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New Straits Times
10 hours ago
- Business
- New Straits Times
Philippines, SME Association of Malaysia to spur regional support, bilateral ties
KUALA LUMPUR: The Philippines and the SME Association of Malaysia recently discussed potential cross-border collaboration, aiming to boost regional support and economic ties between the two countries. Key topics on the agenda included the digitalisation of small and medium enterprises (SMEs), expanding partnerships in the halal and innovation sectors, and creating more investment opportunities for businesses. The Philippines' Department of Trade and Industry (DTI) secretary Ma. Cristina A. Roque expressed the nation's willingness to deepen engagement with Malaysian SMEs and reiterated her commitment to fostering inclusive economic growth across Asean. She extended a formal invitation to SME Association to take part in the 48th Asean SME Summit in 2026, which will be hosted by the Philippines, as a step toward enhancing regional collaboration. SME Association national president Dr Chin Chee Seong said the meeting demonstrated both countries' shared commitment to strengthening regional collaboration. He also reaffirmed the association's dedication to strengthening regional collaboration and supporting the Asean Economic Community through strategic discussions and joint efforts.
The Star
06-05-2025
- Business
- The Star
A refined approach needed to support SMEs
PETALING JAYA: A more nuanced approach to supporting small and medium enterprises (SMEs) is needed, in addition to the latest measures announced by Prime Minister Datuk Seri Anwar Ibrahim in response to the tariffs imposed by the United States on Malaysia. In his speech to Parliament yesterday, Anwar announced that the government has increased the Business Financing Guarantee Scheme by RM1bil to assist SME exporters in obtaining loans from banks. The government has also increased soft loans from development financial institutions by RM500mil to support entrepreneurs. Currently, a baseline tariff of 10% has been imposed on all goods entering the United States from all over the world, while the 'reciprocal tariffs' announced on April 2, which in Malaysia's case stands at 24%, have been suspended for a 90-day period from April 9 pending discussions. SME Association of Malaysia national president Dr Chin Chee Siong told StarBiz that for financially sound businesses that need bridging loans, these measures would help. 'This is good for businesses that need funding immediately, for example, a tourism business that need cash flow to run tours. If the business is good, then it will be fine,' he said. Chin noted that SMEs account for at most 13% of the country's total exports, but the tariffs and the government's measures present opportunities for further growth. 'The government should encourage more joint ventures with foreign businesses, such as those from China, in which Malaysians take up the majority stake and run them,' he said. Chin pointed out that the funding from these measures can be better deployed by enabling Malaysian businesses to invest in these ventures. 'Malaysians will not mind bearing the risk if they are running the business. New technology and knowledge will be brought in, and there will be employment opportunities for Malaysians,' he added. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said financing alone would do little to address the root cause, as Malaysian businesses must reposition themselves to compete with low-cost manufacturers in China and Vietnam. 'Unless financing is explicitly tied to productivity upgrades, export diversification, or supply chain reconfiguration, its impact will be marginal,' he noted, adding that transition grants, market-entry subsidies, or strategic tax relief would do more to catalyse the structural shifts needed. On whether SMEs should take on more loans, Sedek said: 'The government's reliance on credit-based solutions assumes that exporters are facing a liquidity issue, when in fact, many are grappling with a profitability crisis triggered by weak demand, tighter margins and intensifying competition from China's lower-cost goods.' Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid does not believe the measures will impact Malaysia's fiscal deficit target of 3.8% of gross domestic product this year. He explained that the extra RM1bil are guarantees, while grants, which are a form of transfer that need not be repaid, would have an impact. He further noted that government assistance aimed at accelerating productive capacity – such as capacity-building programmes for SMEs to make their businesses more resilient – would be preferable to subsidies for consumption, which benefit people immediately. 'At the end of day, it is a policy choice and whether the government can afford to fund the programmes,' Mohd Afzanizam said.
Straits Times
05-05-2025
- Business
- Straits Times
Malaysia's small businesses see red over plan to extend visa-free scheme for China visitors
Melaka Photographers Society chairman Alan Neh (left) and deputy chairman Jordison Tan are among the one million micro, small and medium enterprises in Malaysia who are worried about visa-free visitors from China muscling into their business. ST PHOTOS: CHEO YEE JING – Malaysia and China's plan to extend their mutual visa-free visits from 30 days to 90 days will mean more tourists flocking to historic Melaka, but local photography studio owner Alan Neh is not celebrating. He, like many small business owners across the country, is concerned that the growing influx of mainland Chinese will lead to those who illegally work while on tourist visas, and disrupt their livelihoods. In March , Mr Neh, 40, was approached by a Chinese citizen offering to rent his studio as a changing and make-up area for Chinese tourists on photoshoots. But Mr Neh rejected his offer , which was only half the prevailing market rate. 'Firstly, how could they operate here without a legal work permit? Secondly, they might be targeting the local wedding photography market, which is the primary source of income for our members,' Mr Neh, chairman of the Melaka Photographers Society, told The Straits Times. Fear of these newcomers is also fuelled by their 'neijuan', or overcompetitive attitudes, honed by tougher operating conditions in China . Echoing Mr Neh's concerns, deputy chair Jordison Tan says the society's 20-odd members have experienced a 70 per cent drop in business in the past 1.5 years due to competition from mainland Chinese photographers operating in Melaka. 'It all started from around 2024,' said Mr Tan, 38. He was referring to the start of mutual 30-day visa-free travel between Malaysia and China from December 2023, which drew around 3.7 million mainland Chinese tourists to Malaysia in 2024, up 131 per cent from 2023. Ph otographers Mr Neh and Mr Tan are among the one million micro, small and medium enterprises (MSMEs) in Malaysia who are worried about visa-free visitors from China muscling into their business. MSME s, which account for nearly half of Malaysia's workforce, are feeling the strain from the China factor beyond the photography sector. Businesses such as tour guide services, auto workshops, renovation contractors and beauty salons are also affected, said SME Assoc iation of Malaysia's president Chin Chee Seong. 'Some mainland Chinese tour groups bring in their own guides, which is clearly illegal. Some auto workshops here are using cheaper spare parts and workers from China too. 'If the impact is already significant with a 30-day visa-free stay, imagine the consequences if that extends to 90 days,' said Selangor-based Mr Chin, who represents 13,000 SME members nationwide. Malaysia-China Chamber of Commerce president Loo Kok Seong said local SMEs are concerned about the influx of 'super-low-price competitors' if the 90-day visa-free policy for Chinese tourists takes effect. 'There is nothing wrong (with Chinese enterprises) seeking business opportunities here, but we prefer a cooperative model with local businesses to align with the principle of sustainability,' Mr Loo was quoted as saying by Sin Chew Daily on May 4. Representing 2,000 members, he added that mainland Chinese enterprises should be properly registered and operate legally in Malaysia. In the meantime, Malaysia's consumers have been inundated with social media advertisements offering low-priced packages for portrait shots by China-based businesses. This cut-throat rivalry has drawn complaints from Malaysia's photography industry, comprising 100 shop lots, 500 studios, and 2,000 freelance photographers, according to Mr Neh's estimates. A viral social media post on April 23 by a local freelance photographer lamented that mainland Chinese photographers were offering packages comprising two portrait shots to Malaysian customers for just RM299 (S$90). This raised eyebrows among local photographers and studios, who typically charge around RM2,000 for 30 photos. One mainland Chinese outfit styling itself as a 'China Celebrity Portrait Photographer' has posted on social networking sites Instagram and Xiaohongshu (RedNote), offering its services in Kuala Lumpur, Penang, Johor Bahru, and Kuching. Its RM299 basic portrait package includes two makeup looks and two costume changes, with additional photos priced at RM300 each. Anecdotal evidence however, shows that local photographers can still compete on service, if not pricin g. One disgruntled customer is sales executive Kommy Yee, 31, who patronised a photo studio in Kuala Lumpur in October 2024. She said the team of 15 comprised makeup artists and photographers who spoke Mandarin 'with a Beijing accent'. While impressed with the wide variety of attire and accessories on hand, Ms Yee said the three-hour session felt rushed and involved aggressive sales tactics. In the end, she spent RM5,199 – well over her original RM3,600 budget – and found the heavily AI-edited photos unnatural and not to her liking. 'I won't be going back,' she told ST. On the plus side, these mainland Chinese set-ups are well equipped, with bigger teams and a broad range of outfits and costume jewellery options for the portrait photography shoots, noted veteran photographer Sharkman Beh , 37, who has 15 years of experience under his belt . ' China has helped raise awareness of portrait photography. With more people exposed to their (working) model, we have a chance to offer a more refined customer experience,' he said, adding however that tourist visas should not be used for business purposes. Rather than viewing the influx as a threat, Mr Sharkman Beh believes Malaysian photographers should see it as a catalyst for growth. PHOTO: COURTESY OF SHARKMAN BEH Under the current visa-free arrangement, China nationals are allowed to enter Malaysia strictly for social visits , but are not permitted to work, engage in direct sales, or distribute goods . In a video posted on its Facebook page on April 25 addressing the issue of overstayers , Malaysia's Immigration Department emphasised its commitment to strengthening national security by enforcing immigration laws, while also supporting the easing of visa terms for visitors from China. ST has approached Malaysia's Immigration Department and Home Ministry for a response on the issue of tourists working or conducting business illegally in the country. For now, the start date for the 90-day visa for China visitors has not been fixed. But for Mr Neh, the damage to his 16-year-old business has already begun. 'We don't fear competition, but it should follow the right channels. I worry that if these issues aren't tackled, mainland Chinese will be the boss in our land by the next 10 years,' he said. Lu Wei Hoong is Malaysia correspondent at The Straits Times. He loves to travel and discover hidden gems of stories. Join ST's Telegram channel and get the latest breaking news delivered to you.
New Straits Times
23-04-2025
- Business
- New Straits Times
SME Association to host charity golf tournament on June 6
KUALA LUMPUR: The SME Association of Malaysia is hosting a charity golf tournament, the SME International Charity Golf 2025, at the Kota Permai Golf & Country Club, Selangor, on June 6. The event, which will be held from 11am to 10pm, aims to bring together business leaders, entrepreneurs, and industry stakeholders for a memorable day of golf, strategic networking, and social responsibility. "This signature event is expected to attract over 120 prominent professionals and business owners from Malaysia and the Asean region. "The occasion carries a dual mission, 50 per cent of proceeds will be donated to charitable homes supporting underprivileged and marginalised communities, while the remaining 50 per cent will be allocated to the SME Development Fund, a dedicated initiative to support the growth and capacity building of small and medium enterprises across the country," it said in a statement. In line with the association's commitment to fostering impactful partnerships, companies and organisations are warmly invited to participate as sponsors of this prestigious event. Sponsorship opportunities offer valuable brand visibility, access to networking with influential decision-makers, and a meaningful avenue to demonstrate corporate social responsibility. "Support from the business community is essential to amplifying the reach and success of the tournament, while making a tangible difference to both charitable causes and the SME ecosystem," it said. Deputy Digital Minister Datuk Wilson Ugak Kumbong will officiate the event. He said the SME International Charity Golf 2025 is more than just a sporting event — it is a vital platform for connecting entrepreneurs, industry leaders, and innovators to champion economic growth and inclusive development. "As Malaysia continues its digital transformation journey, it is essential to empower SMEs through collaboration and exposure to digital solutions," he said in the statement. He said such events not only foster strategic networks but also help enhance competitiveness, sustainability, and global reach for local businesses. Meanwhile, SME Association president Chin Chee Seong said the SME International Charity Golf 2025 is a meaningful initiative that reflects the spirit of business, digital progress, and social responsibility. "As we work towards a digitally empowered SME landscape, this event provides a valuable platform for industry players to connect and collaborate to drive growth. "At the same time, we are proud that this tournament supports charitable causes, demonstrating that economic progress and compassion for the community can go hand in hand. "Together, we can uplift both businesses and those in need," said Chin. Participation in the SME International Charity Golf 2025 is open to individuals and corporate teams. The registration fee includes green fees, a twin-sharing buggy and caddy, a tournament T-shirt, a premium goodies bag, lunch, and dinner. In addition to a day of sport and camaraderie, participants can look forward to winning attractive novelty prizes, trophies, and hole-in-one rewards.
