SMALL AND MEDIUM ENTERPRISES CORPORATION MALAYSIA ACT 1995

Small and Medium Enterprises Corporation Malaysia LAWS OF MALAYSIA REPRINT Act 539 SMALL AND MEDIUM ENTERPRISES CORPORATION MALAYSIA ACT 1995 As at 1 November 2021 PUBLISHED BY THE COMMISSIONER OF LAW REVISION, MALAYSIA UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968 2021 1 2 Act 539 Laws of Malaysia SMALL AND MEDIUM ENTERPRISES CORPORATION MALAYSIA ACT 1995 Date of Royal Assent ... … … … 19 October 1995 … … … 2 November 1995 Latest amendment made by Act A1358 which came into operation on ... … … … 2 October 2009 Date of publication in the Gazette ... PREVIOUS REPRINT First Reprint … … … … … 2002 Second Reprint … … … … … 2006 Small and Medium Enterprises Corporation Malaysia LAWS OF MALAYSIA Act 539 SMALL AND MEDIUM ENTERPRISES CORPORATION MALAYSIA ACT 1995 ARRANGEMENT OF SECTIONS Part I PRELIMINARY Section 1. Short title 2. Interpretation Part Ia THE COUNCIL 2a. Establishment of the Council 2b. Composition of the Council 2c. Functions of the Council Part II THE CORPORATION 3. Establishment of the Corporation 4. Composition of the Corporation 5. Tenure of office 6. Revocation of appointment and resignation of members 7. Temporary exercise of functions of the Chairman 8. Alternate members 9. Revocation of appointment 3 4 Laws of Malaysia Act 539 Section 10. Filling of vacancies 11. Allowance Part III FUNCTIONS AND POWERS OF THE CORPORATION 12. Functions of the Corporation 13. Powers of the Corporation 14. Power to borrow 14A. Power to grant loans 15. Power to engage 16. Power to delegate 17. Power to appoint committees 17A. Power to establish companies Part IV FINANCIAL PROVISIONS 18. Small and Medium Enterprises Development Fund 19. Expenses to be charged on the Fund 20. Balancing of revenue account 21. Deposit and investment of the Fund 22. Expenditure and preparation of estimates 23. Statutory Bodies (Accounts and Annual Reports) Act 1980 24. Surcharge Part V ADMINISTRATION 25. Appointment of Chief Executive Officer 26. Remuneration for Chief Executive Officer 27. Duties of the Chief Executive Officer 28. Appointment of officers and servants of the Corporation Small and Medium Enterprises Corporation Malaysia Section 29. Discipline of officers and servants 30. Public Authorities Protection Act 1948 31. Public Servants Part VI GENERAL 32. Regulations 33. Returns, reports, accounts and information 34. Power of the Minister to give directions SCHEDULE 5 6 Laws of Malaysia Act 539 Small and Medium Enterprises Corporation Malaysia LAWS OF MALAYSIA 7 Act 539 SMALL AND MEDIUM ENTERPRISES CORPORATION MALAYSIA ACT 1995 An Act to provide for the establishment of the National Small and Medium Enterprises Development Council and the establishment and incorporation of the Small and Medium Enterprises Corporation Malaysia and for connected matters. [1 May 1996, P.U. (B) 152/1996] BE IT ENACTED by the Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and Dewan Rakyat in Parliament assembled, and by the authority of the same, as follows: Part I PRELIMINARY Short title 1. This Act may be cited as the *Small and Medium Enterprises Corporation Malaysia Act 1995. Interpretation 2. In this Act, unless the context otherwise requires— “Chairman” means the Chairman of the Small and Medium Enterprises Corporation Malaysia; *NOTE—Previously known as the Small and Medium Industries Development Corporation Act 1995. Change in short title vide section 3 of the Small and Medium Industries Development Corporation (Amendment) Act 2009 [Act A1358] w.e.f. 2 October 2009—see P.U. (B) 402/2009. 8 Laws of Malaysia Act 539 “company” means a company incorporated under the *Companies Act 2016 [Act 777] and includes a business registered under the Registration of Businesses Act 1956 [Act 197]; “Corporation” means the Small and Medium Enterprises Corporation Malaysia established under section 3; “Council” means the National Small and Medium Enterprises Development Council established under section 2a; “Fund” means the Small and Medium Enterprises Development Fund established under section 19; “Minister” means the Minister responsible for **entrepreneur development; “small and medium enterprises” means enterprises as may be determined by the Council. Part Ia THE COUNCIL Establishment of the Council 2a. (1) A body to be known as the “National Small and Medium Enterprises Development Council” is established. (2) 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: (a) the Prime Minister as the Chairman; (b) the Minister; *NOTE–This Act has replaced the Companies Act 1965 [Act 125]—see subsection 620(1) of Act 777. **NOTE–See the Ministers of the Federal Government (No. 3) Order 2021 [P.U. (A) 383/2021]. Small and Medium Enterprises Corporation Malaysia 9 (c) the Minister of Finance; (d) the Minister responsible for agriculture and *food industries, or his representative; (e) the Minister responsible for human resources, or his representative; (f) the Minister responsible for science, technology and innovations, or his representative; (g) the Minister responsible for rural and regional development, or his representative; (h) the Minister responsible for higher education, or his representative; (i) the Minister responsible for tourism, or his representative; (j) the Minister responsible for domestic trade *and consumer affairs, or his representative; (k) the Minister responsible for plantation industries and commodities, or his representative; (l) a Minister in the Prime Minister’s Department, or his representative; (m) the Minister of the State Government of Sabah responsible for development and industry in Sabah, or his representative; (n) the Minister of the State Government of Sarawak responsible for development and industry in Sarawak, or his representative; (o) the Chief Secretary to the Government, or his representative; (p) the Director General of the Economic Planning Unit of the Prime Minister’s Department, or his representative; and *NOTE–See the Ministers of the Federal Government (No. 3) Order 2021 [P.U. (A) 383/2021]. 10 Laws of Malaysia Act 539 (q) the Governor of Bank Negara Malaysia, or his representative. (2) In addition to the persons mentioned in subsection (1), the Chairman may appoint the following persons as members of the Council: (a) a representative from the association related to the small and medium enterprises; (b) a representative from the manufacturing sector; (c) a representative from the services sector; (d) a representative from the agriculture sector; and (e) such number of other persons. (3) The members referred to in paragraphs (2)(a), (b), (c), (d) and (e)— (a) shall be appointed by the Chairman for a term not exceeding two years; and (b) shall be eligible for reappointment upon expiry of his term of office. (4) The Corporation shall act as Secretariat to the Council. Functions of the Council 2c. (1) The Council shall have the following functions: (a) to formulate broad policies and strategies to facilitate the overall development of small and medium enterprises across all sectors of the economy; (b) to review the roles and responsibilities of Government ministries and agencies in relation to the development of small and medium enterprises across all sectors of the economy; Small and Medium Enterprises Corporation Malaysia 11 (c) to enhance co-operation and co-ordination, as well as to guide Government ministries and agencies to ensure effective implementation of development policies and action plans for small and medium enterprises across all sectors of the economy; (d) to encourage and strengthen the role of the private sector in supporting the overall development of the small and medium enterprises across all sectors of the economy; and (e) to perform any other functions conferred upon the Council under this Act. (2) 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. (3) 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. (4) The Council shall meet as and when a meeting is convened by the Chairman of the Council but not less than once a year. (5) The Council may determine its own procedure. Part II THE CORPORATION Establishment of the Corporation 3. There shall be established a body corporate to be known as the “Small and Medium Enterprises Corporation Malaysia” which shall have perpetual succession and a common seal, and which may sue and be sued in its name and, subject to and for the purposes of this Act, may enter into contracts and may acquire, purchase, take, hold and enjoy movable and immovable property of every 12 Laws of Malaysia Act 539 description and may convey, assign, surrender, yield up, charge, mortgage, demise, reassign, transfer or otherwise dispose of, or deal with, any movable or immovable property or any interest therein vested in the Corporation upon such terms as it deems fit. Composition of the Corporation 4. (1) The Corporation shall consist of the following members: (a) a Chairman; (b) a Deputy Chairman who shall be a representative from the Ministry of International Trade and Industry; (c) a representative of the Ministry of Finance; (d) a representative of the Economic Planning Unit of the Prime Minister’s Department; (e) three representatives from the chambers of commerce; (f) a representative from the manufacturing sector; (g) a representative from the services sector; (h) a representative from the agriculture sector; (i) the Chief Executive Officer of the Corporation; and (j) such other members, not exceeding six, as the Minister may determine. (2) 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. (3) The provisions of the Schedule shall apply to the Corporation. Small and Medium Enterprises Corporation Malaysia 13 Tenure of office 5. Subject to section 6, members of the Corporation other than the Chief Executive Officer shall hold office for a term not exceeding three years as the Minister may determine at the time of their appointment and shall be eligible for reappointment. Revocation of appointment and resignation of members 6. (1) The Minister may at any time revoke the appointment of any member of the Corporation without giving any reason therefor. (2) 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 7. (1) The Minister may appoint any member of the Corporation to exercise the functions of the Chairman during any period the Chairman is for any reason unable to exercise his functions or during any period of any vacancy in the office of the Chairman; and such member shall, during the period in which he is exercising the functions of the Chairman, under this subsection, be deemed to be the Chairman. (2) 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 8. (1) The Minister may, in respect of each member of the Corporation appointed under paragraphs 4(1)(b), (c) and (d), appoint one person to be an alternate member to attend in place of the member, meetin