The Government Business Support Services in Malaysia: the evolution and challenges in the new economic model

• Main Authors: Mohd Nor Hakimin Yusof, Mohd Rafi Yaacob
• Format: Non-Indexed Article
• Published: 2010
• Online Access: http://discol.umk.edu.my/id/eprint/7615/; http://ccsenet.org/journal/index.php/ijbm/article/view/7308/5679
• Institution: Universiti Malaysia Kelantan

Over the years, the government business support services (GBSS) have worked closely along the government policies and experienced a number of transformations to suit the current needs of the SMEs and business environment. In order to understand the philosophy and the very nature of the GBSS in the present context it is paramount to study the development of the services in the country over time. Hence this paper explores the evolution of the GBSS, starting from prior independence period to the New Economic Policy era and in the contemporary period. The study shows the government business involvement formerly started a few years back before the independence. A humble beginning with the objectives to bring close ties between the rural folks and the government had acted as a stepping stone to the glorious achievement of the GBSS. The quantum leap begun in the NEP era as the current government had recognised the roles of entrepreneurship as a catalyst to the social restructuring process. While understanding the evolution of the GBSS provides a background of the study, it is paramount important to look at the challenges faced by GBSS in current situation. The new economic model which was launched by the Prime Minister recently is aimed at moving the country towards high income economy in ten years times. Coherently, the move is a big challenge to the GBSS as to better equip the Malaysian SMEs with innovation, creativity and value-added activities. An important question is, do they ready for the big game? The present paper is structured according to the following lines. First, a brief reviews the establishment, roles and present functions of the GBSSs’ main players namely Majlis Amanah Rakyat (People Council of Trust), SME Bank, GCG, SME Corporation and National SMEs Development Council. Second, discusses the current issues and challenges that need to be addressed by the GBSS, and lastly discusses and suggests viable strategies should be taken by the GBSS to remain relevant and successfully contribute to the new economic model.