023, from
https://www.smecorp.gov.my/index.php/en/policies/2020-02-11-08-01-24/sme-definition
2. Odebunmi, O. (2023, February 28). The biggest challenges smes face and how to
overcome them in 2022. Port Cities. Retrieved February 28, 2023, from
https://portcities.net/blog/latest-news-from-odoo-port-cities-2/post/the-biggest-challenges
-smes-face-and-how-to-overcome-them-51
3. Bank Negara Malaysia. (2022). Financing for Small & Medium Enterprises. Financing for
Small and Medium Enterprises (SMEs) - Bank Negara Malaysia. Retrieved March 1,
2023, from https://www.bnm.gov.my/sme-financing
4. SME Corp. Malaysia. (n.d.). Relief measure for smes affected by covid-19. SMEinfo
Portal. Retrieved March 1, 2023, from
https://www.smeinfo.com.my/reliefmeasures/relief-measures-for-smes-affected-by-covid-
19
THANK YOU !
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