The Small and Medium Enterprises Association has expressed its enthusiasm for strengthening collaboration between Malaysian and Chinese SMEs, following the recent visit of Chinese President Xi Jinping to Malaysia.
It views the renewed commitment between the two nations as an opportune moment to enhance trade and investment ties, particularly for the SME sector.
The association highlighted the significant potential for SMEs in both countries, given China’s position as Malaysia’s largest trading partner and the reaffirmation of initiatives like the Belt and Road Initiative (BRI), digital cooperation, and sustainable development.
Malaysian SMEs are encouraged to leverage Chinese digital trade platforms to expand exports in key sectors such as halal food, health supplements, and artisanal products. Additionally, collaborations in renewable energy, waste management, and energy-efficient manufacturing are seen as avenues for new markets and joint ventures. The resumption of group travel and stronger cultural exchanges is also expected to benefit SMEs in hospitality, food and beverage, and creative industries.
The association also noted China’s interest in ASEAN as a production base, which presents an opportunity for Malaysian SMEs to integrate into high-value supply chains and promote the ‘Made by Malaysia’ concept.
However, the President also addressed the challenges facing this closer partnership. These challenges include regulatory complexity, market entry barriers, concerns over intellectual property (IP) protection in China, and the disparity in resources, financing, and scale between Malaysian SMEs and Chinese firms.
To fully realise the potential of Malaysia-China SME collaboration, the association urged both governments to accelerate the mutual recognition of standards and certifications, reduce non-tariff barriers, and ensure trade agreements include provisions to address the disparity in capacity and regulatory concerns.
The association also called for downstream programs to ensure SME participation in sectors like AI, satellite applications, and green energy, and emphasized the need for transparent channels for SME involvement in China-funded projects in Malaysia.
Furthermore, it urged China to facilitate the onboarding of Malaysian SMEs onto cross-border digital platforms, particularly those operated by Chinese tech firms, to enhance access to the Chinese market.
Source: https://www.businesstoday.com.my/2025/04/20/sme-collaboration-with-china-could-be-the-next-catalyst/