KUALA LUMPUR: The recently-tabled 2012 Budget will help small and medium-sized enterprises (SMEs) as well as entrepreneurs seek financial backing to start up a business or to strengthen their current business.

SME Corporation Malaysia chief executive officer Datuk Hafsah Hashim said the role of SME Corp is to ensure that the SMEs partake in and are able to access the funds allocated to them. 

"There are funds for rural development, which are under the Amanah Ikhtiar Malaysia. There are also funds from banks, which are syariah-compliant," said Hafsah.

She added that there are funds for SMEs that are in distress or for those who need emergency financing.

She noted that all these funds are being coordinated and resided in various ministries and agencies.

Hafsah told reporters this at the opening ceremony of the Asia Pacific Economic Cooperation Young Entrepreneurs' Summit 2011 (Apec-Yes 2011) here yesterday.

The event was jointly organised by the Ministry of International Trade and Industry, SME Corp and the International Malaysia Chamber of Commerce.

Among the fresh funds introduced in the budget are the RM2 billion syariah-compliant SME Financing Fund and the RM100 million SME Revitalisation Fund.

The revitalisation fund offers soft loans, capped at a maximum of RM1 million, for entrepreneurs to revive their business.

Additionally, there is the RM10 million SME Emergency Fund to assist those affected by natural disasters as well as the RM500 million syariah-compliant Commercialisation Innovation Fund.

Meanwhile, Apec-Yes 2011, which was launched by Deputy Prime Minister Tan Sri Muhyiddin Yassin, aims to foster entrepreneurship.

Also at the launch was Deputy International Trade and Industry Minister Datuk Mukhriz Mahathir. 

The summit's other goals are to promote the development of new business establishment as well as to create conducive environment for developing potential entrepreneurs and SMEs in Apec economies.

As such, it is focused on business developments in various fields, such as art and creativity, innovation and environmental technologies, wholesale and retail sectors, fashion, beauty products and logistics management.

In his speech, Muhyiddin said young entrepreneurs can become pioneers and leaders in the government's commitment towards strenghtening the economy's competency in research and development, technology and innovation.

He pointed out that young entrepreneurs are better positioned to adopt innovations due to their knowledge and inquisitive nature as well as their abilities to keep abreast with the latest information and technological applications.

The development of innovative and creative SMEs is a key element in transforming Malaysia's economic structure towards becoming high-income nation, he said.

The deputy prime minister also said that under the Malaysian SME Masterplan (2011-2020), the country wants to expand the number of high-growth and innovative firms by encouraging greater innovation as well as adoption of technology among SMEs. 

Encouraging the growth of SMEs is crucial as they currently form the backbone of the Malaysian economy. A staggering 99.2 per cent of total active business establishments in Malaysia are from the SME sector.

With this in mind, Mukhriz said, it is important to cultivate an environment where businesses can flourish and entrepreneurs are encouraged to do what they are good at, such as to create wealth and deliver prosperity.

"The focus on entrepreneurship is important because it is entrepreneurs, not governments, who create wealth. Wealth is created when firms make profits and then the profits are used to build roads, schools, hospitals and so on," he said.