With Budget 2027 set to be tabled in Parliament by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim on Oct 9, the SME Association of Malaysia is urging the government to ease mounting business costs, improve access to growth capital and put greater emphasis on building Malaysian companies capable of competing regionally and globally.
Its national president Dr Chin Chee Seong said the challenge is no longer simply the availability of assistance, but whether existing support delivers measurable improvements in productivity, investment, growth and competitiveness.
He said small and medium enterprises (SMEs) are facing rising labour, utility, financing, tax and compliance costs at the same time as automation, digitalisation and artificial intelligence reshape business models and workforce requirements.
Among the association’s key Budget 2027 proposals is a Cumulative SME Cost and Regulatory Impact Assessment to examine the combined effects of policy and regulatory changes, remove duplicative compliance requirements and provide businesses with adequate transition periods.
Dr Chin also called for any further increase in the current RM1,700 minimum wage to be deferred for now, arguing that SMEs should first be given room to improve productivity, automate and strengthen their workforce so future wage growth can be supported sustainably.
Financing should, meanwhile, be better matched to different stages of SME growth, he said. The association proposed a wider mix of grants, guarantees, debt, equity, co-investment and private capital spanning working capital, machinery and automation, digital and ESG transformation, commercialisation and overseas expansion.
Dr Chin also wants Budget 2027 to ensure that high-value foreign direct investment produces stronger domestic spillovers through local procurement, supplier development and technology and knowledge transfer. Malaysian SMEs should be given clearer pathways to qualify for procurement opportunities across multinational corporations, government-linked companies and government agencies.
Technology support should similarly focus on measurable productivity gains, with stronger incentives for automation, robotics, artificial intelligence, cloud services, cybersecurity and smart manufacturing, backed by workforce training, apprenticeships and closer TVET-industry links.
Other proposals include strengthening SME ESG readiness, accelerating innovation and commercialisation, expanding access to overseas markets and establishing a single SME Development Gateway to better coordinate financing, incentives, technology, skills and export assistance.
Dr Chin said Budget 2027 should ultimately move beyond measuring how much assistance is announced and focus instead on what that support actually changes within businesses.
The goal, he said, should be to produce Malaysian SMEs that are more productive, financially stronger, technologically capable, innovative and export-oriented — while creating a stronger pipeline of home-grown companies able to scale globally.
