The Government Business Support Services in Malaysia: the evolution and challenges in the new economic model

Over the years, the government business support services (GBSS) have worked closely along the government
policies and experienced a number of transformations to suit the current needs of the SMEs and business
environment. In order to understand the philosophy and the very nature of the GBSS in the present context it is
paramount to study the development of the services in the country over time. Hence this paper explores the
evolution of the GBSS, starting from prior independence period to the New Economic Policy era and in the
contemporary period. The study shows the government business involvement formerly started a few years back
before the independence. A humble beginning with the objectives to bring close ties between the rural folks and
the government had acted as a stepping stone to the glorious achievement of the GBSS. The quantum leap begun
in the NEP era as the current government had recognised the roles of entrepreneurship as a catalyst to the social
restructuring process. While understanding the evolution of the GBSS provides a background of the study, it is
paramount important to look at the challenges faced by GBSS in current situation. The new economic model
which was launched by the Prime Minister recently is aimed at moving the country towards high income
economy in ten years times. Coherently, the move is a big challenge to the GBSS as to better equip the
Malaysian SMEs with innovation, creativity and value-added activities. An important question is, do they ready
for the big game? The present paper is structured according to the following lines. First, a brief reviews the
establishment, roles and present functions of the GBSSs’ main players namely Majlis Amanah Rakyat (People
Council of Trust), SME Bank, GCG, SME Corporation and National SMEs Development Council. Second,
discusses the current issues and challenges that need to be addressed by the GBSS, and lastly discusses and
suggests viable strategies should be taken by the GBSS to remain relevant and successfully contribute to the new
economic model.