Latest news with #SmallandMediumEnterprisesAssociationMalaysia
New Straits Times
4 hours ago
- Business
- New Straits Times
Industry association urges permanent LPG permit exemption for small businesses
KUALA LUMPUR: The Small and Medium Enterprises Association Malaysia (Samenta) has urged the government to make permanent the exemption from the Scheduled Controlled Goods Permit (PBKB) for micro and small-scale food and retail businesses using subsidised liquefied petroleum gas (LPG). "We hope the amendments to the Control of Supplies Regulations 2021 will recognise the unique needs of micro and small enterprises and introduce a permanent exemption for those in essential sectors like food and retail. "At the very least, a simplified, tiered or digital-friendly permit process should be introduced," said its president Datuk William Ng today. Samenta welcomed the cabinet's move to exempt micro and small-scale businesses, describing it as a timely and much-needed relief for businesses grappling with rising operational costs and declining consumer spending. "Many of these businesses operate on thin margins, and the ability to continue accessing subsidised LPG without the added administrative burden of obtaining a PBKB helps ease pressure on both cost and compliance," Ng said. However, the group cautioned that reinstating the permit requirement in full could harm informal and micro businesses, which may struggle with the administrative process, including documentation and digital access. "It could also unintentionally drive some of them out of the formal supply chain or into non-compliance, creating enforcement challenges and disrupting livelihoods," he said. Ng also called on the government to strengthen engagement with industry bodies ahead of future policy changes. "We urge the government to ensure that future regulations consider the realities faced by smaller businesses, and to enhance consultation with industry groups like Samenta before implementation," he added. Earlier today, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the Cabinet had agreed that micro and small-scale food and retail businesses may continue using subsidised LPG cylinders without a PBKB until October. Armizan said that the exemption would remain in effect throughout the Ops Gasak enforcement period and until amendments to the Control of Supplies (Amendment) Regulations 2021 are finalised.
New Straits Times
24-05-2025
- Business
- New Straits Times
NST Leader: Integration of Asean's MSMEs
The 46th Asean Summit to be held in Kuala Lumpur tomorrow and on Tuesday can be a defining one for the Southeast Asian bloc's economy. But the 10 members must seize the moment to make that happen. Obviously, there are many intra-Asean issues that are vying for attention, one such being the bloc's goal to end the civil war in Myanmar. But one is very critical: integration of the bloc's micro, small and medium-sized enterprises (MSMEs). Besides, this is very much in line with Prime Minister Datuk Seri Anwar Ibrahim's vision of seeing a more robust economic integration of Asean. There is no denying that similar calls have been made before, the last being made by the Philippines at the 30th Asean Summit in Manila. The rationale for such calls is clear: MSMEs, numbering 71 million —with 65 million in Indonesia alone — make up 97 per cent of Asean's economy and provide 85 per cent of employment in the region. That is one power the bloc must bank on. But integration is happening in dribs and drabs. When the 10 leaders of the region meet in Kuala Lumpur, they must change this. Or at least agree to agree. To be sure, there are challenges. The 10 economies are different. Singapore, for example, is a developed nation, leaving behind the rest in the bloc by some enviable distance. Myanmar is perhaps the least developed in Asean, made worse by the military coup in February 2021. With civil war raging, and about 10,000 people killed up to last year and 3.5 million people internally displaced, there is little opportunity to move the economy forward. To the junta, bullets come before business. Asean has made great efforts to get the junta to end the bloodshed, but four years on, the military leaders refuse to budge. By all accounts, Myanmar's economy is nearing collapse. Some Western analysts are calling it a failed state. In 2021, Myanmar had 126,237 MSMEs, the smallest contributor to the 71 million in the bloc. It is hard to say how many are still operating. Thailand comes in second with 3.2 million MSMEs, and Malaysia is third with 1.1 million enterprises. The rest report numbers under a million, with Laos registering the lowest at 62,000. Given the differing treatment across the region about what MSMEs are, we may be comparing apples and oranges. Be that as it may, MSMEs power the bloc's economies. No question about their contribution to the gross domestic product, employment and social development. If integration is to work, a number of roadblocks must be removed. Most critical are structural barriers, to use the language of the Small and Medium Enterprises Association Malaysia (Samenta). It lists inconsistent product standards, fragmented licensing systems and slow, non-digitised Customs procedures among them. This divide requires serious attention. As Samenta told the Business Times on Friday, there cannot be economic integration in Asean without the inclusion of MSMEs.
Malaysian Reserve
23-05-2025
- Business
- Malaysian Reserve
Samenta: No real ASEAN integration without MSMEs
by AZALEA AZUAR THE Small and Medium Enterprises Association Malaysia (Samenta) is urging ASEAN leaders to place micro, small and medium enterprises (MSMEs) at the forefront of discussions as Malaysia hosts the ASEAN Summit 2025. National president Datuk William Ng said the summit is expected to impact the region's support and scaling of its MSMEs. 'We call on ASEAN leaders to seize this moment: Reduce non-tariff barriers (NTB), leverage geopolitical shifts, invest in creative and digital sectors, and create a level playing field in trade and compliance. 'A resilient ASEAN must start from the ground up, with our small businesses at the core of our shared future,' he said in a statement. Ng stressed how MSMEs make up a majority (more than 97%) of all business in ASEAN and are responsible for 85% of employment in several member states. Despite their abundance, they only contribute 30% to 40% of the region's GDP and 22% of intra-regional trade due to structural barriers and limited scale, innovation and integration into regional value chains. Ng raised concerns regarding the low ASEAN trade levels as it represents a missed opportunity despite their proximity and cultural familiarity. ASEAN trade is important for MSMEs for internalisation but NTB such as inconsistent product labelling, cumbersome customs clearance and poorly coordinated regulations in the agrifood sector make it inefficient and costly. 'ASEAN must take bold steps to address these issues through enforceable agreements on NTB reduction, expanded mutual recognition arrangements (MRAs) and greater operationalisation of the ASEAN Single Window for MSMEs,' Ng said. Ng also advised ASEAN to present itself as a neutral and business-friendly bloc to absorb global investments and new manufacturing mandates as global supply chains are shifting and companies are diversifying away from single country dependencies. Therefore, he suggested enhancing the capacity of MSMEs to avoid entrenching economic dualism and widening inequality. 'ASEAN must also remain vigilant against rising protectionism in a fragmented world and ensure reciprocal market access is honoured. 'While large firms often have the resources to adapt or lobby, MSMEs are typically the first casualties of sudden tariffs, quota restrictions or import bans. 'ASEAN must be proactive in trade defence, making sure our MSMEs are not collateral damage in global economic disputes,' Ng said. ASEAN MSMEs face a middle-income trap due to low-value sectors, and for them to escape the trap, they need investment in innovation grants, regional research and development (R&D) centres, and cross-border talent and technology platforms. This is critical not only for income growth but also for building globally competitive MSMEs that can expand beyond their home markets. Moreover, the ASEAN Digital Economy Framework Agreement should promote inclusive platforms, cross-border e-commerce and data governance policies, while focusing on realistic environmental, social and governance (ESG) standards for smaller firms. Ng also acknowledged the high potential of the creative economy for MSMEs, noting that it is scalable, culturally rooted and has strong export prospects. 'ASEAN must include the creative economy in its regional economic integration strategy, with a focus on copyright and intellectual property (IP) protection for creators, market access and mobility for creative professionals and creative clusters and infrastructure, especially for youth and women-led enterprises,' he said.
New Straits Times
23-05-2025
- Business
- New Straits Times
No real Asean integration without MSME inclusion, says Samenta
KUALA LUMPUR: There can be no real Asean integration without real micro, small and medium enterprises (MSMEs) inclusion, said the Small and Medium Enterprises Association Malaysia (Samenta). Its national president Datuk William Ng said Asean leaders must place MSMEs at the heart of the region's integration strategy to boost the group's otherwise low intra-regional trade. Policymakers, he added, must seize a "once-in-a-generation" opportunity to address structural barriers holding back MSMEs and to reposition them as key drivers of innovation and resilience in the region. "MSMEs make up over 97 per cent of all businesses and contribute to more than 85 per cent of employment in many Asean countries, yet their contribution to gross domestic product and intra-regional trade remains disproportionately low," Ng said in a statement. He cited various non-tariff barriers, from inconsistent product standards and fragmented licensing systems to slow, non-digitised customs procedures, as key impediments that make cross-border trade costly and inefficient for smaller firms. "These barriers are structural and long-standing. If we are serious about regional economic integration, we must adopt enforceable commitments to reduce them," Ng said, adding that mutual recognition arrangements and wider use of the Asean Single Window must be prioritised. Ng also warned that MSMEs risk being sidelined amid shifting global supply chains, such as the China Plus One strategy and continued geopolitical tensions. "This is an ideal moment for Asean to present itself as a neutral, business-friendly bloc. But that will only be credible if MSMEs are empowered to compete and contribute as equal partners in regional growth," he said. Samenta also urged the region to invest in dedicated innovation grants, establish regional centres for research and development, and support platforms for cross-border collaboration in talent and technology. It also called for more inclusive implementation of Asean's digital and environmental, social and governance agendas, and greater support for creative industries, particularly those led by youth and women, as a new growth frontier for MSMEs. "The Kuala Lumpur Asean Summit must be a turning point. A resilient Asean must begin from the ground up, with our small businesses at the core of our shared future," Ng said.
Malaysian Reserve
22-04-2025
- Business
- Malaysian Reserve
Samenta calls on China to ease digital access for Malaysian SMEs
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
