ENTERPRISE development centres (EDCs) run by local business groups can help ensure that smaller firms survive the downturn, according to a leading business figure from the Malay community.

Mr Akbar Kader, chairman of EDC@ the Singapore Malay Chamber of Commerce and Industry EDC@SMCCI, believes the centres can help foster greater cohesion between Malay businesses and the local community to beat the economic slowdown.

But he warned that old SME business models may no longer be relevant today.

'This is especially true in the industries favoured by Malay-Muslim businesses. There have been structural changes in the global economy that significantly affect the Singapore economy,' he said.

'The need of the hour is to work hard to survive the present and to lay the foundations for a better future for our business community, bearing in mind that the global economic crisis is likely to last into 2010,' added Mr Akbar.

'Having observed past economic cycles, I have learnt that these tough times can be opportunities for repositioning, investing and - most importantly - improving ourselves.'

With the support of Spring Singapore, EDCs have been providing a wide range of business consultancy products and services to aspiring entrepreneurs and existing firms since 2005.

Spring provides up to 70 per cent of the establishment costs of each EDC - capped at $1.5 million - as part of the Government's strategy to reach out to SMEs.

Aside from EDC@SMCCI, there are four other similar centres run by business support groups, such as the Association of Small and Medium Enterprises and other ethnic-based business chambers like the Singapore Chinese Chamber of Commerce and Industry.

As EDC@SMCCI enters its third year, Mr Akbar said it must adapt to prevailing conditions and realign its objectives.

With a strong focus on internalisation, innovation, integration, investment and internationalisation, he believes the

SMCCI can achieve its vision of becoming a leading EDC by the end of 2011.