SMEs to benefit from RM1bil fund under Mida to spur technological growth (SME Bank)

Source from (The Star Online): http://thestar.com.my/news/story.asp?file=/2012/9/29/budget/12100720&sec=budget

Published: September 28, 2012

THE RM1bil Domestic Investment Strategic Fund (DISF) under the Malaysian Investment Development Authority (Mida) will be key to spur the technological growth of small and medium enterprises (SMEs).

The Free Industrial Zone, Penang, Companies’ association president Heng Huck Lee said that with the fund, local SMEs would be able to acquire innovative manufacturing technologies that would improve their support for the multinational corporations.

”This would in turn increase the attraction of Malaysia as an investment destination that is capable of delivering high quality manufacturing support.

”We can expect many SMEs taking up the grant from Mida,” he said
Heng spoke in response to Prime Minister Datuk Seri Najib Tun Razak’s Budget 2013, which allocated RM1bil for Mida and another RM1bil fund under the SME Development Scheme to be managed by the SME Bank.

The DISF is aimed at helping Malaysian companies to leverage on outsourcing activities and the acquisition of technologies.

The RM1bil fund under the SME Development Scheme is to accelerate the growth of SMEs and the expansion of industrial areas.

Penang SME management council chairman Datuk Seri Kelvin Kiew said the DISF would would help SMEs adopt new technologies for the light-emitting diodes, nano-technology, and radio frequency industries, which would also helped to retain talents.

“It is now a question how to administer the grant,” he said
Malaysian American Electronics Industry chairman Datuk Wong Siew Hai said the DISF was timely as it would help the SMEs to go global in their business.

“The allocation of RM1bil is a good start for SMEs to to develop new technologies and products,” he added.

Penang Foundry & Engineering Industries Association president Datuk Ng Chai Eng said the Federal Government should set up a committee comprising industry players and government personnels to determine the companies eligible for the grant.

”This is to ensure that only the deserving companies get the funding,” Ng said.

On the RMbil under the SME Development Scheme,the Federation of Malaysian Manufacturers (FMM, North) chairman Khoo Cheok Sin said previously such funds were available, but they were not accessible to deserving companies.