It is widely known that many MNCs/LSIs are developing supplier networks of competitive SMI/Es to complement their core activities. However, it is also a known fact that many of the local SMI/Es remain de-linked from the MNCs/LSIs, and thus are at disadvantage in terms of technological spillovers, access to markets, information technology as well as finance. The main reason for this de-linkage is that the local SMI/Es have not been able to comply with the corporate standards of the MNCs/LSIs as well as the international standards on price, quality, delivery, health, labour and environment. There are many traditional obstacles to forging linkages: requirements for SMEs to be partnership ready; best practices in terms of programmes; new challenges; what the private sector needs from the public sector; what the private sector can do and the blueprint for growing competitive SMEs. This paper attempts to discuss the implications of these issues for the development of local SMI/Es. Publication: Socio-Economic & Environmental Research Institute (SERI), 2000. Author: Ong, Anna Cheng Imm.