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2. BACKGROUND 2 Directive of implementation of SDSI Program 2006 was issued Source of power : Decision of the Malaysian Cabinet Meeting on 8 December 2004 ICU JPM is the secretariat and lead coordinator 1992 – 2003 Uncoordinated implementation by respective Ministries 2003 2002 1992 SATU KAMPUNG SATU INDUSTRI (SKSI) - Smaller scope at village levels SATU KAMPUNG SATU PRODUK (SKSP) - Family business SATU DAERAH SATU INDUSTRI (SDSI) - Extended scope to district and related industries for small and medium enterprise 2004 2006 Guidelines implementation of SDSI Program 2012 was issued THE EVOLUTION OF SDSI 2012

3. 3 To commercially develop products/services unique to a particular district To develop a creative and innovative society that produce commercially viable products/services for the domestic/global market Collaboration between public and private sectorsOutcome-based monitoring and evaluation Comprehensive and integrated implementation and coordination that includes the entire value chain Strengthen business process through a structured marketing mechanism SDSI : new and improved concept : CONCEPT OF SDSI

4. 4  To strengthen the SDSI Program in line with the national policy to support the achievement of the goal to become a developed and a high income nation by 2020. GUIDELINE OBJECTIVE To boost local products as a viable industry in line with the development of competitive entrepreneurs with a focus on the 3 pillars To establish a community of entrepreneurs who are creative and innovative through socio-economic activities in the community To create unique product in order to promote a particular district To create unique product in order to promote a particular district To establish durable and competitive small-medium size industries Objective ENTREPRENUER NDUSTRY PRODUCT

5. SDSI PRODUCT CLUSTERING FOOD & BEVERAGES PRODUCT CLUSTER HOMESTAY CLUSTER HANDICRAFT PRODUCT CLUSTER HEALTH PRODUCT & SERVICES CLUSTER PROMOTION, MARKETING AND ENTREPRENEURSHIP DEVELOPMENT CLUSTER 5 MONITORING COMMITTEE Each lead agency to play its own role to achieve : KPI 50% of the aspiring entrepreneurs to achieve the 3 rd MCORE level within 2 – 3 years period 5% of the aspiring entrepreneurs to change category from original to small/medium within 2 years period 50% of the champion products to achieve the 4 star rating from 3 star rating within 2 – 3 years period 5% of the champion products to achieve the 5 star rating within 2 years period

6. 6 INDUSTRY COMMUNITY VALUE CHAIN MANPOWER UNIQUE PRODUCT LOCAL RESOURCES INDUSTRY COMMUNITY VALUE CHAIN MANPOWER UNIQUE PRODUCT LOCAL RESOURCES PRODUCT RATING ENTREPRENEUR TRAINING & GUIDANCE REVOLVING CAPITAL MANAGEMENT ENHANCEMENT PRODUCT R&D QUALITY / STANDARDS MARKET EXPANSION BRANDING & PROMOTION ENTREPRENEUR RATING SDSI PRODUCT AND ENTREPRENEUR SDSI IMPLEMENTATION GUIDELINES

7. 7 PRODUCT – DEVELOPMENT PROGRESS TOWARDS ACHIEVING CHAMPION PRODUCT STATUS <50 LOW QUALITY <50 LOW QUALITY 50 – 69 LOW QUALITY 50 – 69 LOW QUALITY POTENTIAL TO BE DEVELOPED 70 – 79 MEDIUM QUALITY 70 – 79 MEDIUM QUALITY 80 -89 HIGH QUALITY 80 -89 HIGH QUALITY >90 HIGHEST QUALITY >90 HIGHEST QUALITY POTENTIAL TO BE DEVELOPED FOR EXPORT REQUIRE IMPROVEMENT FOR EXPORT PURPOSES EXPANSION FOR EXPORT PURPOSES 1 2 3* 4* 5* STAR RATING *SDSI PRODUCT BECOMES CHAMPION PRODUCT WHEN IT ACHIEVES THE STAR RATING OF 3 – 5 Product Star Rating : Lead Agency SDSI IMPLEMENTATION GUIDELINES

8. 8 Extension : One year for aspiring entrepreneur who does not achieve the 3 rd stage under MCORE Development 1st Phase : Basic and Establishment MCORE/SCORE Evaluation : To determine the category of the entrepreneur. Entrepreneurs registered as SME under SMECorp. Identification of the aspiring entrepreneur Development 2nd Phase : Enhancement and Advancement SCORE is used to determine the category of the aspiring entrepreneurs, either under the category of small/medium Pls refer to the criteria for determining SDSI entrepreneur/project SME Entrepreneurs Extension : 1 Year Aspiring Entrepreneurs : 2 Years SDSI Entrepreneurs Identified Entrepreneurs who are competitive to participate in the programs under the SME Corp. And TERAJU ENTREPRENEURS RATING Note : SCORE (SME Competitiveness Rating for Enhancement (SCORE) Programme) is a diagnostic tool used to measure and improve the competitive position of the SME companies MCORE (Micro Enterprise Competitiveness Rating for Enhancement) is used for Micro Enterprise Companies for the same purpose. SDSI IMPLEMENTATION GUIDELINES

9. 9 ● TO APPLY THE SME CRITERIA (SME CORP) ENTREPRENEUR – SME RATING NO. OF WORKERS < 5 VALUE OF SALES < RM250,000 NO. OF WORKERS = 5-50 VALUE OF SALES = RM250,000 – RM10 MILLIONS NO. OF WORKERS = 51-150 VALUE OF SALES = RM10 MILLIONS – RM25 MILLIONS Categories : Manufacturing, Manufacturing-related services and Agro based Industries NO. OF WORKERS < 5 VALUE OF SALES < RM200,000 NO. OF WORKERS = 5-19 VALUE OF SALES = RM200,000 – RM1 MILLION NO. OF WORKERS = 20-50 VALUE OF SALES = RM1 MILLION – RM5 MILLIONS Categories : Services, Primary Agriculture, and Information and Communication Technology (ICT) SDSI IMPLEMENTATION GUIDELINES

10. 10 SDSI IMPLEMENTATION GUIDELINES SDSI ENTREPRENEUR AND PRODUCT DEVELOPMENT FRAMEWORK 1 ST PHASE: BASIC AND ESTABLISHMENT2 ND PHASE:ENHANCEMENT AND ADVANCEMENT BASIC ESTABLISHMENT ENHANCEMENT ADVANCEMENT Improvement of premise Provision of Infrastructure Training and guidance Identification of raw materials Marketing and promotion R & D Compliance with the standards Market expansion Rebranding Increase in technology, production techniques and quality Capital development Management enhancement Achievement of product quality according to international standards Market expansion with the cooperation of the private sector and GLCs Becomes the Holding Company ASPIRING ENTREPRENEURSSDSI ENTREPRENEUR RANKED AS SME ROLE FOCUS ELEMENT Lead ministry/agency to play the lead role agency Coaching, mentoring and holding company  Coaching, mentoring and holding company  Entrepreneurs are encouraged to work in groups Ministry/Agency to provide advice/assistance in terms of loans/more collaboration with the SMECorp- it being the leader in the development of SMEs

11. 11 Implementation To comply with the new SDSI Implementation Guidelines To monitor and to ensure that the SDSI Program is on the meeting agenda at the Ministry level and the report is presented at the meetings of the relevant committee To identify and register the SDSI entrepreneurs according to the clusters under the lead agencies To assist the agencies at the state level to do the evaluation i.e. MCORE/SCORE and the product star rating Monitoring To monitor the progress of the aspiring entrepreneurs and the progress of the product development To ensure that the aspiring entrepreneurs get the help/advice according to the needs of the project. ROLES OF LEAD AGENCIES / MINISTRIES SDSI IMPLEMENTATION GUIDELINES

12. 12 Implementation To comply with the SDSI Implementation Guidelines (State and district level) To monitor and to ensure that the SDSI Program is on the meeting agenda at the Ministry level and the report is presented at the meetings of the relevant committee To identify and register the SDSI entrepreneurs according to the clusters under the lead agencies To perform MCORE/SCORE evaluation and the product star rating Monitoring To monitor the progress of the aspiring entrepreneurs and the progress of the product development To ensure that the aspiring entrepreneurs get the help/advice according to the needs of the project To match make the aspiring entrepreneur with the existing industries (grooming) THE ROLES OF THE STATE The national KPI for each state to perform the MCORE/SCORE is to have at least 5 entrepreneurs. SDSI IMPLEMENTATION GUIDELINES

13. 13 PREVIOUSLY : SDSI Program Coordination Mechanism, Directive Implementation of the SDSI Program JPM 2006 IMPLEMENTATION COORDINATION MACHINERY SDSI IMPLEMENTATION GUIDELINES Working Committee (respective Agencies) Working Committee for Food Product (MOA) Working Committee for SAWARI (FELDA) Working Committee for Homestay (MOTOUR) Working Committee for Craft Product (KKKW) Working Committee for Entrepreneur Development (MECD) Working Committee for Marketing and Promotion (MECD) Working Committee for the Cottage Industry (KKLW) National Committee Chairman : Deputy PM Secretariat : ICU JPM Committee at Agency Level Chairman : DG ICU Secretariat : ICU JPM Committee at State Level Chairman : CM/EXCO/SUK Secretariat : SDO Committee at District Level Chairman : District Officer Secretariat : DO/Residence Office

14. 14 COORDINATING MECHANISM NATIONAL DISTRICT STATE MINISTRY SDSI IMPLEMENTATION GUIDELINES NEW

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