Developing SMEs In eCommerce

8 (1) Perception and knowledge issues facing ICT adoption among the SMEs Lack of trust for buyers and unknown suppliers in cyberspace Lack of trust in...

0 downloads 215 Views 3MB Size
Developing SMEs In eCommerce En. Zaky Moh Senior Director SME Corp. Malaysia 10th June 2016 eCommerce Day

1

Landscape of SMEs in Malaysia

SMEs are the backbone of the economy… • SMEs account for large proportion of businesses in Malaysia: - 97.3% of establishments (645,136) - Size wise 77% microenterprises, with < 5 workers micro 75%

662,939 companies small 19% large medium 3% 3% Source: Economic/SME Census 2011, Malaysia 3

17.8%

65%

35.9%

Global e-Commerce sales have reached $1.0 trillion in 2015 with double digit sales growth in all continents… E-Commerce Sales Growth (2015, USD, % sales growth compared to 2010)

China: $ 293 Bn.

United States: $ 271 Bn.

15%

86%

52%

79% EU $ 158 Bn.

15%

Japan: $ 69 Bn.

75%

14% ASEAN $ 9 Bn.

World: $ 1 Tn. 24%

29%

45%

60%

$ E-Commerce Sales

81%

ASEAN accounts for only <1% of global sales

Sales Growth

Online Buyer Penetration

Source: Euromonitor, Statistica, A.T. Kearney estimates

4

In Malaysia, e-business/ICT adoption is still relatively low  Most respondents run their businesses using Computer / laptop / notebook / tablets but still low in other ICT tools services

ONLY 19.6% of SMEs are involved in doing business online Did not sell products or services online 80.4%

Computer / laptop / smartphone, 92.6% Internet, 33.3%

Sell products or services online 19.6%

2,336 respondents

Source: 3Q 2015 SME Corp. Malaysia Survey

5

Main issues affecting adoption of e-business and e-commerce in distributive trade SMEs

1 Perception & Knowledge

3

2 Cost of Network

Lack of process innovation

6

(1) Perception and knowledge issues facing ICT adoption among the SMEs Barriers in the form of perception and mentality towards adopting the Internet and e-business

Lack of knowledge in areas of ICT, which affects their willingness to adopt the Internet or e-business

Perception on the lack of ICT support within the industry

SMEs are risk adverse, most lack the knowledge on benefits of using Internet for business or adopting e-business Source: Study on Domestic Assessment on Internet and E-Business Adoption in Malaysian Small and Medium Enterprises, commissioned by Multimedia Development Corporation, 2014 n= 609

7

(1) Perception and knowledge issues facing ICT adoption among the SMEs Lack of trust for buyers and unknown suppliers in cyberspace

Lack of trust in IT solutions and services providers

SMEs perceive that they still need to rely on IT personnel to set-up, maintain and manage the e-business for them

Most not aware of available Government support and assistance for ICT adoption and e-business Source: Study on Domestic Assessment on Internet and E-Business Adoption in Malaysian Small and Medium Enterprises, commissioned by Multimedia Development Corporation, 2014 n= 609

8

Recommendation to address lack of ICT adoption & innovation • Soft loans for ICT (SLICT) was introduced under RMK-8. • SLICT was then merged under Soft Loans for SME (SLSME) in 2010 • As at 31 January 2016, RM11.98 million has been approved and RM9.14 million has been disbursed.

4

Mechanisation (Office Equipment & Machinery, etc)

…able to reduce foreign unskilled labour with automation & mechanisation via Business Accelerator Programme (BAP)

…particularly catering to SMEs in the wholesale & retail trade and related services sub-sectors

1

Increase ICT Adoption (E-Business)

…increase innovation in ICT adoption and creativity

• Status of GST e-Voucher as at 31 December 2015- RM 92.6 million has been disbursed

Recommendations

3

Automation (Retail Outlets, Warehouses, Supply Chain Mgmt, etc)

2

Adoption E-Commerce & E-Payment …increase productivity and efficiency of operation

• BAP2.0: Matching grant for Online application, Mobile E-Commerce, EPayment & ICT Application

9

Existing ICT/e-business initiatives – ePayment Programme for SMEs

Merchants/SME

Third Party Acquirer (TPA)

Customer

Merchant/SME (Online Business

Acquiring Bank

To Encouraged Cashless Transaction..

Mobile

EDC Terminal

Online Payment Gateway

Encouraged Cashless Buying Platform

Implementation Mechanism : • Contact Third Party Acquirer ( TPA) • Select Suitable Package • Rebate / Financial Assistance RM500

List of Third Party Acquirer (TPA) ManagePay Services Sdn. Bhd. www.managepay.com

E-Pay (M) Sdn Bhd www.e-pay.com.my

Revenue Solution Sdn. Bhd. www.revenue.com.my

GHL Payment Sdn Bhd www.ghl.com

GHL CardPay Sdn Bhd www.ghl.com

GHL ePayment Sdn Bhd www.e-ghl.com

iPay88 Sdn. Bhd www.ipay88.com

MOLPay Sdn. Bhd www.molpay.com

Fass Payment Solutions Sdn Bhd www.fasspay.com

MobilityOne Sdn Bhd www.mobilityone.com.my

Details are available at www.smecorp.gov.my

Target Group Targeted Group

Holistic Capacity Development Programme through Business Accelerator Programme (BAP 2.0) Create critical mass of dynamic, competitive & resilient SMEs

Diagnose and identify strengths & weaknesses of SMEs

BAP

Business advisory and recommend action plan

Financial Assistance

Capacity Building Enhance capabilities of SMEs through improvement activities which partly funded under the grant scheme

Soft Loan Scheme



SMEs 2-star (SCORE) and above

Micro Enterprises of level 3 & below (M-CORE)

In collaboration with In collaboration with

Monitor & Evaluate

BAP: Business Accelerator Programme E2: Enhancement & Enrichment Programme

14

Component & Eligibility Under BAP 2.0 for SMEs Online Applications, Mobile e-commerce, e-payment & ICT applications • Development of Eligibility eCommerce modules on existing of Grants website (e.g. shopping cart) with maximum grant of RM10,000

Way Forward ...by stepping-up collaboration with Ministries & Agencies and ICT solution providers on e-business adoption Broadband and IT solution providers • • • •

Microsoft MIMOS (IoT) Telekom Malaysia Maxis, Digi, Celcom, etc • PayPal • Google • etc

…a culture of adopting e-business amongst SMEs

ICT Adoption Among SMEs

SME Corp Role – eCommerce Roadmap: • Increased promotion / marketing of eCommerce to SMEs; • Increased scale & effectiveness of eCommerce training for SMEs.

Government Agencies • • • • •

SME Corp. Malaysia MDeC MCMC KPDNKK etc Industries (Verticals)

• Wholesalers (B2B) • Retailers (B2C) E-Shop Providers • • • •

MDEX.my Lelong.com.my eBay Malaysia Etc. 16 16

www.smeinfo.com.my www.smecorp.gov.my SME Annual Report 2014/15

SME Corp. Malaysia 1-300-30-6000 Physical

KL Sentral