THE Small and Medium Enterprises Association of Malaysia (Samenta) has lauded the 13th Malaysia Plan (RMK13) as bold and inclusive, but cautioned that labour reforms must be properly sequenced to avoid overburdening SMEs.
In a statement today, Sammenta said RMK13 sets a “bold and future-oriented vision” for Malaysia, particularly with its focus on high-growth, high-value (HGHV) industries, digital transformation, and economic inclusivity.
“We commend the Prime Minister for his strong leadership and for recognising the vital role of SMEs in national development,” said its national president Datuk William Ng.
Ng said the inclusion of SME scaling as a key pillar under RMK13 reflects a deep understanding of the sector and the challenges it faces.
“The Prime Minister’s emphasis on productivity, innovation, and public-private collaboration aligns closely with the aspirations of our SMEs, and we are encouraged by his call to transition from being mere suppliers to becoming creators and global players,” he said.
While initiatives such as the National AI Policy 2030, increased investment in Research, Development, Commercialisation and Innovation (R&D&C&I), and scaling SMEs in strategic sectors like halal, agritech, and logistics are welcome, Ng stressed that SMEs would require “strong support in terms of financing, training, and market access” to take advantage of these opportunities.
Samenta, however, raised concerns over the implementation pace of labour market reforms, warning that SMEs – particularly smaller firms – are at risk of being squeezed.
“The increase in the minimum wage to RM1,700, tighter regulations on foreign labour, the Multi-tier Levy System, and new compliance requirements through the e-Masco portal are all well-intentioned,” Ng said.
“But when implemented simultaneously without sufficient transition support, they will raise costs and compliance burdens to unsustainable levels.”
He urged the government to recalibrate its labour reform agenda through a “true tripartite approach” that links wages to productivity, provides greater automation support, and allows more flexibility in managing workforce size and underperformance.
“Without these, many SMEs, especially in labour-intensive sectors, may be squeezed further, resulting in job losses and reduced competitiveness,” Ng cautioned.
Ng added that Samenta stands ready to work closely with the government to ensure the successful implementation of RMK13.
“But we must get the implementation right. Let us not allow well-meaning policies to become barriers. Instead, let us build an economy where SMEs are empowered to innovate, grow, and create quality jobs for all Malaysians,” he said.
Source: https://themalaysianreserve.com/2025/07/31/samenta-urges-labour-reform-recalibration-under-rmk13-to-ease-sme-burden/