SMALL AND MEDIUM ENTERPRISES CORPORATION MALAYSIA ACT 1995

The objective of the Council is to ensure the comprehensive and co-ordinated development of small and medium enterprises across all sectors of the economy.

Composition of the Council 2b. (1) The Council shall consist of the following members:

In addition to the persons mentioned in subsection (1), the Chairman may appoint the following persons as members of the Council:

The members referred to in paragraphs (2)(a), (b), (c), (d)

and (e)—

The Corporation shall act as Secretariat to the Council.

Functions of the Council 2c. (1) The Council shall have the following functions:

The Council may, from time to time, give directions to the

Corporation which are consistent with the provisions of this Act and the Corporation shall give effect to such directions.

The Council may perform any other function that is incidental or consequential to any of the functions specified in subsection (1) and do all such things as may be necessary or expedient for carrying out its functions under this Act.

The Council shall meet as and when a meeting is convened by the Chairman of the Council but not less than once a year.

The Council may determine its own procedure.

a Chairman;

a Deputy Chairman who shall be a representative from the Ministry of International Trade and Industry;

a representative of the Ministry of Finance;

a representative of the Economic Planning Unit of the

Prime Minister’s Department;

three representatives from the chambers of commerce;

a representative from the manufacturing sector;

a representative from the services sector;

a representative from the agriculture sector;

the Chief Executive Officer of the Corporation; and

such other members, not exceeding six, as the Minister may determine.

The members of the Corporation shall be appointed by the

Minister and subject to sections 5 and 6, shall, unless they sooner resign or their appointment is sooner revoked, hold office subject to such terms and conditions as the Minister may determine.

The provisions of the Schedule shall apply to the Corporation.

Small and Medium Enterprises

Corporation Malaysia 13

Tenure of office

A member of the Corporation may at any time resign from his office by giving notice in writing to the Minister.

Temporary exercise of functions of the Chairman

Until an appointment is made under subsection (1) or in default of such appointment, the member appointed under paragraph 4(1)(b) shall exercise the functions of and be deemed to be the Chairman of the Corporation.

Alternate members

When attending meetings of the Corporation, an alternate member shall for all purposes be deemed to be a member of the Corporation.

An alternate member shall, unless he sooner resigns or his appointment is sooner revoked, cease to be an alternate member if the member for whom he is an alternate member ceases to be a member of the Corporation.

Revocation of appointment

there has been proved against him, or he has been convicted on, a charge in respect of—

an offence involving fraud, dishonesty or moral turpitude; or

he becomes a bankrupt or has made an arrangement with his creditors;

he has been found or declared to be of unsound mind or is otherwise incapable of performing his duties or managing his affairs; or

at three consecutive meetings of the Corporation, without leave in writing of the Minister, he has neither been present nor represented by the alternate member, if any, appointed in his respect.

The provisions of subsection (1), other than paragraph (d), shall apply mutatis mutandis to an alternate member.

Small and Medium Enterprises

Corporation Malaysia 15

Filling of vacancies

to co-ordinate, monitor and evaluate the implementation of the policies, strategies and programmes for small and medium enterprises across all sectors of the economy in line with the objectives of the Council;

to undertake studies related to the development of small and medium enterprises across all sectors of the economy;

to co-operate with Government ministries and agencies in the implementation of the policies, strategies and programmes for small and medium enterprises across all sectors of the economy;

to become the centre for collection, reference and dissemination of information related to small and medium enterprises across all sectors of the economy;

to furnish annual reports on small and medium enterprises across all sectors of the economy to the Council;

to act as the Secretariat to the Council; and

16

Act 539

in the manufacturing and services sectors—

to undertake promotional activities to promote the growth of small and medium enterprises;

For the purposes of this section, “services” means all services except banking, insurance, real estate and the business of dealing in securities.

Powers of the Corporation

to establish and maintain branch offices with the approval of the Minister;

to appoint agents or obtain services for the purpose of carrying out its function under this Act;

to establish, maintain and manage a database and information system on small and medium enterprises across all sectors of the economy which includes the profile, economics and statistical data on the development programmes from any ministry or agency;

to acquire and hold venture capital in any company with the approval of the Minister;

(da) to give grants or other financial assistance to small and medium enterprises across all sectors of the economy;

Small and Medium Enterprises

Corporation Malaysia 17

(db) to require the furnishing of information by small and medium enterprises across all sectors of the economy on matters relating to their business other than information no other member, officer, employee, agent or person has by any means access to it;

to organize promotional activities for small and medium enterprises across all sectors of the economy such as participation in trade exhibitions, seminars and conferences in Malaysia and abroad;

to publish or sponsor the publication of periodicals, booklets and information materials in any media; and

to charge a fee for the use of any facilities or services provided by the Corporation.

Power to borrow

Without prejudice to the generality of subsection (1) and to the other provisions of this Act, the Corporation may delegate to either the Chairman or to the Chief Executive Officer authority to sanction expenditure from the Fund or any other moneys vested in or under the control of the Corporation up to such limit as the Corporation shall specify.

Power to appoint committees

The committee so appointed shall regulate its own procedure.

Any committee so appointed shall conform to any instructions from time to time given to it by the Corporation and the Corporation may at any time discontinue or alter the constitution of any committee so appointed.

Small and Medium Enterprises

Corporation Malaysia 19

The committee may invite any person who, in its opinion, is possessed of special knowledge of advantage to it, to attend any meeting of the committee and the person so invited shall not be entitled to vote at any such meeting.

The committee shall report its recommendations to the

Corporation.

Power to establish companies 17a. The Corporation may, from time to time, with the approval of the Minister and the concurrence of the Minister of Finance, establish companies by such names as the Corporation may determine to carry out and have the charge, conduct and management on behalf of the Corporation of any project, scheme or enterprise determined by the Corporation in the discharge of its functions and the exercise of its powers.

There shall be paid into the Fund—

In this section and section 20, the expression “loan funds”

means such sums as may be made available from time to time to the Government by way of loan.

Expenses to be charged on the Fund

the payment of any expenses lawfully incurred by the

Corporation, the remuneration of officers and servants appointed and employed by the Corporation, including superannuation allowances, pensions or gratuities;

the payment of any charges on any amount which may be allocated to the Corporation from loan funds;

paying any other cost or expenditure properly incurred by the Corporation in the execution of its duties or in the discharge of its functions including fees and costs for professional services rendered to the Corporation;

repaying any moneys borrowed under this Act and the interest due thereon;

(da) the disbursement of grants or other financial assistance under this Act;

(db) the granting of loans under section 14a;

Small and Medium Enterprises

Corporation Malaysia 21

the making of loans to officers and servants of the

Corporation for purposes approved by the Minister; and

generally, paying any expenses for carrying into effect the provisions of this Act.

Balancing of revenue account

Before the beginning of September of each year, the

Corporation shall submit to the Minister an estimate of its expenditure (including those for development projects) for the following year in such form and containing such particulars as the

Minister may direct; and the Minister shall before the beginning of the following year, notify the Corporation of the amount authorized for expenditure generally or of amounts authorized for each description of expenditure.

22

Act 539

The Corporation may at any time submit to the Minister a supplementary estimate of expenditure for any one year and the Minister may allow the whole or any part of the additional expenditure included therein.

Statutory Bodies (Accounts and Annual Reports) Act 1980

has failed to collect any moneys owing to the Corporation for the collection of which he is or was responsible;

is or was responsible for any improper payment of moneys from the Corporation or for any payment of such moneys which is not duly approved;

is or was responsible, directly or indirectly, for any deficiency in, or for the destruction of, any moneys, stamps, securities, stores or other property of the

Corporation;

being or having been an accounting officer, fails or has failed to keep proper accounts or records; or

has failed to make any payment, or is or was responsible for any delay in the payment, of moneys of the Fund to any person to whom such payment is due under any law or under any contract, agreement or arrangement entered into between that person and the Corporation.

The Corporation shall, before such person is surcharged serve on him a written notice calling on him to show cause why he should not be surcharged.

Small and Medium Enterprises

Corporation Malaysia 23

If a satisfactory explanation is not received within fourteen days from the date of service of the aforesaid notice, the Corporation may—

The Chief Executive Officer shall notify the person surcharged in respect of any surcharge made under subsection (3).

Notwithstanding subsections (3) and (4) the Corporation may at any time withdraw any surcharge if it appears that no surcharge should have been made, and the Chief Executive Officer shall forthwith notify the person surcharged of such withdrawal.

The amount of any surcharge made under subsection (3)

and not withdrawn under subsection (5) shall be a debt due to the

Corporation from the person surcharged and may be sued for and recovered in any court at the suit of the Corporation and may also if the Corporation so directs be recovered by deduction from—

Notwithstanding the provision of subsection (1), the

Corporation shall not establish or modify any post or scheme of service for officers and servants of the Corporation, including the terms and conditions of service and the salaries, any pension scheme, and any scheme relating to allowances and other remuneration, without the prior approval of the Ministry of Finance and the

Public Services Department.

Discipline of officers and servants

two members to be elected by and from the members of the Corporation, one of whom shall be elected Chairman;

and

the Chief Executive Officer.

Small and Medium Enterprises

Corporation Malaysia 25

The Disciplinary Board of the Corporation established under subsection (1) shall be the disciplinary authority in respect of every officer and servant of the Corporation other than the

Chief Executive Officer.

The Chief Executive Officer shall not be a member of the Disciplinary Board in any proceedings before it in which he is the complainant; his place shall be taken by a member to be elected by and from members of the Corporation.

In the exercise of its disciplinary functions and powers, the Disciplinary Board shall have the power to impose such punishment as may be provided for under regulations made under section 32.

The procedure for disciplinary proceedings shall be in accordance with regulations made under section 32.

The Disciplinary Board may, subject to subsection (7), delegate any of its disciplinary functions and powers to any committee of officers or servants of the Corporation to be known as the Disciplinary Committee, in respect of any particular officer or servant of the Corporation, or in respect of any class or category of officers or servants of the Corporation, and the committee delegated with such functions and powers shall carry out, exercise or discharge them under the direction and control of the Disciplinary Board which shall have the power to review, rescind or vary any decision or finding of such committee.

No delegation shall be made under subsection (6) so as to enable an officer or servant of the Corporation to be a member of any Disciplinary Committee which may exercise any disciplinary authority action over an officer or servant who is superior to him in rank.

Any officer or servant of the Corporation who is dissatisfied with the decision of the Disciplinary Board or of any Disciplinary

Committee delegated with functions and powers under subsection

may, within fourteen days appeal in writing against such decision to the Corporation which may thereupon affirm, reverse or give such directions accordingly on the matter as it deems fit and proper.

26

Act 539

When the Corporation considers any appeal under subsection (8), no member of the Disciplinary Board or of the

Disciplinary Committee, as the case may be, against whose decision the appeal is made, shall be present in any proceedings relating to that appeal.

The decision of the Corporation upon such appeal shall be final and conclusive.

Public Authorities Protection Act 1948

Without prejudice to the generality of the foregoing, such regulations may be made for—

Without prejudice to the generality of the provisions of subsection (1), the Corporation shall, as soon as practicable after the end of each financial year, cause to be made and transmitted to the Minister a report dealing with the activities of the Corporation during the preceding financial year and the report shall be in such form and shall contain such information relating to the proceedings and policies of the Corporation as the Minister may from time to time specify.

Small and Medium Enterprises

Corporation Malaysia 29

Power of the Minister to give directions