MALAYSIA’S small and medium enterprises (SMEs) are expected to have a Gross Domestic Product (GDP) growth of 6.5 to 7.5% next year, said Prime Minister Najib Razak today.

Najib said the RM22.2 billion allocation for SME development in the 2018 Budget will help propel its growth. 

Last year, only RM5.87 billion was allocated for SMEs and this resulted in a growth of 5.2%.

“The continuous support of the government is important to develop SMEs via credit finance, capital guarantee schemes, easy loans, grant schemes, and also provide tax exemptions for the capital market that has all sorts of activities and products,” he said during the opening speech of the 23rd National SME Development Council meeting in Kuala Lumpur today. 

Touching on matters of the Digital Free Trade Zone (DFTZ) launch on November 3 in collaboration with Alibaba Group founder Jack Ma, Najib said the exports of SMEs are expected to increase by US$38 billion and create 60,000 new jobs by 2025.

“So far 1,997 SMEs are ready to export their goods through the DFTZ platform,” he said.

The world’s first DFTZ is a key component in driving Malaysia’s digital economy, helping SMEs capitalise on the convergence of exponential growth of the Internet economy and cross-border trade.

However, although the Malaysian economic market seems to be all bells and whistles, analyst are saying in reality these growth trends are not helping most Malaysians cope with the rising cost of living.

This is further proven when Malaysians on the ground echo what economists are saying.

The Credit Counselling and Debt Management Agency (AKPK) and Visa were also reported as saying more than half of Malaysians do not have enough savings, let alone be financially prepared for retirement.

“People are saving, but not enough. This is because a lot of people, especially young adults, do not think about retirement. Based on their (monthly) income, there is only a certain amount that they can save,” AKPK chief executive officer Azaddin Ngah Tasir said. – November 29, 2017.