Cluster Head : Prof. Madya Chin Yee Whah

Committee members      :  (1) Prof. Madya Shahrul Kamaruddin – Co-chairman
                                                (2) Prof. Madya Ishak Haji Abdul Azid
                                                (3) Prof. Madya Low Heng Chin
                                                (4) Dr. Abdul Rahim Othman
                                                (5) Encik Lim Ka Teik
Secretary                             : (6) Pn. U. Seeta a/p Uthaya Kumar

INTRODUCTION

The SME Assist concept was formulated in August 2009 in the context of university-industry engagement. Small Medium Enterprises (SMEs) have been acknowledged as an important driving force of the economy in many countries. Previous researches show that much effort have been taken by various parties and governments of different countries to help improve and transform SMEs to be competitive in the fast changing global economy. In Malaysia, there are different models or approaches adopted and implemented by various parties. However, SME competitiveness remains an issue of concern. In Universiti Sains Malaysia (USM), under its new philosophy of university-industry engagement, researchers have begun to look into the above-mentioned issue and experimenting a model to help to accelerate the transformation of local SMEs. A model, dub SME Assist is in the evolving stage of actual application and concurrent research to strengthen the competitive capability of local SMEs in three different phases. The model is based on the research finding that the sustainable growth of SMEs is constraint by four major challenges such as ICT, marketing, finance and skill of knowledge. The concept of the model is to develop a low cost engagement application research team that will continue to engage with the industries to strengthen the four major weaknesses through strategic priority and through leveraging and structuring the motivation, strength and weaknesses of various stakeholders. In the process of engagement, the near term and long term needs of the industries will be addressed. The knowledge gained from the process of engagement will be extracted, re-used and improved.

OBJECTIVES

The overall objective of the SME Assist is to strengthen the competitive capability of local SMEs in the global arena at three different phases.

• Phase 1 involves piloting the development of the culture of basic Kaizen capability of SMEs;
• Phase 2 involves cloning and sustaining the success of the piloted approach; and
• Phase 3 is to achieve a world class capability and growth.

The SME Assist is at its formation stage. The SME Assist team is currently developing and testing on a model, which is anticipated to assist SMEs participating in the SME Assist program. At present, the SME Assist team is working on 10 projects: Five SMEs participating in the SME Assist program and five SMEs participating in the assessments and LEAN transformation projects with a multinational company in Penang. From the current SME involvement, SME Assist and contributions from Universiti Sains Malaysia’s (USM) resources, we hope to develop our core competencies by leveraging on a least cost model.

The SME Assist team is currently capitalizing on the transfer of knowledge through a network of retirees, engaging with experts (or consultants), academicians and graduate students from various disciplines in USM. To achieve the goal, the principal agent is the retirees who have vast experience and network with the industry. There are many studies emphasising trust as one of the best practices in business deals. With regards to this, relationship that has been established over the years between the retirees [from multinational companies (MNCs)] and SMEs (contract manufacturers) is the key to approach SMEs that have real needs.