Appropriate Technology For Strengthening The Role Of Small And Mirco-Enterprise (SME): Case Study On Food Processing Industries In Malacca State

Mulyaningrum, . and Edna, Buyong and Juhaini, Jabar (2007) Appropriate Technology For Strengthening The Role Of Small And Mirco-Enterprise (SME): Case Study On Food Processing Industries In Malacca State. Project Report. UTeM, Melaka, Malaysia. (Submitted)

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Abstract

It was a fact that more than 98% of food processing industries are home-small and medium industries (SMEs). Hence, there are only 2% of food processing industries that belong to the large scale industry category. Now there were about 14,000 SMEs (more than 18%) involved in food processing and other activities related to food (Ghani, 2004).The gross production value of this sector stood at RM 10.5 billion in since 1995. The food processing sector also is responsible for more than one-third of the employment in the non-agriculture sector.Higher income and changes in lifestyle of societies are expected to change food consumption habits to more nutritious and higher quality products. There is also growing trends the consumption of convenient food product that are 'easy-to-cook· and ·ready-to eat'. These scenarios will further increase the food demand and the important of food industries. In addition . food industries are required to produce high quality products by using efficient process technology to save time and cost. However, one of the several issue affecting food processing SMEs in areas of competitiveness. efficiency and resilience are more often caused b) Jack of appropriate techno log).The primary objective of this research is to strengthen the role of SMEs through transfer of appropriate technology, particularly on processing of food and agricultural indigenous resources. The research is based on a qualitative study. The target primary data include observations, interviews, and documents on the food processing system. We also spend an extended period of time, almost 3 weeks on site and interact regularly with 15 SME owners in food processing as a case study in Malacca state. The research found that various food processing based on indigenous agricultural product have been applied in many places of Malacca State, particularly at the rural level as development of SME, and they need provision of appropriate technology. Several issues affecting SMEs in areas of appropriate technology are more often caused by the high cost of using the best technology, low economic of scale, Jack of access to financial capacity,and the general Jack of knowledge and information about appropriate technology.

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