Budget Support to SME for Malaysian budget 2013 Article

Budget Support to SME for Malaysian budget 2013 - Article Example Moreover, SMEs are also differentiated on the ground of turnover or total balance sheet amount over a certain period of time (European Commission, â€Å"Small and Medium-Sized Enterprises (SMEs)†). The role of SMEs currently played within the context of a developing nation can be well-explained with the illustration of Malaysian economy. In the current day context of Malay economy, SMEs play important functions in order to develop the industrial sectors. Furthermore, SMEs are considered as significant contributors for the development of the Malaysian economy (Radam, Abu and Abdullah, â€Å"Technical Efficiency of Small and Medium Enterprise in Malaysia: A Stochastic Frontier Production Model†). In Malaysia, SMEs are identified in accordance with activities performed, the size of the enterprises along with the extent of turnover attained by these entities over a certain period (Saleh and Ndubisi, â€Å"An Evaluation of SME Development in Malaysia†). Malay SMEs are defined into two categories, i.e. (1) manufacturing services and agro-based industries and (2) service, primary agriculture as well as Information and Communication Technology (ICT) based on their annual turnovers and their total worker population. SMEs in the manufacturing services and agro-based industries segments operate with the manpower of around 150 employees on a full time basis. Additionally, the annual turnover of these enterprises accounts to around RM 25 million (Saleh and Ndubisi, â€Å"An Evaluation of SME Development in Malaysia†). On the other hand, SMEs of the service, primary agriculture as well as Information and Communication Technology (ICT) sectors employ around 50 workers on a full time basis, while, the annual turnover of these enterprises are accounted to be around RM5 million (Saleh and Ndubisi, â€Å"An Evaluation of SME Development in Malaysia†). Contextually,