Former Finance Minister Lim Guan Eng has urged the government to implement a mandatory buy-local policy to protect micro, small and medium enterprises (MSMEs) from collapsing under unfair competition.
In a social media posting, Lim highlighted that enforcement actions against the misuse of social visit visas by foreign visitors for business purposes have been ongoing for decades, yet have failed to shield local traders from the impact of foreign goods and services flooding the market.
“It would be unrealistic to expect any fresh enforcement action alone to protect MSMEs and local small traders,” Lim wrote, advocating for a policy that requires at least 50% of materials and products in government and private contracts to be sourced locally.
He warned that many MSMEs are operating well below capacity, with some considering closure by year-end if urgent action is not taken.
Lim noted that foreign companies often source all materials from their home countries, leaving local manufacturers without business, while tariffs and foreign product dumping further squeeze domestic firms.
MSMEs contribute 38% of Malaysia’s GDP, 40% of employment and 13% of exports, he stressed, underlining the high economic stakes.
Lim pointed to Indonesia and other countries that have successfully implemented similar buy-local requirements without harming free trade, and called on Malaysia to follow suit.
“Only with a 50% local products ruling can enforcement measures against visa misuse succeed in protecting MSMEs and local traders,” he added, framing the policy as critical to the survival and competitiveness of Malaysia’s entrepreneurial ecosystem.
