SMEs still struggling despite economic recovery

SMALL and medium enterprises (SMEs) continue to face severe margin compression even as the economy continues to recover. Despite the 5% growth in GDP in the first half of 2024, many SMEs on the ground do not feel the same optimism.

In the latest survey conducted by the Small and Medium Enterprises Association of Malaysia (Samenta), two out of three SMEs indicated that they have less than six months of cash reserves. This is despite some 44% of the SMEs reporting revenue growth.