Media Centre

In the next three to five years, nearly 50 per cent of Malaysian small- and medium-sized enterprises (SMEs) will lose out to their competitors and even shut down if they donâ‘t give priority to brand development, quality packaging and creative design.

This warning comes from the president of Limkokwing University College of Creative Technology, Tan Sri Dato’ Lim Kok Wing, who expresses concern over the performance and survival of local SMEs.

“Our SMES must be more competitive at a time when the pace of globalisation is accelerating,” says Tan Sri Lim. “Reforms implemented by the World Trade Organisation and the economic progress of other Asean countries will affect their future.”

One way to make greater strides in sharpening the competitive edge is for SMEs to build up their brand names. This effort will also raise the value of products.

Research vital

“Many will not survive unless they focus on brand development,” he cautions. “Normally, it takes five years to develop and promote a brand.”

In his opinion, research and development is equally important. Through R&D, local SMEs can improve the quality of their products and services.

“Unfortunately, most SMEs think that R&D is wasteful,” he says. “It is a good, long-term investment that will yield returns, and SMEs cannot do without it. They have the money for R&D, but they spend it on other items.”

Malaysia’s branding and packaging development is relatively slow, he notes. “The world’s packaging market in 2004 was worth RM1.5 billion. If Malaysia can secure 10 per cent of the market, the revenue will be very good.”

Malaysian companies also overlook the importance of copyright. Only three per cent of the copyright registered comes from Malaysian firms while the rest is from foreign companies.

“Our SMEs are the country’s power of growth,” says Tan Sri Lim. “They can play a big role in turning Malaysia into a major packaging centre.”