Supporting very young founders can help Malaysia build a stronger pipeline of start-ups, but they typically face their most difficult period between ages 30 and 35, when founders juggle financial commitments, business challenges and scaling needs, Chin cautions. — 123rf
WITH youth organisations now restricting leadership roles to individuals aged 18 to 30, small and medium-sized enterprises are likely to experience several impacts, says SME Malaysia president Dr Chin Chee Seong.
He points out that many businesses rely on youth platforms within NGOs, student bodies and community-based organisations to identify and nurture young talent.
“When the eligible leadership age range becomes narrower, the pool of youths gaining early leadership exposure will inevitably become smaller.
“This change may influence succession planning, especially for family businesses and start-ups. These companies often prepare their successors or future leaders when they are in their late 20s or early 30s.”
Chin says SMEs can support those who age out by providing space for collaboration, co- creation and product testing.
He says if the leadership development period becomes shorter, some young talents may be required to take on bigger responsibilities before they are fully ready.
“In addition, start-ups that rely on young founders may face challenges if key team members can no longer access youth-focused programmes that offer mentorship, funding or leadership exposure once they exceed the age limit.”
Chin argues that while the new ruling may speed up the leadership journey for those under 30, it may also create a development gap for individuals in their 30s.
“SMEs will need stronger internal training and mentoring systems to ensure that future leaders are well prepared despite the shorter youth leadership window.”
He also stresses that SMEs will need to adjust their talent strategies as the window to develop young workers becomes shorter, so companies must train and groom young staff much earlier.
“First, we expect faster development of workers under 30. SMEs will hire and train fresh graduates more aggressively to make full use of youth-related incentives.
“Competition for young talent will increase, so businesses may need to offer clearer career paths and better benefits to attract and retain them.
“Second, this change may push younger Malaysians into leadership roles sooner, especially in digital sectors where quick adaptation is important.”
At the same time, Chin says SMEs still rely strongly on workers aged 30 to 40.
“They carry experience, stability and institutional knowledge. It is important that this group continues to receive support through mid-career upskilling, especially in areas like AI, digital skills and data.
“In short, the new youth definition will speed up the growth of young leaders, but Malaysia must balance this with strong support for mid-career workers, who remain essential to the SME ecosystem.”
On Budget 2026’s incentives for young entrepreneurs, Chin says limiting these benefits to those under 30 may have mixed results; startups typically face their most difficult period when their founders are between 30 and 35, when they juggle financial commitments, business challenges and scaling needs.
“On one hand, supporting very young founders can help Malaysia build a stronger pipeline of startups by encouraging more people to begin their entrepreneurial journey earlier.
“However, many successful businesses are actually started by individuals in their early 30s, when they have gained enough experience, confidence and financial stability.
“If the incentives apply only to those below 30, we may unintentionally exclude a large group of capable entrepreneurs who are still in the early stages of building or stabilising their businesses.”
To a question about the role of SMEs in supporting those who age out but still have valuable ideas and energy, Chin says SMEs form the largest ecosystem of employers and innovators in the country.
“They can support those who age out by providing space for collaboration, co-creation and product testing.
“SMEs can also offer opportunities through project partnerships, incubation support and digital adoption initiatives that allow these individuals to continue refining their ideas.
“The SME Association strongly believes that creative and innovation talent should not be limited by age.
“While youth programmes remain important, we must ensure that Malaysians in their 30s still have access to platforms, funding and opportunities to contribute.
“In many cases, this group has the experience, discipline and drive needed to turn ideas into real commercial value.
“SMEs stand ready to work with the government to build more inclusive pathways so that innovation can continue regardless of age.”
