Professional Documents
Culture Documents
Entrepreneurship
Framework
Strategic Thrusts & Objectives
The Ministry of Entrepreneur Development (MED) was re-established on 2 July 2018 by the new Government
with the objectives of formulating an inclusive and competitive National Entrepreneurship Policy aims to
Accelerating Economic Growth Through Strategic
Innovation Driven Entrepreneurship
rationalize and refocus all functions and roles of entrepreneur development programmes in order to support the
nation’s economic agenda and create a conducive and integrated entrepreneurship ecosystem. Thrust 1
Since its establishment, work has gone into the preparation of a National Entrepreneurship Framework involving
various stakeholders and entrepreneurs through the Bumiputera Entrepreneur Congress which has been
organised by MED in the different states. In addition, inputs from the Entrepreneur Development Advisory
Council (EDAC) which comprises of experts in entrepreneurship from various industries have also been included.
The Framework consisted of 21 Strategic Objectives grouped into 4 Strategic Thrusts namely Accelerating
Economic Growth Through Innovation Driven Entrepreneurship, Comprehensive and Integrated Entrepreneurship
Development, Boosting Entrepreneurship Among B40 and Scaling-Up Entrepreneurs.
STRATEGIC OBJECTIVE 1 : INCREASE SME CONTRIBUTION TO GDP
STRATEGIC OBJECTIVE 2 : INNOVATION DRIVEN ENTERPRISES
MED aims to strengthen the economic contribution of Small and Medium Enterprises (SMEs), which stood at 37.1% in
2017 of the country's Gross Domestic Product (GDP) to 41% by 2020.
MED aims to create and develop Innovation-Driven Entrepreneurs adopting the exponential entrepreneur framework;
Among MED’s focus would be as a facilitator to entrepreneurs and SMEs in establishing their business, ensure to achieve very high and fast growth, incorporating the latest exponential technological trends (Big Data, IoT and AI),
cooperation and strategic networking between the public and private sectors, as well as planning and psychological tools (innovative business models) and power of the crowd (crowdfunding, community building etc).
implementing activities to promote the entrepreneurial culture. This will help entrepreneurs and SMEs to ultimately
become homegrown champions in their respective sectors and be successful in both domestic and global markets.
MED will also look into new trends that will accelerate SME’s growth such as megatrends and Industrial
Revolution 4.0 (IR4.0). A two-pronged strategy needs to be undertaken for sustainable and inclusive development by:
In order to ensure that Malaysia continuously grows the funnel of startups for In order to stimulate new type of Innovation Driven
future industries, MED will ensure that the process of ideation from startup to Opportunities for Startups, there is a need to establish a
scaleup is inclusive and accessible by ensuring enough touch-points for platform that allows for the challenges and issues of the
individuals to explore ideas. Government, corporates and SMEs to be exposed to startups.
Realizing that funding is an important element in the Startup Ecosystem, MED Startups are known to be able to solve problems more
will be driving the movement to attract more venture capital funding, impact efficiently and effectively. The creation of such platform will
investments via incentives and schemes so that high performing startups will transform the country into a citizen of problem solvers and we
be able to timely seize the opportunities and potentials, which MED hopes will hope that this will in turn support the countries’ aspiration as
enable the discovery of another Unicorn in Malaysia. an Entrepreneurial Nation.
MED also plans to ensure that entrepreneurs/ startups dealing with Future Industries are given the
opportunity to flourish. In order to do this, Industries and Startups cannot work in silos. MED intends to
create an innovation supercluster of identified sectors of the future such as Mobility, Clean Energy, Smart
City, Healthcare and Agritech.
These Innovation Superclusters aims to bridge industry players and Startups/Entrepreneurs in driving new
innovations faster to the market. Superclusters are essentially micro-entrepreneurial ecosystems of the
identified industries.
STRATEGIC OBJECTIVE 4 : EASE OF ACCESS TO FUNDING STRATEGIC OBJECTIVE 5 : ALTERNATIVE SOURCE OF FINANCING
Strategic
necessary collateral and financial development organizations and
track record. DFIs need to be
assessed differently than commercial
agencies to assist in the national
entrepreneurship development
Comprehensive and Integrated
Entrepreneurship Development
Thrust 2
banks to undertake this responsibility agenda. Currently, data on
more effectively. According to the entrepreneurs are collated by
2016 Economic Census, only 4.2% of various Ministries and agencies,
SMEs are funded by DFIs in Malaysia some of which may be duplicating
as compared to 24.1% by commercial and are not easily accessible by
banks. stakeholders.
MED in partnership with Bank Negara There is real need for the
Malaysia, will be focusing on enhancing Government to produce a centralized
the role of DFIs such as TEKUN, Bank database on the entrepreneurial
Rakyat and SME Bank in providing the ecosystem which include the
necessary funding support to local number of entrepreneurs,
SMEs while at the same time ensuring employment generated by
the continued sustainability and fiscal entrepreneurs and value creation of
accountability of DFIs. entrepreneurship to the country.
STRATEGIC OBJECTIVE 8 : STREAMLINE / RATIONALIZE ROLES AND STRATEGIC OBJECTIVE 9 : STREAMLINING ENTREPRENEURSHIP TRAINING
FUNCTIONS OF ALL EDOs
Despite various entrepreneurship training programmes being provided by Ministries and agencies,
many of them are duplicating and inconsistent with each other. In addition, complaints have been
received regarding the quality and outcomes of these programmes as compared to the costs
expended by the Government.
A National Entrepreneurship Training Council will be formed under MED to align and monitor all matters
pertaining to entrepreneurship training :
+
To align the curriculum used by agencies and training providers.
60
Entrepreneur
Malaysia currently has more than 60 entrepreneur development agencies scattered across various
Ministries and states. In 2018, a total of 151 SME development programmes have been planned with
To monitor the outcome of such programmes.
Development financial commitments amounting to RM12.89 billion. Accreditation will be carried out by the National Entrepreneurship
Agencies Training Council to ensure the curriculum is aligned to 11th MP and
other policy directions.
The establishment of MED is timely with relevant key agencies parked under it which are involved in
planning and coordination, funding and training. This would allow the Ministry to design, coordinate
Streamline
and implement SME and entrepreneurship-related policies, regulations as well as action plans across MED will be introducing a legislation to upgrade the status of
and
all sectors in a cost effective and efficient manner. At the same time, there is need for MED to Maktab Koperasi Malaysia (MKM) to an Institute in order to
Rationalize
streamline and rationalize the role and functions of all these agencies so that there is no duplication enhance the quality of training provided to co-operatives.
and overlap of resources.
STRATEGIC OBJECTIVE 10 : ENTREPRENEURSHIP SKILLS FOR UNEMPLOYED STRATEGIC OBJECTIVE 11 : CONSOLIDATION OF EXISTING ENTREPRENEURSHIP
GRADUATES DEVELOPMENT FUNDS
Newly revamped programme based on current modus will be implemented as a platform to not only assist
unemployed graduates, but also producing job creators by providing relevant training for the graduates with additional MED aspires for entrepreneurship training and courses be made available to the Rakyat by
entrepreneurial modules. This new concept is aimed to assist the unemployed graduates through several initiatives introducing a new service delivery model of subsidization by credit points system, making it
such as :- affordable for all especially the B40s.
Entrepreneurship
The Entrepreneurship Development Fund (EDF), is a concept whereby an entrepreneur who registers
To collaborate with relevant agencies to To provide ‘the right awareness approach’ will be allocated EDF credit points per year, based on their income bracket. The allocation given will
provide real entrepreneurial training with for entrepreneurial to university students. be more favored towards B40s.
live business set up to boost the graduates'
experience & new interest as job creators.
To enhance the quality of training, MED will also be monitoring the standard of entrepreneurial
To reach out to graduates through nationwide To assist in providing seed money through a training providers across the country. They would need to register and be certified by MED as an EDF
Entrepreneurial and Employability Outreach revolving fund initiated by the private Training Provider, together with the proposed structure of cost subsidization model for each training.
Programme. sector or Co-operatives.
This concept will allow all income groups in the country to have affordable access to various
An Intensive Boot Camp for Graduates Providing employability training through
certified entrepreneurship training and courses. The model will not require monetary fund per se
already in business. soft skills and genuine on-the-job training
from the Government, but substituting it with a working credit points system thus establishing a
with the industries such as GLCs, VDP
new service delivery model.
companies and also Government tender
receiving companies as part of their
Corporate Social Responsibility (CSR)
programme.
STRATEGIC OBJECTIVE 12 : CO-OPERATIVES AS KEY INSTRUMENT TO
BOOST ENTREPRENEURSHIP AMONG B40
Co-operatives currently account for less than 1% of the National GDP with
the total number of co-operatives amounting to 14,000 across the country.
The Government sees the potential of co-operatives as a growth vehicle
Strategic
for the economy particularly to address the needs of low income
households and rural communities.
Boosting Entrepreneurship Among B40
Thrust 3 To ensure co-operatives remain competitive and viable, this sector will be
given exposure and incentives to explore and penetrate new strategic
businesses that will yield high return.
The new aspirations and ideals will bring new challenge to co-operatives to not only uplift
the standard of living for its members but also to realize the development agenda.
Therefore, the co-operative movement should ensure effective intervention in issues like
co-operative membership, finance, leadership and management. Steps need to be taken to
overcome shortcomings and help co-operatives to operate efficiently. Ultimately,
co-operatives not only bring returns to its members but also act as economic booster to B40s.
STRATEGIC OBJECTIVE 13 : POTENTIAL OF CO-OPERATIVES AS ECONOMIC STRATEGIC OBJECTIVE 14 : CO-OPERATIVES AS DRIVER OF SOCIAL
DRIVER ENTREPRENEURSHIP
From the point of view of a business enterprise, in many aspects co-operatives are similar to other
businesses as they have similar facilities to undertake their businesses, undertake similar functions
and follow good business practices
Co-operatives are not treated as an SME in Malaysia. For example, co-operatives have to register with
the Malaysia Co-operative Societies Commission (SKM) whilst other business enterprise are registered
with the Companies Commission of Malaysia (SSM). In addition, co-operatives have different tax
treatment than SMEs.
There have been more demands from co-operatives to benefit from various assistance and access
provided to SMEs such as brand development (packaging and brand certification), financing (loan, Social Entrepreneurship is a key agenda for MED in In our various socio-economic agenda, people
credit guarantee and grant), capacity building (promotion and training) and market access (domestic empowering the people to address social and should be involve in meaningful and constructive
and international). MED will be looking at this long standing proposal to ensure some parity environmental issues. Co-operatives is one of the manner that allow the economy to be mobilized
between co-operatives and SMEs. tools to achieve this goal since its natural DNA through the communities unity without over relying
combines business and community building to the Government. Social Entrepreneurship (SE)
MED will be conducting a review on the current legislation pertaining to co-operatives namely Akta through co-operatives will be promoted to bring
Suruhanjaya Koperasi Malaysia 2007 (Akta 665) & Akta Koperasi 1993 (Akta 502) through a public social change in community by individuals who
consultation process beginning December 2018 to ensure co-operatives remain relevant and combine the pragmatic and result oriented method
competitive to the current development. of business enterprise with the goals of social
reformer. SE can be used as a tool to inspire
community to address social and economy common
needs through potential entrepreneurship.
STRATEGIC OBJECTIVE 15 : MULTI PLATFORMS FOR MARKET ACCESS
OF B40 PRODUCTS AND SERVICES
B40 entrepreneurs will be encouraged to get on-board of e-commerce. MED through its agencies such as SME Corp will
continue to provide guidance and training for entrepreneurs to promote and sell their products and services via online
platforms.
MED will encourage private sector players to partner with B40 entrepreneur to market their products. This will enhance
visibility of B40 products as well as provide more opportunities for B40 to market their products both locally and for
the export market through various platforms.
In addition, MED will also utilise its agencies online portals such Bank Rakyat TV (BRTV) to promote products and
services of B40 entrepreneurs.
STRATEGIC OBJECTIVE 16 : EXPAND THE ROLE AND COVERAGE OF STRATEGIC OBJECTIVE 17 : TO ESTABLISH A DEDICATED RESEARCH AGENCY
“ENTREPRENEUR ONE STOP CENTRE” ON ENTREPRENEURSHIP AT MED
At present, there is no dedicated research agency that looks into matters pertaining to entrepreneurship in the country.
It is proposed that MED sets up a National Entrepreneurship Research Centre which will undertake to:
KEMENTERIAN PEMBANGUNAN USAHAWAN
MINISTRY OF ENTREPRENEUR DEVELOPMENT
MED had launched the Entrepreneur Development One-Stop Centre that offers comprehensive and coordinated Analyze data gathered Provide reports on existing
entrepreneur support services as one stop. through the central database trends of entrepreneurship
that is being developed in the country
The one stop centre will also function as a mobile exhibition centre and facilitate efforts to develop entrepreneurs in
Malaysia. This will help public in getting latest information on entrepreneurship programmes as well as financing
offered by various agencies.
To ensure successful execution of Vendor Development Programme (VDP), MED will increase participation
of new anchors from GLCs, MNCs, PLCs and Vendor Champions. Their participation as anchor companies
are needed to expand entrepreneurship sectors and develop more vendors. Thus, will increase and
diversify business areas for vendors.
Vendor
21 Anchor 1,354 Vendor
Development
Companies Companies
Programme
To date, most anchors under the existing Vendor Development Programme (VDP) only have vendors at a single tier.
There is a need to improve and perhaps emulate the vendor programmes in other countries such as Korea and Japan
As to date, there are 21 anchor companies and 1,354 vendor companies involved in VDP. Subsequently,
where vendors with multiple tiers are created until Tier 5 -7 so that it covers the B40 segment.
the increase in number of new anchors will generate good competition amongst anchors and vendors.
5 Providing market intelligence and advisory services on other markets. MED will leverage
Malaysian agencies and foreign missions abroad, and also collaborate with international
organizations such as ASEAN, APEC, OECD and ERIA.
Blok E4/5, Kompleks Kerajaan Parcel E,
Pusat Pentadbiran Kerajaan Persekutuan,
62668 Putrajaya Malaysia.