The Malaysian economy achieved a steady growth in 2006, amidst improving macro-economic fundamentals, a strengthened financial sector and a more diversified economic structure. In spite of its open economy, Malaysia achieved a major milestone last year in the history of Malaysian’s external trade – Malaysian’s total trade breached the RM1 trillion value, exceeding previous year’s total trade by 10.5%. This trade growth comes on the back of increasingly positive economic data in recent months, coupled with more business friendly policies and development plans.

This trade growth has also highlighted the fact that trade with developing economies in Latin America, South Asia, Eastern Europe, ASEAN countries, West Asia and China have widened and deepened. Going forward, we should continue to build upon this growth momentum and strive for greater synergy and competitiveness to anchor Malaysian brands in these developing economies.

The Malaysian Government has continuously placed emphasis to develop a strong and dynamic SME sector. More than 90% of business establishments are SMEs. While they are a major source of employment, they have only contributed less than 20% to the total export value and less than 35% of GDP.

In view of this, the Government has embarked on major initiatives for SME development aimed at building capacities and capabilities, enhancing their access to financing and strengthening the enabling infrastructure to further support their growth.

MASSA is also committed to support this programme and it is our hope and call to SME establishments in Malaysia to avail themselves to the many programmes and initiatives of the Government and find a niche for their line of business, not only in Malaysia, but also in the developing countries of the South. Towards this end, our newsletter is committed to provide members and our readers with useful information for SMEs to move forward in their businesses.

On this note, I wish to thank Tan Sri Dato’ Soong Siew Hoong for contributing an article in this newsletter on why SMEs should undertake cross border businesses. His efforts to help our SMEs upgrade and improve themselves have been exemplary and today, his knowledge and services are much sought after in developing countries. We are pleased to welcome Tan Sri Soong on board our Committee.

TAN SRI DATO’ AZMAN HASHIM
President