KUALA LUMPUR: Malaysian small and medium enterprises (SMEs) will need to work harder to achieve the target of 41% contribution to the country’s Gross Domestic Product (GDP) by 2020.

Minister in the Prime Minister’s Department Datuk Seri Dr Wee Ka Siong said the target set in the SME Masterplan 2012-2020 could be achieved if the SMEs maintained an annual growth rate of 8.9% and above until 2020.

“It is a big challenge because you are talking about the GDP, which is expanding every year, and you have to outperform the GDP.

“That means you may need to have more assembly plants, more offices, more money for company expansions and serve the broader regional customers,” he said during a press conference after a dialogue on National Transformation 2050 (TN50), “Year 2050: New Start-up, New Retail, New Finance” with youths yesterday.

Dr Wee, who is also MCA deputy president, said SMEs currently contributed up to 36% of the GDP and this was growing at a pace of more than 6%.

In comparison, SMEs contribute 60% to 70% of the GDP in many advanced countries.

“Without the SMEs’ contribution, we may not be able to achieve the status of advanced countries, especially when we want to compete with them,” he added.

Asked about the Budget 2018 allocation for SMEs, Dr Wee said the Prime Minister wanted to stimulate the SMEs and that he would “definitely do something” about it.

On ex-Selangor mentri besar and Umno former vice-president Tan Sri Muhammad Muhammad Taib rejoining Umno, Dr Wee said it was no big deal.

“We still have to pay attention to the general election. We still have to work and serve the people,” he said.

Muhammad left Umno in 2013 to join PAS and later left PAS to join PKR in 2015.

-The Star-