Samenta calls on China to ease digital access for Malaysian SMEs

Malaysian Reserve

22-04-2025

THE Small and Medium Enterprises Association Malaysia (Samenta) has called for greater support from China to help Malaysian small and medium enterprises (SMEs) tap into the vast Chinese market, especially through digital trade platforms.
The appeal comes on the back of a renewed commitment between Malaysia and China, highlighted by the visit of President Xi Jinping to Malaysia from April 14-16, 2025.
As Malaysia's oldest and largest association representing SMEs, Samenta sees the visit as a significant step toward deepening trade relations, particularly in sectors where Malaysian SMEs have a competitive edge.
He said the China president's visit marked a new chapter in the longstanding friendship and strategic partnership between the two nations.
'As Malaysia's oldest and largest association representing SMEs, Samenta sees this renewed commitment as a timely opportunity to deepen trade and investment ties — particularly for our SME sector,' Samenta president Datuk William Ng said in a statement.
Samenta noted that China remains Malaysia's largest trading partner, and with the Belt and Road Initiative (BRI) reaffirmed, the digital economy and sustainable development initiatives offer new avenues for SME growth.
Malaysian SMEs, especially in halal food, health supplements and artisanal products, could expand their reach by leveraging Chinese digital trade platforms.
The real economic multiplier lies in our SMEs, says Ng (pic: Samenta)
In addition, opportunities in renewable energy, waste management and energy-efficient manufacturing could foster joint ventures that benefit both nations, and potentially, global markets.
Samenta also highlighted the potential benefits for SMEs in industries such as hospitality, food and beverage (F&B) and creative sectors, noting that the resumption of group travel and stronger cultural exchanges would support these sectors.
'With the resumption of group travel and stronger cultural exchanges, SMEs in hospitality, F&B, and creative industries stand to benefit from this stronger tie-up with China.
'China's interest in ASEAN as a production base offers a chance for Malaysian SMEs to integrate into high-value supply chains, while promoting the concept of 'Made by Malaysia' — incorporating Malaysian intellectual property, branding and know-how, in the process,' said Ng.
However, Samenta raised concerns about the challenges that still exist for SMEs entering the Chinese market.
Regulatory complexities, IP protection issues, and the lack of sufficient resources, financing and scale put Malaysian SMEs at a disadvantage compared to their Chinese counterparts.
'China must recognise this disparity in capability, and ensure that any trade, any business, must not be lopsided to the disadvantage of Malaysia,' Ng said.
To ensure a fair and sustainable partnership, Samenta urged both the Malaysian and Chinese governments to accelerate the mutual recognition of standards and certifications — particularly in sectors like food, cosmetics and medical products — to reduce non-tariff barriers (NTBs).
Samenta also called for the inclusion of dedicated SME chapters in trade agreements like Regional Comprehensive Economic Partnership (RCEP) and future bilateral deals.
These chapters should have practical provisions to help address issues such as capacity disparity and regulatory concerns.
The association further urged the establishment of downstream programmes that would allow SMEs to participate in cutting-edge sectors like artificial intelligence (AI), satellite applications and green energy — either through joint ventures (JVs), vendor development or technology adoption.
'The real economic multiplier lies in our SMEs. We therefore urge both governments to create downstream programmes to ensure that SMEs can participate in AI, satellite applications, green energy and other emerging sectors — either JVs, vendor development or technology adoption,' Ng said.
Samenta also noted the need for transparent channels to ensure that Malaysian SMEs can participate in China-funded infrastructure and digital economy projects in Malaysia.
The association expressed frustration with past efforts to promote the digital free trade zone, which had limited impact on SME participation.
The call to action is clear: If China is serious about helping Malaysian SMEs access the Chinese market, it must facilitate SME onboarding onto cross-border digital platforms, especially those operated by Chinese tech firms. — TMR
This article first appeared in The Malaysian Reserve weekly print edition