Most SME products not meeting supermarket standards

According to minister, they lack the basic requirements for display on shelves

By SHAHEERA AZNAM SHAH / Pic By ISMAIL CHE RUS

Products by small and medium industries are not being sold by retailers because they lack the basic requirements for display on shelves.

This is the main reason why small and medium enterprises (SMEs) have not been able to meet the government’s goal to have at least 30% of SME products being offered by retailers.

Rural and Regional Development Minister Datuk Seri Ismail Sabri Yaakob said local products currently represent only 15% of goods sold in Malaysia’s larger retail outlets.

“Local products occupy a small portion of total goods available by big retailers in the country.

“After our own review of the products, we find that many local products do not meet the minimum standards set by the hypermarkets.

“Improvement is still needed in aspects such as product presentation, details of nutrition information, quality of product ingredients, as well as consistency in production.

“These are among the hindrances faced by the products from entering bigger market,” he told reporters at the Karnival Usahawan Desa 2017 in Kuala Lumpur yesterday.

Last year, the Domestic Trade, Cooperatives and Consumerism Ministry announced a target to increase the number of local SMEs products to make up 30% of goods sold in supermarkets by 2020.

Ismail Sabri said in order to realise the target, the ministry has set several criteria for the local SMEs to be promoted under supervision of the Rural and Regional Development Ministry.

“We are prioritising basic components such as detailed nutrition facts, barcode label and halal logo to ensure the success rate.

“If the product does not have the basic required information, it is impossible to help them move further,” he said.

The Karnival Usahawan Desa 2017 — being held until Oct 22 in Kuala Lumpur — is organised by the Rural and Regional Development Ministry to highlight local products to a wider market.

Around 700 local enterprenuers are expected to make RM13 million in sales during the carnival.

“We have invited big retailers in Malaysia including AEON Co (M) Bhd and Mydin Mohamed Holdings Bhd to showcase the potential local products that could have done well in the hypermarket.

“At the same time, we hope to address the negative perception towards local SME products and the favouritism for established brands,” Ismail said.