ABSTRACT
The promotion of small and medium enterprises (SMEs), among other policies, has emerged as a complementary policy instrument envisaged to modify the existing structure of the industrial development in the country. The policy reflects a recognition of the fact that SMEs posses several socio-economic attributes and potentialities, and that can be promoted to achieve a more balanced industrial development. The Malaysian government has, therefore, embarked upon the promotion of SMEs in attempting to tap their potentialities within the overall national industrial strategy. Whether the position of SMEs is subordinated to or exploited by large enterprises, whether their relations with large enterprises have favourable and complementary effects can only be ascertained by an empirical study located in a historically specific socio-economic context. If government policies were more favourable and if adequate financing, technical assistance, extension and advisory services as well as infrastructure supports were made readily and cheaply available, a more prosperous growth and development of individual SMEs could be achieved.
