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Home / Updates /Promoting enterprise formalization in Malaysia through community-based training for local MSMEs

Promoting enterprise formalization in Malaysia through community-based training for local MSMEs

C-BED
News
Mar 01, 2023

The ILO initiated workshops for MSMEs in Sarawak Province, Malaysia in collaboration with the Kuching South City Council using ILO’s Community Based Enterprise Development (CBED) training tools.


Informal MSMEs were heavily impacted following the COVID-19 pandemic due to the lack of access to formal support programmes. The ILO addressed this issue by globally accelerating technical support for enterprise formalization

Following the ILO’s past MSME support through the Rebuilding Better Project, > the ILO rolled out pilot workshops for MSMEs in Sarawak, Malaysia using the  ILO’s Community-Based Enterprise Development Tools > (C-BED). C-BED adopts a peer-based participatory learning method with no need for experts or teachers. 

Three pilot sessions were conducted in Sarawak Province, Malaysia in collaboration with the Kuching South City Council, between August 2022 and February 2023 for 50 participants in total. The activity-based learning approach fit well into the needs of informal MSMEs, and participants learned about the benefits and processes of business registration, tax payments, and formal business operation.

The ILO disseminated a one-page infographic handout after the workshop, explaining merits, processes, and information sources for enterprise formalization. The quick guide was handed out to 30 participants of the last workshop and helped informal business owners benefit from formalization.

All participants shared positive feedback and forward-looking suggestions following the workshop. Mr. Christopher, a workshop participant with a network among student residences commented, “I am keen to participate in future CBED workshops to help create awareness for the young entrepreneurs in Sarawak”.

Sarawak’s Social Security Organization (SOCSO) has shown interest in taking up the C-BED Business Formalization module for other business owners in the region. The ILO is seeking to expand the Formalization initiative more broadly in Malaysia.

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