08 Jun '11, 4pm

M'sia SMEs urged to innovate

KUALA LUMPUR: Small and medium enterprises in Malaysia are being urged to innovate to overcome rising costs. This comes as the government cuts subsidies and raises energy tariffs on June 1 to rein in a ballooning subsidy bill that's expected to hit US$7 billion this year. ProEight Offshore managing director Ir Azhar Zainal Abidin said while hard work is important, innovation is key to competing in the challenging economic environment. ProEight is said to be one of five companies in the world that manufactures mechanical seals for the petrochemical industry. "It does not mean that electricity is the sole component for cost, productivity, innovation and speed of doing business," Mr Azhar said. "The electricity tariff will increase 10 per cent -- it's not going to make a dent in our competitiveness." It's a double whammy for export reliant SMEs. They've also been saddled with...

Full article: http://www.channelnewsasia.com/stories/corporatenews/view...

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