KUALA LUMPUR, June 14 (Bernama) -- Malaysian small and medium enterprises (SMEs) have been urged to improve productivity in line with the country's aspiration to attain developed nation status by 2020.

Deputy Finance Minister Datuk Ir Donald Lim Siang Chai said that based on recent research studies, the productivity of Malaysian SMEs was far behind other countries.

"Programmes such as the Golden Bull Award, aimed at benchmarking successful SMEs, will encourage them to work harder to gain better recognition and develop their competitiveness," he said at the official launch of the Golden Bull Award here Tuesday.

The Golden Bull Award, he said, would also complement the government's effort in promoting and strengthening the development of a high performance and resilient SME sector.

In Malaysia, Lim said, SMEs were an important segment of the economy, representing 99.2 per cent of total business establishments.

"These establishments contribute 31.4 per cent to the country's GDP, 56.4 per cent to employment and account for 19 per cent of exports," he said.

Therefore, the development of a strong and dynamic SME sector was a priority on the national agenda, he said.

Meanwhile, he said the government had approved RM5.9 billion this year for 219 programmes under the SME Integrated Plan of Action.

-- BERNAMA