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Thinking Ahead. For You |
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MCA Economy Blue Print > |
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| MCA Economic Blueprint:
Introduction |
 Economic
Scenarios and Realities
The global economy is expected
to experience a bumpy ride over
the next 18 months. Some
estimate that 450,000 sub-prime
mortgages will need to be reset
to higher interest rates in
2008. The degree of tailspin
from the sub-prime crisis
remains uncertain. Major central
banks are adopting a cautious
approach and are bracing
themselves for a slowdown in the
midst of possible global
hyperinflation due to an
unprecedented rise in crude oil
prices as well as the prices of
other commodities in the next
few years.
Small and medium enterprises (SMEs)
comprise 99.2% of total
businesses in Malaysia. 2% fall
under the medium business
category while 18% fall under
the small business category.
This means that 80% of SMEs in
Malaysia are mainly family-owned
micro-businesses. As a whole,
SMEs make up around 40% of
Malaysia’s Gross Domestic
Product (GDP) and is still
considered the “backbone of the
economy”. However, given the
strong competition coming out of
China and other emerging
economies, the position of SMEs
is under tremendous threat if
they fail to make inroads into
the global market and/or
transform their businesses.
Following the Malaysian Chinese
Association’s (MCA) 9-Point
Party Platform agenda to
increase economic
competitiveness, the party has
come up with an Economic
Blueprint with 5 major thrusts
to address some of the key
issues and challenges. The
Economic Blueprint is aimed at
helping transform our SMEs
through aggressive re-investment
in technology, re-engineering of
business operations and
formation of strategic alliances
so that they may leverage on
their core strengths.
Trade between China and Malaysia
reached RM 91.45 billion in 2006
and RM95.23 billion in the first
ten months of 2007. Officials
predict that the trade figure
will hit USD 50 billion by 2010.
To benefit from this increase in
business opportunities,
Malaysian SMEs need to be able
to compete at the global level;
they can only do so by
transforming themselves and
improving the quality of their
human capital.
Thus, the main goal of MCA’s
Economic Blueprint over the next
five years is to help Malaysian
SMEs benefit from the emergence
of China as an economic
superpower and the rise of the
other East Asian economies,
while at the same time
maintaining a strong foothold in
mainstream of the Malaysian
economy. This will allow SMEs to
play their role as proud
Malaysians.
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Copyright © of INSAP 2008. All right reserved.
Disclaimer Notice: The Research & Planning
Department is not liable for any data and information
errors quoted from sources indicated.
5th Floor, Wisma MCA, 163, Jalan Ampang, 50450 Kuala
Lumpur, Malaysia.
Tel: +603-2161 6201/ 5621 Fax: +603-21613701 Email:
info@insap.org.my
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