The ERIA-OECD SME Policy Index shows that Malaysia’s SME policy is, in all policy dimensions, ahead of most other ASEAN countries (Figure 5.10) with the exception of Singapore. The gap with the ASEAN average is the greatest for support to technology acquisition and transfer, since Malaysia has implemented well-constructed innovation policies and programmes to facilitate SMEs to embark on R&D&I activities. However, there is still room for the government to introduce and manage new promotional activities to stimulate technological upgrading, especially in the service sector (ERIA-OECD, 2014). All indicators are measured on 5 “levels” of policy development. Level 1 is the weakest level and level 5 the strongest.