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Essay / The development of SMEs - 1627
According to data from the Society for the Development of Small and Medium Industries (SMIDEC) in 2002, SMEs had reached and represented 93.8 percent of companies in the manufacturing sector. SMEs contributed 27.3 percent to total manufacturing output, 25.8 percent to value-added production and own 27.6 percent of fixed assets, while using 38.9 percent of the country's workforce. Furthermore, a value-added product from SMEs is estimated at RM120 billion, accounting for 50 percent of the total 2020 production turnover, especially in the manufacturing sector. According to these statistics, the share of Malaysian SMEs in total exports is about 20 percent lower than that of most other countries such as the Philippines, Hong Kong, Taiwan, and also includes the United States (SMIDEC, 2002). It is undeniable that the growth rate of the Malaysian economy depends on the important role of SMEs. However, their engagement in the country's economy is still quite weak. Therefore, the government has implemented SME development where it is a high priority area under the development agenda. Furthermore, the New Economy Policy of 1971, which had implemented by the government a sense of commitment and concern of the government towards the development of SMEs since the early 1970s. However, it aims to improve the good -be people and alleviate ethnic economic imbalances. SMEs have their own objective in which they want to promote the development of highly innovative, competitive and sustainable SMEs through effective business coordination. support (SMIDEC, 2013). With the desire to achieve, SME has built a strategy by taking steps such as applying innovation and technology which includes efforts to include...... middle of paper ...... main processors of spices. Malaysia ranked sixth among processors of peppers and pepper products (specialty peppers, processed peppers and pepper sauce) in 2010. Malaysia is also one of the world's leading producers of spices. Johor's economy is expected to grow by 6.1 percent in 2013 and 5.5 to 6.1 percent this year, based on the 2013 investment scenario. Adami Food and Spices Industries is located in Muar, Johor, so the company must follow the government's goal of stabilizing Johor's economy. Since the company is opposite the Bas Express in the middle of Muar, the company can attract tourists from other states or countries to buy with the smell of spices and they can also talk mouth to mouth with the product of Adami in their State. So that the company can achieve the government's goal of stabilizing the economy in Johor..