Wake up, intervene and assist the suffocating MSME, SME Bank told

The Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) was told to wake up to reality, intervene and save the micro, small and medium enterprises instead of claiming that the MSME is strong enough to contribute to a resilient economic growth this year.

Lim Guan Eng (PH-Bagan) reminded that the deputy president of the Malaysian Retail Chain Association Datuk Liew Bin in a presentation pointed out that the MSME are at a suffocation point due to the massive influx of foreign businesses.

“Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) relief president and chief executive officer Samad Majid Zain was reported to have said that Malaysia’s economic growth in 2026 is expected to remain resilient, driven by the strength of micro, small and medium enterprises (MSMEs) in sustaining domestic demand, employment, and productivity.

“SME Bank should wake up to the reality on the ground that MSMEs are at “suffocation point” and should instead intervene urgently to save their businesses.

“Whilst MSMEs are in crisis with limited business orders, SME Bank is on a different track talking about scaling up MSMEs, technology adoption and productivity enhancement across priority sectors with RM50 billion in financing and guarantee facilities.

“How can these help MSMEs when they have no business orders?

“The SME Bank should address these life and death concerns of MSMEs as well as how digital disruption caused by the massive entry of foreign companies and foreign e-commerce platforms with cheap goods has also hurt their business.

“Failure to address these concerns would see a repeat of the American experience of their manufacturing industry being hollowed out with massive job losses.”

Lim highlighted that the MSME are facing reduced business orders as it can’t compete with foreign companies’ production cost. This us compounded by e-invoicing and RSG standards, increased taxes, reduced profit margins and market shares.