Publication Date


Publication Details

Saleh, AS and Ndubisi, NO, SME Development in Malaysia: Domestic and Global Challenges, Working Paper 06-03, Department of Economics, University of Wollongong, 2006.


Hence, the primary objectives of this study are to analyze and discuss the development of Malaysian SMEs and their role, as well as various contributions, in the national economy. The chapter goes further by reviewing extant literature to identify the major challenges facing this sector in Malaysia as well as government policies aimed at the development of SMEs. In doing so the chapter proceeds as follows. Section 2 presents a profile of Malaysian SMEs, their role and contribution in different sectors and in the overall national economy. This section will also shed some light on their characteristics, especially in the manufacturing sector. Section 3 reviews the existing literature, including the empirical literature, in regard to the challenges that are facing Malaysian SMEs. Government policies as well as programs are analyzed and discussed in section 4. Finally, major conclusions and some policy recommendations will be reported in section 5.