KUALA LUMPUR, April 28 (Bernama) -- It is crucial to develop local technopreneurs with innovative and cutting edge technologies to position Malaysia as a developed nation by 2020, says International Trade and Industry Deputy Minister Datuk Mukhriz Mahathir.

He said development of small and medium enterprises (SMEs) in the information technology and communications (ICT) sector was regarded as one of the key drivers for the country's economic growth in the digital era.

"The New Economic Model has outlined several areas where ICT implementation will be a catalyst for economic growth.

"However, the National Economic Action Council has lamented that poor ICT utilisation among local SMEs and their inability to fully tap into advances in ICT are causes for concern that is impeding our national development," he said when opening the inaugural SME Enterprise Software Technology and Business Solution 2010 Conference and Exhibition (SESTECH 2010).

Mukhriz said the government had consistently urged SMEs and industries to innovate, utilise technology and adopt ICT solutions to remain competitive.

He said the government had allocated RM350 million for soft loans and capacity enhancement programmes and RM538 million for SME development programmes as announced by Prime Minister Datuk Seri Najib Tun Razak when tabling the 2010 Budget.

Meanwhile, SESTECH 2010 organising chairman Datuk Daud Daros said ICT usage among SMEs was still very low at around 25 per cent.

He said the adoption of business management software in their operations would enable them to enhance competitiveness.

"There are abundance of enterprise software management tools, content and data delivery mechanism available today for SMEs to adopt to increase their efficiency and effectiveness," he said.

On SESTECH 2010, Daud said the three-day event, which started yesterday, would provide SMEs a valuable insight into the latest IT products and solutions.

-- BERNAMA --