PETALING JAYA: The Madani Government’s people-first approach is sending the right signals to the business community, with early signs of progress in efforts to create a more inclusive and equitable economy, according to the SME Association of Malaysia.
Its president Chin Chee Seong acknowledged the government’s “genuine effort and sincerity in supporting inclusive growth and shared prosperity”.
He said Prime Minister Datuk Seri Anwar Ibrahim’s administration has focused more on the people’s economy, particularly the B40, M40, and micro, small, and medium enterprises (MSME) sectors, which are “vital to Malaysia’s development.”
Chin highlighted initiatives under the Ekonomi Madani framework, including the progressive wage policy pilot, digitalisation grants, and low-interest financing for small and medium enterprises (SME), calling these “positive signs that the government wants to strengthen small businesses and promote fair growth.”
While supporting the policy direction, Chin urged caution on the pace of implementation, noting that “the timing and coordination of implementation are important.”
He warned that recent cost-related measures such as the sudden extension of the 8% sales and service tax (SST) to rentals and leasing, higher utility rates, fuel subsidy cuts, and minimum wage increases could create pressure on small businesses.
“For inclusive growth to truly succeed, policies must be balanced, gradual, and well-communicated, with continuous engagement between the government and industry players,” said Chin.
He expressed confidence that with such an approach, the Madani government could “achieve its vision of shared prosperity and sustainable economic progress for all Malaysians.”
Chin said current policies under the Madani framework do reflect a sincere effort to empower SMEs and MSMEs through digitalisation, green economy support, and affordable financing.
According to Chin, current policies under the Madani framework do reflect a sincere effort to empower SMEs and MSMEs through digitalisation, green economy support, and affordable financing.
“These policies are moving in the right direction and show the government’s intention to build a more inclusive and resilient economy,” he noted.
He also pointed out that many SMEs continue to face major hurdles, including high operating costs, weak consumer demand, and difficulties in accessing funding.
“Past programmes like the Smart Automation Grant (SAG) and Industry4WRD had stronger and more direct impacts. But today, similar schemes are being rolled out with smaller budgets and slower implementation.”
To truly align with Malaysia’s long-term economic vision, Chin called for increased allocations, simpler application processes, and greater accountability through progress reporting.
“This will build confidence and ensure every ringgit spent truly strengthens our SME ecosystem,” he said.
Chin reiterated his support for the overall direction of Madani policies but warned that abrupt or poorly coordinated measures can cause unintended harm to businesses.
“SMEs are the backbone of our economy, employing the majority of Malaysians. But when several cost-related policies are introduced too closely together, it creates unnecessary pressure,” he said.
He called for a more consultative and phased approach to implementing new policies, allowing businesses time to plan and adapt. At the same time, he urged the government to enhance engagement, transparency, and communication with industry players.
Chin also emphasised the need for stronger SME export policies, suggesting that initiatives like Madani Digital Trade (MDT) must be backed by real financial support, market access facilitation, and practical export training.
“We need to help local businesses tap into regional and global markets, not just digital platforms,” he said.
He then highlighted the importance of developing a skilled local workforce to reduce reliance on foreign labour. This, he said, must be achieved through systematic education and vocational reforms, not sudden regulatory shifts.
“What will make the biggest difference are consistent policies, sufficient funding, transparent reporting, and continuous engagement with industry stakeholders.
“With these in place, SMEs can truly become the engine of inclusive, sustainable, and export-driven growth, helping Malaysia achieve its goal of becoming a high-income and globally competitive nation,” he said.
