PETALING JAYA: Federal Government measures have shielded Malaysian SMEs from the worst of the global energy crisis, allowing businesses to remain resilient despite heightened geopolitical tensions, says the Small and Medium Enterprises Association (Samenta).
Its national president Datuk William Ng said swift government intervention, including fuel subsidies, anti-profiteering enforcement and financial relief measures, had prevented widespread business closures and retrenchments that many feared when the Middle East conflict erupted earlier this year.
ALSO READ: A dual-track strategy for SMEs’ financial resilience
"When geopolitical tensions intensified, many SMEs prepared for the worst.
"We expected Brent crude prices to exceed US$100 per barrel, triggering runaway inflation, supply disruptions and widespread business closures.
"Instead, Malaysia has remained resilient because of timely fiscal planning, strategic supply chain management and targeted government assistance," he said in a statement on Thursday (July 9).
Ng said many SMEs had responded to the uncertainty by tightening operations, deferring non-essential spending and shifting supply chains towards regional partners.
He said five months into the crisis, the anticipated economic slowdown had not materialised.
Although Brent crude prices rose by 27% this year to an average of US$93 per barrel, Malaysia recorded 5.4% gross domestic product (GDP) growth in the first quarter while domestic spending and the retail sector remained resilient, he said.
ALSO READ: Eligible MSMEs can apply for up to RM750,000 in financing, says Amir Hamzah
He attributed the outcome to the government's decision to retain petrol subsidies, enforce anti-profiteering regulations and ensure sufficient domestic fuel stockpiles.
"These measures kept inflation below 2%, shielding SMEs from escalating operating costs.
"Early fuel stockpile management and efficient coordination at major ports also prevented serious supply disruptions and strengthened investor confidence," he said.
Ng said Malaysia had emerged as one of the least affected economies in Asean and had benefited from its position as a relatively safe investment destination amid global uncertainty.
He added that industry groups, including Samenta, had been engaged by the government as early as March to formulate support measures for businesses.
Among the initiatives introduced were the RM5bil SME Stability Relief Facility, RM10bil in credit guarantees through Credit Guarantee Corporation Malaysia Bhd (CGC) and Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP), as well as an increase in the government guarantee margin to 80%.
ALSO READ: Dr Wee opens Malaysia Gifts Fair, highlighting B2B opportunities for SMEs
Ng said the financing measures had enabled viable SMEs to secure additional funding to weather the challenging environment.
He added that Samenta had also introduced Asean's first Circular Economy Certification programme to help SMEs reduce dependence on raw materials and energy, while rolling out a nationwide Hyperlocal AI Fest roadshow to encourage artificial intelligence adoption among small businesses.
"The strong collaboration between the government and industry has enabled Malaysia to navigate this challenging period.
"We remain committed to working with the government to strengthen the resilience of SMEs while preparing them for future challenges," he said.
