KOTA KINABALU, Dec 13 (Bernama) -- Small Medium Enterprises (SMEs) have been accorded special focus in the second phase of the Sabah Development Corridor (SDC), said Sabah Chief Minister, Datuk Seri Musa Aman Tuesday.

He said during the five-year implementation of the second phase until 2015, the Sabah Economic Development and Investment Authority (SEDIA) would be supporting the creation of a viable environment to create vibrant SME development in the state.

This will be done, he added, by providing greater focus on strengthening SMEs, rural entrepreneurs, agro-entrepreneurs and start-ups identified under the SDC initiatives.

"The entry of new entrepreneurs, especially start-ups in knowledge-intensive sectors, which can serve as new growth sources such as biotechnology, oil and natural gas, creative industries and green technology, will be promoted.

"SEDIA will customise special incentives designed to promote science-industry linkages in order to encourage anchor companies as well as start-ups having knowledge-intensive industries to invest in the SDC initiatives," he said when opening the seminar on, SDC: Promoting SMEs and Entrepreneur Development in Sabah, here.

The text of his speech was delivered by Deputy Chief Minister, Tan Sri Joseph Pairin Kitingan.

Musa said SEDIA would also establish incubators and business links to support the development of start-ups, SMEs, agro-entrepreneurs and techno-entrepreneurs in the knowledge-intensive sector to spawn development of new sources of growth in line with the Economic Transformation Programme.

He said SMEs represented 99.2 per cent of total active business establishments nationwide, which gave them the potential of becoming among the key drivers in transforming the country towards an innovation-led economy.

Musa said since 2004, SMEs had consistently outperformed overall national economic growth at an average of 6.3 per cent, compared with the 4.5 per cent in average annual Gross Domestic Product (GDP) expansion, helping stabilise economic growth during periods of financial crisis.

-- BERNAMA