Small and medium enterprises (SMEs) are the heartbeat of Malaysia’s economy, and empowering them means driving the nation’s next wave of growth and innovation, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz at the ASEAN SME Economic Conference 2025.
Delivering the closing keynote, Tengku Zafrul underscored that Malaysia’s SMEs contribute nearly 40% to GDP and almost half of national employment, while across ASEAN, they make up over 97% of all businesses and employ the majority of the region’s workforce.
“You are not small, you are strategic. You are the future of ASEAN,” Tengku Zafrul told SME owners and entrepreneurs, while emphasising that when SMEs rise, Malaysia rises.
The minister also highlighted that the New Industrial Master Plan (NIMP) 2030 places SMEs at the centre of Malaysia’s industrial transformation, shifting their role from local suppliers to regional players in high-value sectors.
“We’re moving from grants to growth from one-off support to long-term empowerment. Financing tools, export facilitation and digitalisation incentives are not just policies, they’re bridges to new markets and new futures,” he said.
Under NIMP 2030, the minister said his ministry aims to embed SMEs more deeply into global value chains, particularly in advanced manufacturing and technology-driven industries.
Meanwhile, Tengku Zafrul urged SMEs to adopt emerging technologies from artificial intelligence (AI) and robotics to quantum computing, Internet of Things (IoT) and generative AI to raise efficiency, quality and competitiveness.
He cited examples of Malaysian firms already leveraging AI-powered quality control, robotic process automation and IoT sensors to improve production, manage costs and meet global standards.
“These technologies enable SMEs to scale smarter, respond faster and become trusted suppliers in global supply chains,” he said.
He encouraged businesses to tap into the support of agencies like SME Corp, MIDF, Credit Guarantee Corporation and MATRADE, particularly through digital platforms such as MATRADE’s MADANI Digital Trade platform, which helps firms connect with international buyers and simplify cross-border trade.
Tengku Zafrul also emphasised the importance of inclusive financing models and storytelling in helping SMEs expand and inspire others.
“Capital should never be the reason a great idea stays small,” he said, noting that the government is working with banks and development agencies to unlock blended finance, export credit facilities and guarantee schemes, with a focus on women- and youth-led SMEs.
He cited success stories like Farm Fresh, which grew from 60 cows to owning farms in Australia, and Toko, a creative platform promoting Malaysian art and culture, as examples of SMEs that scaled through perseverance and strategic partnerships.
As Malaysia chairs several ASEAN economic initiatives, Tengku Zafrul reaffirmed that empowering SMEs will strengthen the region’s collective competitiveness.
“As we empower our SMEs, we strengthen Malaysia’s role in ASEAN. We are not just a player; we are a partner, a connector and a catalyst,” he said.
Source: https://www.businesstoday.com.my/2025/10/09/when-smes-rise-malaysia-rises-minister-says/