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In post-independence Malaysia, the small and medium industries (SMI) are among
the industries that contribute to the country's economic development. These
industries are defined by the Malaysia SMI Corporation as having an annual sales
turnover of not more than RM50 million or a full-time employee count of not more
than 200 for the manufacturing sector. In contrast, for the service and other
sectors, an SMI is defined as having an annual sales turnover of not more than
RM20 million or a full-time employee count of not more than 75. To advance these
industries, various steps must be taken. Offer financing, grants, loans, and
incentives to entrepreneurs at attractive and affordable rates. Various
initiatives are currently offered by the government, state governments, and
financial institutions. These parties should approach SMI entrepreneurs to
introduce their schemes and ensure that they understand the offers and returns
that they can receive. New entrepreneurs should compare all the schemes, grants,
or incentives and apply for packages that are beneficial and affordable for
them.
Upgrade the manufacturing technology from traditional to modern. The use of
technology machines can increase output and ensure good quality, which
significantly influences the continuous supply. For example, vacuum packaging
for crackers gains more customer trust and facilitates delivery or exportation
because it matches with other multinational products. Infrastructure investment
in the company is risky but is a long-term competitive strategy that can be
achieved by expert consulting and advisory services.
Approach universities or higher education institutions in research and
development related to their products. There is a lack of symbiosis between the
industrial and education sectors. To tackle this issue, the problems or
innovations in the SMI can be used as topics for student scientific projects.
This mechanism can help students practice the theories they learned while
providing new ideas to advance the products produced by the SMI, which can
eventually become competitive products internationally.
Strengthen the brand of the product. A brand is essential for entrepreneurs
to ensure that their sales targets grow and are widely accepted. From the
product's name, packaging, marketing approach to the product's quality,
entrepreneurs with related parties should learn the best formula for producing
internationally recognized products. Branding is crucial because it not only
leaves an impression on customers but also allows them to know what to expect
from SMI companies. This is a way to distinguish SMI entrepreneurs from other
competitors and to prove that SMI products are a better choice.
In conclusion, various initiatives can be taken to improve the SMI industry,
including offering financing and incentives, upgrading manufacturing technology,
collaborating with universities or higher education institutions, and
strengthening the product's brand. These steps require effort, commitment, and
determination to achieve the desired outcome. |
