Only 18% of companies nationwide have expanded internationally, CM reveals
SMALL and medium-sized enterprises (SMEs) must grow beyond the domestic market if the country hopes to move up the value chain, says Penang Chief Minister Chow Kon Yeow.
National trade performance, driven by manufacturing, processed food and agriculture-based products, has shown that SMEs play a critical role as exporters and supply chain players.
However, while SMEs account for more than 97% of all businesses in the country, only a fraction participate in global trade.
“Despite having more than one million SMEs nationwide, only about 18% participate in global trade.
“A shift in mindset is needed from caution to calculated risk-taking, and from local focus to global ambition,” he said during the Malaysia Entrepreneurs’ Development Association (PUMM) 20th anniversary and Chinese New Year dinner in Penang.
Federal and state industrial roadmaps, including the New Industrial Master Plan 2030 and National Semiconductor Strategy, provide strong support for automation, digital adoption, and market expansion, he said.
“Their impact depends on how businesses respond.
“While foreign direct investment remains important, the country cannot rely on it alone.
“Shifting global supply chains and expanding trade flows into South-East Asia present a timely opportunity for local SMEs that are ready to step forward.”
PUMM president Datuk Dr Teh Tai Yong, who was also present, reaffirmed the association’s commitment to SMEs and said the anniversary reflected steady growth, contribution and continuity among generations of entrepreneurs in the state.
“PUMM in Penang has progressed step by step over the past 20 years, from serving members locally to connecting nationally, and from supporting businesses to creating a broader impact on society.
“This is not only an affirmation of PUMM, but a strong encouragement to the business community in Penang.”
PUMM today, according to Teh, has grown into a national organisation with 10 state liaison committees and more than 3,000 entrepreneur members nationwide, offering platforms such as business matching sessions, forums, international study missions, training programmes, and policy dialogues.
Its support included access to business opportunities, networking, policy information, financing and capital matching, environmental, social and governance (ESG) guidance, digital transformation support, succession planning, as well as legal, tax and governance advisory services.
The event, which saw about 250 representatives of various SMEs, included stage performances and lucky draws.
Also present were Penang social development, welfare and non-Islamic religious affairs committee chairman Lim Siew Khim, Consul-General of Japan in Penang Machida Shinya, Penang’s honorary consul of Brazil Datuk Annie Chin and PUMM Penang branch chairman Ellva Tan Suat Hoon.
