SMEs advised to conduct feasibility study

24 May 2010 , By The Star

The local small and medium enterprises (SMEs) are advised to conduct a feasibility study on the demand for products and services first before decided to enter the market.

International Trade and Industry (Miti) deputy minister Datuk Mukhriz Mahathir said the study was important, as it would provide the necessary information on the market trend and consumers' behaviour.

“Understanding the market demand and trend will give the SMEs a better insight on what consumers want and they could better plan their business strategy,'' he said yesterday.

Mukhriz was speaking to the media after opening Ekspo Usahawan Bistari 2010 jointly organised by Miti, Johor Corp and Malaysian Islamic Chamber of Commerce at Persada Johor International Convention Centre here.

He said the majority of the local SMEs focused only on the manufacturing activities but did not give equal attention to the marketing and promotional activities.

Mukhriz said most of them would only conduct the market study after they had produced the products; by then they would have problems selling their products as the market was already saturated with similar items.

“Instead of offering similar products which have already flooded the market, they (SMEs) should start looking at producing niche products,” he advised.

Mukhriz said there were now many ways to market and promote products and services and to reach wider target consumers such as using the Internet, e-commerce and the new media.

On problems raised by the SMEs that they still had a problem in getting loans from financial institutions, he said the ministry would look at ways to solve the issue.

He said based on feedback from Bank Negara, there was enough money in the market for the SMEs but the number of applications from those interested that were registered as the SMEs had quadrupled in the recent months.

Mukhriz said Miti would organise more business matching between the government linked companies (GLCs) and the SMEs as the latter still needed support, especially as the economy was now gradually recovering.

On another matter, he said Malaysia was now in a better position to attract foreign direct investments (FDIs) with the country's competitiveness surging to the 10th spot now from 18th a year earlier.

“Foreign investors will look at the report (IMD World Competitiveness Yearbook 2010) and the ranking bodes well for Malaysia,'' added Mukhriz.