KUALA LUMPUR: Malaysian businesses must shift from the traditional “Made in Malaysia” model towards “Made by Malaysia” products driven by local talent, design and innovation, says Steven Sim.
The Entrepreneur Development and Cooperatives Development Minister said the shift was necessary as Malaysia could no longer rely on its traditional low-cost model to remain competitive in the modern global economy.
He said this was due to technology developing at an extremely rapid pace, not just nationally but on an international scale, such as the growth of AI.
“Many companies around the world are already finding that the cost of implementing AI technology has suddenly increased.
“This week you pay a subscription for AI. Two weeks later, that AI is already outdated as your competitors have better AI and you have to keep catching up,” he said at the inauguration of the BrandQuest Programme 2026 on Monday (Aug 17).
Sim added that the intensifying competitiveness of Malaysia’s regional rivals in offering low cost labour, and other production operating costs is also a growing concern.
He said Malaysia's long-standing reliance on price-driven competition had become too risky as businesses continuously undercut one another to attract customers.
“This is a competition that can only lead one way, to the bottom which means, we will no longer have a pricing competitive edge in the long term,” Sim added.
Instead, he said Malaysian brands should reflect value, while also giving consumers confidence in the safety, health and cleanliness of their products.
He added that the ongoing global instability also presented an opportunity for Malaysia to reposition itself as a safe destination for businesses, investment and products.
“In these times of global instability, the best opportunity the Malaysian Brand has now is to reflect value, safety, and health over just price.
“We have to move beyond imitation to innovation,” he said.
Sim said the government was also providing financial resources for businesses facing challenges while supporting companies seeking to expand, innovate and move up the value chain.
This includes his Ministry's PowerUp10K programme, which he said is now targeted at providing up to RM15bil in financing for local entrepreneurs by the end of this year.
He added as of the end of July this year, RM9bil had already been approved and in the process of being channelled to 250,000 entrepreneurs nationwide.
Sim said the funds were intended not only to help entrepreneurs survive economic challenges but also support companies seeking growth and opportunities.
“Some are struggling for business survival, but it also helps Malaysian companies that want to grow and climb the value chain,” he said.
Sim also said SME Corporation Malaysia (SME Corp) had allocated RM230,000 to help Malaysian SMEs obtain their necessary business certifications under the Malaysian Brand certification programme.
He said about 40 companies had benefited from the allocation during 2025 and 2026, with the Ministry looking to assess whether the allocation should be increased in the future.
Sim added that his Ministry will continue supporting Malaysian businesses as needed while the world navigates a volatile global environment marked by technological disruption and intense competition.
“This is my mission: to ensure that there are enough resources on the table and available for Malaysian companies to continue competing and continue progressing,” he said.
