PETALING JAYA: The government must move beyond merely providing financial assistance and address long-standing structural issues affecting micro, small and medium enterprises (SMEs), says the Small and Medium Enterprises Association (Samenta).
Its president Datuk William Ng (pic) said the first 100 days of Entrepreneur Development and Cooperatives Minister Steven Sim’s tenure under the Hebatkan Perniagaan Malaysia initiative marked a positive start, but greater emphasis must now be placed on comprehensive structural reforms.
Among the key issues that need attention are ensuring a level playing field with government-linked companies (GLCs), addressing workforce challenges holistically, undertaking radical bureaucratic reforms and shifting from “Made in Malaysia” to “Made by Malaysia”.
“It is time for GLCs to scale back their involvement in non-strategic retail and services sectors to allow local SMEs to grow without competing with state-owned entities,” he said in a statement yesterday.
Ng said the majority of SMEs still rely on foreign labour and called for a simplified hiring process, as well as a tiered levy system to ensure efficient workforce utilisation and eliminate middlemen.
He added that bureaucratic red tape at the local authority and licensing levels, which poses a hidden burden on SMEs, requires urgent reform to ensure business sustainability, particularly amid global geopolitical challenges.
“We hope this momentum can be accelerated. In facing the impact of geopolitical tensions in the Middle East on supply chains, efficient bureaucracy is no longer optional but a strategic necessity for business survival,” he said.
Ng also said the government must drive a shift in Malaysia’s economic identity by focusing on developing local brands and strengthening intellectual property ownership so that SMEs can compete globally.
While acknowledging that Sim’s 100-day performance was encouraging, Ng said the business community hopes for deeper structural reforms to ensure long-term economic resilience.
“Samenta remains committed to working closely with the ministry and minister to ensure that our 1.1 million SMEs remain competitive,” he added.
