SME DEVELOPMENT: POVERTY REDUCTION APPROACH ASEAN+3 Village Leader Exchange Programme (VLEP) Mr. Abu Bakar Md Nor Mr. Md Nazori Hashim Mr. Adam Mohd Mr. Rizrikin Annuar Disclaimer: The views expressed in this document are those of the author, and do not necessarily reflect the views and policies of the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this document, and accept no responsibility for any consequence of their use. By making any designation or reference to a particular territory or geographical area, or by using the term “country” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area.

Indicators of Rural Malaysia.. Average household income has significantly increased from 1970s, whilst the income disparity between urban and rural population now stands at approx 1.86:1 How does Malaysia define its rural area? An area of less than 10,000 residents outside of local authority zones RM5,742 (USD1,794) RM5,000 (USD1,563) Malaysia’s rural area comprises of 70% of its total size (231,180km2 / 23 mil ha) including agriculture areas, forests, villages, coastal areas and islands RM3,080 (USD963) Source: DOS, JPBD

Percentage of rural population has been decreasing since 1970, from 71 Percentage of rural population has been decreasing since 1970, from 71.6% to only 26.3% of Malaysia’s total population Age demographic shows the biggest group is between 15 – 39 years old, similar between rural and urban population Source: DOS

Malaysia Poverty Line Index for a 5 member household is separated into 3 categories according to territories Since 1970s, Malaysia’s incidence of poverty at rural area has been on the decline, wherein the focus has now shifted to pockets of poverty Territory Poverty Hardcore Poverty USD RM Peninsular 259 1,010 163 635 Urban 263 1,025 159 620 Rural 247 963 166 647 Sabah 341 1,329 206 803 338 1,318 197 768 350 1,365 222 865 Sarawak 288 1,123 188 733 300 1,170 272 1,060 178 694 Exchange Rate: USD1 = RM3.90 Source: DOS, EPU

NATIONAL BLUE OCEAN STRATEGY Focus on rapidly delivery high impact on both capital and people economies A unique and dynamic national strategy platform which bring together ministry, agencies, all level of government and the private sector on voluntary basic to develop initiatives are high impact, low cost and rapidly executed NBOS Focuses on rapidly delivery high impact on both the capital and people economies at low cost to the government. NBOS is formulated and executed through the NBOS Summit, a unique and dynamic national strategy platform which bring together ministry, agencies, all level of government and the private sector on a voluntary basis to develop initiatives that are high impact, low cost and rapidly executed. MRRD Ministry of Rural & Regional Development who in charge to provide homestay training and advisory to rural community Provide incentives Small-Medium Industries Scheme and Entrepreneurs Aid and Cooperative to rural people to setup homestay business Provide hospitality and infrastructures to access to rural areas MOTAC Ministry of Tourism and Culture responsible to giving licensing to practitioner homestay Their provide promotional related advisory on tourism and hospitality Provide advisory to homestay industry such as quality tourism services and activities/programmes in order to promote the involvement and appreciation for tourism industry to promote the country as a premier tourist destination at domestic and international levels MOA Majority the rural people actively involve agriculture as source of income, Ministry of Agriculture and Agro-Based Industry responsible to provide training and advisory in agro-based industry and promote village product Given encouragement and incentive scheme for rural entrepreneurs

NURTURING SMALL INDUSTRIES AND RURAL ENTREPRENEURS IN PRACTICES

OUR FOCUS SME 1995 to 2009 Source: Annabelle Ong (2015)

STRATEGIC THRUSTS Healthy Lifestyle Knowledge Development - Enhancing the knowledge base in various subjects, hence functioning as a foundation for the competence of youth Attitudinal Development - Inculcating of moral values and the development of a positive and creative attitude Vocational and Entrepreneurial Development Equip youth with the state-of-art technical knowledge and vocational skills. Involving them in entrepreneurial activities in line with the demands of nation- building Healthy Lifestyle - Engage in social and voluntary activities that lead to a healthy, active and dynamic lifestyle to nurture them into responsible leaders of high caliber.. Facilities for Social Interaction - Upgrade relevant facilities that contribute towards promoting healthy interactions and social activities amongst youth and communities Partnership in Development - To utilize partnership and co-operation amongst governmental agencies, NGOs and the private sector for the benefit of youth development International Relations and Networking - To encourage youth to further promote closer ties and international networking with international communities

PROGRAM SME PROGRAM Knowledge Development Facilities for Social Interaction Healthy Lifestyle PROGRAM Partnership in Development Attitudinal Development Vocational and Entrepreneurial Development International Relations and Networking

PROGRAMS AND INITIATIVES FOR SME Business Advisory Services @ORC Branding & Packaging Mobile Gallery Access to Financing Human Capital Development Infrastructure Innovation & Technology Adoption Market Access

CHALLENGES IN FUTURE DEVELOPMENT Less Job Opportunity because to many postgraduate (urban & rural) Land Owner (Rural Community) is minority Foreign Migration

THANK YOU THANK YOU