The Federation of Malaysian Manufacturing has called stakeholders to make it an agenda to help more Malaysian businesses scale into stronger Small and Medium Industries (SMEs), mid-tier companies and future national champions.
FMM President, Mr Jacob Lee said Malaysia’s focus should shift from helping businesses remain SMEs to enabling them to grow beyond the SMI stage. “Malaysia needs more companies that successfully scale beyond the SME stage and become strong SMEs, mid-tier companies and eventually national champions.
The goal should not be for businesses to remain SMEs indefinitely, but to support them through the critical growth phase where they can create greater economic value, quality jobs and stronger industrial capabilities.”
The FMM President also reiterated FMM’s proposal to revise the manufacturing SME threshold to annual sales turnover of up to RM100 million and up to 300 full-time employees, better reflecting current business realities and supporting companies during
their most challenging stage of expansion.
“This proposal is not simply about changing numbers. It is about recognising economic realities and providing growing companies with continued access to support mechanisms during the most challenging stage of their journey.
Ultimately, it is about helping more companies move from RM10 million to RM50 million, and from RM50 million to RM100 million in annual revenue.”
The FMM has also called for a review of the SME corporate tax threshold, guided by a simple principle: leave more capital in the hands of businesses so they can invest, innovate and grow. He added that every ringgit retained and reinvested in industry helps
create stronger businesses, better jobs and more sustainable wage growth.
The FMM President also emphasised the importance of strengthening cash flow for SMEs.
“For many SMEs, cash flow is the difference between growth and survival. Strong sales mean little when payments are delayed or invoices remain unpaid. We need stronger payment discipline, better protection for suppliers and more effective debt recovery mechanisms. At the same time, SMEs must strengthen their credit management practices. Sustainable growth depends not just on making sales, but on turning sales into cash.”
