Monday, April 11, 2011


Tuesday April 05, 2011





Assalamualaikum W.B.T and Salam 1Malaysia.

Yang Berbahagia Dato’ Mohamed Hassan Kamil,
Group Managing Director of Takaful Malaysia;

Yang Berbahagia Datuk Ir. (Dr.) Mohamed Al Amin Hj. Abdul Majid,
Chairman of SME Corporation Malaysia (SME Corp);

Yang Berbahagia Dato’ Hafsah Hashim,
Chief Executive Officer of SME Corporation Malaysia (SME Corp);
Management of Takaful Malaysia and SME Corp. Malaysia;

Members of the Media,

Ladies and Gentlemen.

1. First of all, I would like to thank the Management of Takaful Malaysia for inviting me to be part of another history making occasion for both Takaful Malaysia, SME Corporation and also, SME players as a whole. It is indeed an honour to be here with all of you.

Ladies and Gentlemen,

2. In line with the country’s strategies towards creating a high network community within 1Malaysia, the development of diverse and competitive small and medium enterprises (SMEs) would then be the central theme, towards achieving sustainable economic growth. SMEs are crucial to the economic growth process and play an important role in the country’s overall production network. Some advanced economies are bathing in success because their SMEs have become the fundamental part of the economy; comprising over 98% of total establishments and contributing to over 65% of employment as well as over 50% of the gross domestic product.

3. Although the numbers might be smaller in Malaysia, but I believe we are on the right path towards that envisioned state as our SMEs have the potential to substantially contribute to the economy; providing strong foundations for the growth of new industries as well as strengthening existing ones.

Ladies and Gentlemen,

4. With more than 90% of total business establishments in Malaysia, it is clear that promoting the SME sector is essential in the nation’s stride towards broadening the sources of growth and sustaining the momentum. This is evident, with other support strategies laid in place within the country’s New Economic Model (NEM), Tenth Malaysia Plan (10th MP) and the Economic Transformation Programme (ETP).

5. In the 10th MP, the Government committed to nurture SMEs in order to create domestic, regional and global champions. We believe that there are numerous potentials for the 1Malaysia SMEs, given their established and strong foundations built in the Malaysian economy. Currently, SMEs are contributing about one-third of Malaysia's overall GDP and providing over 56 per cent of total employment in the country. What’s more, the 10th MP will introduce numerous measures to reduce regulatory costs of doing business, enhancing the existing skills and capabilities of SMEs and importantly, providing a variety of avenues for SME business financing models. The Government too will deliver its courses in various fields such as business management, finance and information and communications technology to almost 20,000 SMEs during the 5 year plan period. Various initiatives are also in the pipeline to strengthen the support systems for SMEs to increase the acceptance of their products and services through heavy promotions and market reach. Again, the access to business financing for SMEs, particularly for working capital and capital investment, will remain as the key in the development of SMEs in Malaysia.

Ladies and Gentlemen,

6. On 25th October 2010, the Prime Minister launched the Economic Transformation Programme, with an expectation of 5-6 percent GDP growth from 2011 – 2020, in order to lift Malaysia’s per capita income from RM 23,700 (USD 6,700) in 2009 to more than RM 48,000 (USD 15,000) in 2020. The programme provides strong focus on 12 key growth engines with 131 entry point projects (EPPs) being identified. 60 projects have been implemented and during the recent update announced on 8 March 2011, Small Retailer Transformation Programme (TUKAR) has been introduced to transform our small retailer shops into modernised and competitive sundry shops.

7. Thus, in short, the Government has always been a strong supporter of the SMEs. In line with the many goals of the New Economic Model, which places emphasis on innovation, creativity and skilled human capital development, we can conclude that creativity and innovation are the catalysts that will drive the growth of SME businesses.

8. Hence, for things to change, we must change first. To all SME players, not only those who are with us today but also those who are out there, please adapt to changes and if you are required to change the way you do your business, please do not be afraid to do so as it will not only benefit your company but also the development of the country as a whole.

Ladies and Gentlemen,

9. Today, we will witness the signing of the MoU between SME Corp and Takaful Malaysia. I am sure by now that all of you are well aware of the roles played by SME Corp. As the central coordinating agency for SME development in the country, the agency has expanded its functions beyond business support to include formulating overall SME policy, coordinating SME development programmes and also providing comprehensive business advisory services.

10. On the other hand, Takaful Malaysia is the first takaful operator in the country with over 26 years of solid experience in the Takaful industry; offering solid general and family insurance solutions as a reliable partner to all 1Malaysia SMEs. Takaful Malaysia is also an example of a Made in Malaysia brand. Leveraging on Takaful Malaysia’s experience and backed by their team of professionals, SME players should take full advantage in learning risk management processes from them. I would like to congratulate all parties involved and wish you every success in your partnerships.

11. I have attended many important strategic functions to boost the Malaysian SMEs’ state of business and this MOU signing between these organisations is again timely to ‘Groom our SMEs Big’.
Ladies and Gentlemen,

12. Today will not only mark the launching of Takaful mySME products but it will also be the kick-off of their nationwide risk management education and awareness plus business networking road shows for the SMEs. Spread the news around and get other SME players to be part of the road shows. I know that these road shows will serve as the perfect platform for all of you, the SME players to expand your networks. Networking is one of the key pillars for any successful business. No matter whether your business is big or small, this important factor should not be taken for granted.

13. Before I conclude, I am pleased to see that today’s programme is well attended by the SMEs players, as well as the media. I hope that the new Takaful mySME products will spark your interest on risk management and the importance of having insurance protection. As highlighted by Dato’ Hassan, do take advantage of the 15% No Claim Rebate offered by Takaful Malaysia. Every cent counts and in this case the rebate can directly heighten business productivity and better cash flow management.

14. On this positive note, it is my pleasure to launch Takaful Malaysia’s – Takaful mySME products.

Thank you.

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