Enterprise formalization

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

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 (C-BED) training tools.

News | Bangkok, Thailand | 21 March 2023
Participants actively engaging in workshop on enterprise formalization for MSMEs. © ILO
BANGKOK, Thailand (ILO News) - Informal Micro, Small and Medium Enterprises (MSMEs) were heavily impacted following the COVID-19 pandemic due to the lack of access to formal support programmes. 

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)

Three pilot sessions were conducted in collaboration with the Kuching South City Council, between August 2022 and February 2023. 50 participants learned about the benefits and processes of business registration, tax payments and formal business operation. C-BED adopts a peer-based participatory learning method with no need for experts or teachers. 

The ILO developed a one-page infographic explaining merits, processes, and information sources for enterprise formalization. The quick guide was handed out to 30 participants at the last workshop, majority of whom were informal business owners.

All participants shared positive feedback and forward-looking suggestions. Mr Christopher, a workshop participant working with student residential services commented, "I am keen to participate in future C-BED workshops to help create awareness for the young entrepreneurs in Sarawak".

Sarawak's Social Security Organization (SOCSO) has shown interest in using 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.

For further information please contact:

Mr Akira Kawasaki
Technical Officer on Entrepreneurship and SME Development
ILO Decent Work Technical Support Team – Bangkok
Email: kawasaki@ilo.org