KOTA KINABALU: The survival of micro, small and medium enterprises (MSMEs) in Sabah, developing its domestic industries and safeguarding the state's sovereignty are among pressing issues that need greater parliamentary attention, says Senator Datuk Phoong Jin Zhe (pic).
He said these must be addressed through serious policy research, meaningful oversight and practical solutions.
He said that he felt compelled to share these views as a member of the Dewan Negara Parliamentary Select Committee on Trade, Industry and International Relations, which held its inaugural meeting in Kuala Lumpur on Thursday (Oct 8).
"Currently, the mounting structural challenges confronting Malaysia’s MSMEs and the potential security implications for Sabah arising from increased military cooperation between the United States and the Philippines on Balabac Island are of grave concern," said Phoong, who is also Sabah DAP chairman.
"Putrajaya must also address the growing pressures threatening the sustainability of local businesses while strengthening national defence preparedness to safeguard Sabah’s security, territorial integrity and Malaysia’s sovereignty," he added.
He urged the committee to prioritise the structural challenges confronting MSMEs, particularly their long-term viability, rising operating costs and increasingly competitive business environment.
"Their ability to survive, compete and create employment is equally important to Malaysia’s economic future," he said.
Phoong urged Prime Minister Datuk Seri Anwar Ibrahim to carefully assess the resilience and financial capacity of businesses before introducing a further minimum wage increase.
Another area he touched on was the rapid expansion of cross-border e-commerce platforms and how this might have disruptive impacts on traditional retailers, local wholesalers and small-scale manufacturers.
He noted that major international digital platforms possess significant competitive advantages through economies of scale, substantial financial resources, integrated cross-border supply chains and aggressive pricing strategies.
"We cannot expect local businesses to comply with various taxation, regulatory and operating requirements while competing against international platforms with enormous financial resources and cross-border supply chain advantages under unequal market conditions," he said.
On national security, Phoong said the growing military cooperation between the United States and the Philippines on Balabac Island is an issue which Malaysia has to approach with prudence.
These developments warranted careful federal attention, he said, particularly given Sabah’s geographical proximity.
Malaysia has an equally important responsibility to ensure that its national security is not compromised by intensifying regional military competition, he added.
He said Sabah’s defence capabilities and readiness must be strengthened, and called for a comprehensive assessment of Malaysia’s maritime surveillance capabilities, radar coverage, air and sea patrol capacity, intelligence sharing, rapid response mechanisms and defence infrastructure across Sabah’s northern waters and offshore islands.
Phoong reiterated that the Philippines’ longstanding territorial claim over Sabah remains a serious historical and diplomatic matter that Malaysia must continue to address firmly.
