SME Policies and Performance in Malaysia

Abstract

This study aims to achieve two major objectives. First, to assess policies and initiatives implemented for the development of small and medium-sized enterprises (SMEs) in Malaysia from the Eighth Malaysia Plan (2001-2005) to the Eleventh Malaysia Plan (2016-2020) as well as the SME Masterplan (2012-2020). Second, to analyze the performances and contributions of SMEs in Malaysia. The study provides a critical analysis of the adequacy of the Eleventh Malaysia Plan for SME development including whether the targeted goals for SMEs towards 2020 can be achieved. A key highlight of the analysis is the redefinition of SMEs which has greatly affected several indicators that are relevant to the measurement of the achievement of targeted goals. The study utilizes content analysis and the notion of embeddedness to examine the contents of published government reports on the topic of SMEs development and their way forward.