1.7 OVERVIEW OF ENTREPRENEURSHIP PROGRAMMES IN MALAYSIA

During the period of the Ninth Malaysia Plan (2006 – 2010), a total of RM 26 billion was spent in entrepreneurship development programs, representing 11.6% of the total development expenditure during the period. The programs were aimed to address constraints faced by entrepreneurs and are categorized under three strategic thrusts, namely enhancing access to financing; building capacity and capability; and strengthening infrastructure. In 2013, the Government is implemented a total of 139 programs with financial commitment of RM 9.9 billion. In addition, the Government has been working together with the private sectors in undertaking another 15 programs accounting to a total of RM 8.5 billion. Altogether, there are 154 programs accounting to a total of RM 18.4 billion. The allocation of the funds for the development of entrepreneurship is brought to attention in the Tenth Malaysia Plan (2011 – 2015). Information about the government’s efforts to bring up the nation towards a high-income country that involved the empowerment of entrepreneurs indirectly is stated in each chapter of this plan. Strategies and programs for nation empowerment through entrepreneurship development are also asserted.

Examples of entrepreneurship programs for the empowerment are:

·         MaGIC

Recently, in October 11, 2013, RM 50 million (US$15.8 million) was allocated to establish the Malaysian Global Innovation and Creativity Centre (MaGIC), a one-stop center to empower entrepreneurs. MaGIC monitors the performance of entrepreneurs, houses an integrated database as well as incubators; assists with the patenting of intellectual property; provides funding facilities and a business-matching process. It also guides, counsels and trains entrepreneurs all under one roof. MaGIC sits under the National Entrepreneur Development Office, a new unit that is established under the National Strategy Unit of the Ministry of Finance, which plans and coordinates all activities related to entrepreneurship.

·         1Malaysia Entrepreneurs (1Met)

With the intention to make Malaysia “an Entrepreneurial Nation”, a program called 1Malaysia Entrepreneurs (1Met) was implemented to expose entrepreneurship to youths interested in venturing into business. The target is to train 5,000 young entrepreneurs yearly, with MaGIC playing a key role. The support of entrepreneurship is front and center for the Malaysian Government, and that is great news for the ecosystem.

·         Corporate Accelerator Program

Telekom Malaysia has been working with the Multimedia Development Corporation (MDeC) StartupMalaysia.org in introducing the first corporate accelerator program in Malaysia. This program to “help accelerates the growth trajectory of high potential digital entrepreneur start-up companies to tap global demand with innovative products and services”.

·         Pre-Commercialization Fund

The Pre-Commercialization Fund is an existing program implemented by the Ministry of Science, Technology and Innovation (MOSTI) to assist entrepreneurs in developing new or improving the existing possesses, technologies or products to be commercialized. This program also aims at creating an environment to encourage ecopreneurs, by increasing the application of innovative technologies in communities as a social responsibility. Total allocation of RM30 billion has been approved for this program, which aims to develop 25 projects with potential to commercialization’s. MOSTI through Multimedia Development Corporation (MDeC) will continue to implement the MSC Malaysia Cloud Initiative, targeted to undertake a series of 10 awareness campaigns which include a showcase to entrepreneurship and awareness on cloud application. A total of 1,300 entrepreneurs are expected to participate in this program. MOSTI through the Malaysian Technology Development Corporation (MTDC) will continue to implement the Commercialization of R&D Fund from the previous year, with an approved RM100 million to benefit 15 entrepreneurs and achieve 20 Intellectual Properties (IPs) that can be commercialized.

·         Specialized Food Processing Course

The Ministry of Industrial Development Sabah (MID Sabah) has conducted a Specialized Food Processing Course to upgrade and increase the skills and expertise of entrepreneurs to process food and improve the quality of food products. A total of six sessions that has been conducted, attracting an estimated 30 entrepreneurs to commence business.

·         Entrepreneurship Development for Orang Asli Community

The Ministry of Rural and Regional Development (MRRD) and Jabatan Kemajuan Orang Asli (JAKOA) will conduct the Entrepreneurship Development Program for Orang Asli Community. It is designed to increase Orang Asli participation in entrepreneurship via the provision of training and skills upgrading in various fields. A total of 200 entrepreneurs are expected to be trained, enabling 60% of participants to earn more than RM 1,000 per month within a year.

·         Incubator Skills Training for Single Mothers (I-KIT)

The Ministry of Women, Family and Community Development (MWFCD) through the Department of Women Development organized the Incubator Skills Training for Single Mothers (I-KIT) in 2013, to generate an expected 50% increase in income for single mothers. Meanwhile, the Women Entrepreneurship Incubator Program (I-KeuNITA) by MWFCD provided intensive skills training and entrepreneurship assistance for low-income women within the areas of sewing, beauty therapy, commercial cooking crafts, childcare and travel. A total of RM10 million has been allocated for these programs with 60 planned training sessions.

·         Exporters Training Program

The Ministry of International Trade and Industry (MITI) through the Malaysia External Trade Development Corporation (MATRADE) implemented the Exporters Training Program to equip potential entrepreneurs to be exporters with necessary knowledge and skills. A total of 40 seminars, targeting to equip the participating entrepreneurs with enhanced knowledge on export-related areas are organized under this program. Meanwhile, MITI together with SME Corporation Malaysia (SME Corp. Malaysia), will continue to enhance entrepreneurs’ knowledge in production, sales & marketing, and Halal-related matters for the food and beverage industry, through the sharing of Nestle’s best practices under the SME Mentoring Program.

·         Youth Entrepreneurship Program (Business and Agriculture Business)

The National Youth and Sports Department under the Ministry of Youth and Sports (MOYS), and the Youth Entrepreneurship Program (Business and Agriculture Business) offers courses in basic entrepreneurship in labelling and packaging technology, Smart Partnership and Technical Agriculture. A total of 41 programs have been planned, targeting, 1,000 participants to be exposed of entrepreneurship.

·         Entrepreneurship Sector of Entrepreneur Development (ESED)

The role of ESED is to empower Bumiputera entrepreneurs under the supervision of MARA one of the programs offered by ESED is Entrepreneurship Training Program, which serves to build up the continuance of entrepreneurs including their development and steadfast. Apart from that, Business Advice Service Scheme Program is offered to help entrepreneurs in solving the problems that they face/ the guidance is provided by a panel of MARA facilitators. Next is the Marketing Development Program which aims to help the Bumiputera entrepreneurs that are involved in various kinds of product to explore and seize market opportunities, expand the existing market size and increase the competitiveness in the market. ESED also offers Technopreneur Development Program and it is concerned with entrepreneurships that use and apply technology expertise in productions, service, business management and decision-making. The objective of this program is to increase the capacity and capability of entrepreneurs for small and medium enterprises (PKS) and large (Large Company) according to their respective classes which are implemented through the collaboration between Technology Smart-Partner and MARA with Higher Education Institutions (HEI) and Private Institutions that has the expertise based on research and strategic technology.

·         Sponsored Program by SME Corp Malaysia

SME Corp organizes several programs that aim to expand the number of entrepreneurs, particularly Bumiputera entrepreneurs. Among the programs offered by SME Corp Malaysia are Enrichment and Enhancement Program; Business Accelerator Program (BAP); SME-University Internship Program; SME Emergency Fund and several others. This program enables Micro Enterprise to be assisted through and integrated approach with guidance, including strengthening their core business, building capacity and capability, and facilitating access to financing Applicants receive business and technical advisory services, aimed at enhancing their business potential.

·         Sponsored Program by TEKUN

In 2015, Tekun allocated a sum of RM350 million to 33,000 Bumiputera entrepreneurs; RM50 million is assigned to the Young Indian Entrepreneurs Scheme Fund; RM50 million to the Professional Young Women Entrepreneur Development Program to finance the 5,000 professional women money borrowers and RM50 million has been allocated to the Ex-Army Entrepreneur Development Program to a total of 5,000 former soldiers who are not entitled for pension.

·         Cyberjaya Living Lab Accelerator Program

An initiative by Cyberview Sdn Bhd, an entity owned by Minister of Finance entrusted ti develop Cyberjaya to develop accelerated entrepreneurs from the ideation stage, innovation to commercialization stage by providing industrial networks through mentoring, venture/market acceleration program and market access opportunity. Through the Living Lab program, Cyberjaya will be the catalyst and test bed for entrepreneurs to move up the value chain and facilitation towards commercialization of the products or services. More information can be found from the website www.cyberjaya.com.my/join-tech-hub/accelerator.

·         Khazanah Nasional Entrepreneurship Outreach (KNEO)

The Khazanah nasional Entrepreneurship Outreach is a program initiated by Khazanah Nasional aimed to unearth entrepreneurial talent in Malaysia while equipping the with vital training and industry information via a series of boot camp and accelerator programs. The interested terms should fill up a simple application form as well as to provide a 2-minute video detailing the team’s idea and vision of their startup. The team requires a minimum of two members. Further information can be obtained from KNEO website www.khazanahneo.com.my.