The SME Association of Malaysia is calling for urgent intervention from the government as businesses face mounting pressure from rising oil prices and global trade uncertainty.
President Dr Chin Chee Seong warned that Malaysian micro, small and medium enterprises (MSMEs) are confronting a “triple pressure” scenario: Escalating geopolitical tensions in the Middle East, a volatile global tariff environment and lingering post-pandemic financial strain.
He shared that surging oil prices above US$100, driven by Middle East tensions, are raising costs across logistics, manufacturing and food supply chains.
“At the same time, shifting US tariff policies are creating uncertainty for exporters, complicating planning and weakening order visibility.
“These challenges are hitting businesses already struggling with weak demand, rising operating costs and tight cash flow, thus, raising the risk of wider economic spillover.
To stabilise the sector, Chin said the association has proposed a series of targeted measures including a six-month loan moratorium or repayment flexibility for affected MSMEs, expansion of emergency financing to at least RM500 million, low-cost working capital loans to ease immediate liquidity strain and enhanced SJPP guarantees to improve access to funding.
“We are also urging for continued fuel price stabilisation, including RON95 subsidies, as well as flexible loan restructuring without penalties.
“Additional measures include stronger export diversification support via trade agencies, temporary tax and statutory payment flexibility, and better coordination across ministries and financial institutions,” Chin added.
Chin stressed that early, decisive action is critical to prevent a wave of defaults, layoffs and closures, particularly as MSMEs make up nearly 97% of Malaysia’s businesses.
“Protecting MSMEs is essential to preserving jobs, supply chains and economic stability,” Chin said, adding that timely support would help businesses weather current volatility.
