JOHOR BARU: Small and medium enterprises (SMEs) are encouraged to widen their network of contacts internationally in order to be able to compete globally.

Tebrau MP Teng Boon Soon urged SMEs to upgrade themselves and widen their scope of contacts to not only local but potential foreign markets.

“These companies should be supported and facilitated by the Government for collaboration between local and foreign SMEs so that mutual benefit can be achieved.

“SMEs will play a crucial role towards making the nation’s aim in achieving a high-income economy status by 2020 a reality,” he said adding that, commercial banks should not be over cautious when granting loans to SMEs to aid them in their business.

Teng, launching the SME Recognition Award 2010 road show and financial seminar here recently, said that to achieve the status of a high-income nation, the economy should be knowledge and technology-driven as opposed to investment-driven.

“SMEs should also look into more innovative and dynamic ways to expand and widen their market.

“They must improve themselves to sustain their business in the highly-competitive SME market,” he said.

SMI Association of Malaysia national president Chua Tiam Wee said that the road show was part of the association’s efforts to promote the award to recognise outstanding SMEs in the country.

“Johor Baru was the third stop in the road show programme and we will soon be stopping in other states and towns such as Melaka, Seremban, Kluang, Batu Pahat, Muar, Kelantan and Kuala Terengganu.

“We hope to take opportunity to disseminate information through the SME Financial Solutions seminars in selected main cities,” he said.