Assessing the Environment of Internationalization of SMEs in Malaysia

SMEs represent a backbone of Malaysian economy. Their internationalization is no longer a choice but is a necessity that allows grow and global expansion. This study is meant to be both descriptive and explanatory study which aims to assess the environment of internationalization of Malaysian SMEs by looking to the incentives and drivers that enable them expanding their activities and operations abroad. The findings show the extensive assistance of the governmental institutions through the establishment of multiple plans, schemes, initiatives and incentives applied for typically all industries and designed to relate the local SMEs with the global chain via programs such as industrial linkage and global suppliers program. Export is the mode that is mostly followed while the implementation of ICT and E-commerce are still at a low level. The results indicate that efficient outcomes are not yet engendered which may be attributed to the lack of awareness or the inefficiency of the implementation of all these actions. Therefore, there is a need to review the institutional actions and better assessment of the drivers.