Business Incubation in Malaysia

Abstract

The purpose of this chapter is to present the importance and contribution of business incubation programmes to Small and Medium Enterprises in Malaysia. Chapter starts with a brief review of the history and transition of major economic policies in Malaysia as well as the government responses towards achieving the status of fully developed nation by the year 2020. The policy review includes the Laissez-faire Policy, New Economy Policy, National Development Plan, National Vision Policy, and New Economy Model which were set to achieve nation's rapid economic growth. This review leads the paper towards the exploration of the major drivers of current economic growth in Malaysia. This chapter identifies Multimedia Super Corridor as the most important initiative and a key driver to global Information Communications Technology development as well as the major contributor to Small and Medium Enterprises establishment in Malaysia. In addition, it outlines the significant contribution of Small and Medium Enterprises to the economic growth in Malaysia, and finally identifies business incubators as a support mechanism to accelerate the SMEs success, especially the start-up firms. This chapter provides knowledge to the researchers and practitioners on the linkages among Multimedia Super Corridor, Small and Medium Enterprises and incubators that align with the economic policy development. As a conclusion, the chapter discusses the challenges faced by the incubation programmes in Malaysia and thus, highlights the prominence of business incubators as a niche subject to be explored in depth, in terms of their growth and potentials in Malaysia.