Kuala Lumpur: SME Association of Malaysia national president Chin Chee Seong said Malaysia’s globalized mindset and open trade policies make it attractive despite the challenges posed by US tariffs.
He said Malaysia is particularly attractive to Chinese companies as it aligns with China’s need to diversify its trade partnerships in the wake of ongoing US-China trade tensions.
“Malaysia pursues a free trade policy, making it easy for everyone to enter. In the manufacturing sector, we are seeing better participation from the Chinese. They have found that the best place for them in Southeast Asia is Malaysia. In fact, Kuala Lumpur and even other smaller cities can become hubs for them,” he told reporters at the Malaysian SME Resilience and Growth 2025 conference today.
Chin also said Malaysian SMEs could benefit from expansion into markets such as BRICS but needed more government support to help them. “The government needs to help us open up other markets like BRICS and allocate more funds for promotion. It is a long journey to enter these countries.
He shared that some companies with several hundred employees have reduced their workforce by about 30%. “They cut back and shifted their sales focus to markets like Japan, Taiwan, Asia-Pacific and even Indonesia. That’s why he’s still alive.”
Looking ahead, Chin said the next six months will be challenging for Malaysian SMEs due to higher operating costs, inflation, multi-tier levies, e-invoicing and electricity tariff hikes.
“SME growth is expected to be in single digits this year. If you are talking about GDP growth, it is not growing.”
Chin particularly highlighted the fierce competition from low-cost alternatives in the IT services industry of China and India.
“Exports have been slow for several years, and the cost of living has increased. People don’t have money. When people do not have money they spend less. They can still buy, but not as much as before. Therefore, rising costs impact consumer spending, which in turn impacts SMEs.
