By Yasmin Ramlan
SHAH ALAM, May 20 — As global trade tensions mount, Selangor continues to extend strong support to small and medium enterprises (SMEs) with state-backed programmes.
These include targeted financing schemes, digitalisation efforts, and green innovation grants, all designed to help businesses grow beyond domestic borders.
However, with rising global uncertainties, including recent tariff hikes by the United States, local industry leaders are urging the federal government to scale up efforts in promoting Malaysian-made products locally and internationally.
SME Association of Malaysia president Chin Chee Seong said while most SMEs are not directly impacted by the new rates, as they do not export to the US, the ripple effect will be felt in the broader supply chain, including in logistics and transport.
“That is why it is crucial for SMEs to know how to diversify their product reach and not rely on just a single market,” he told Media Selangor.
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An Agricultural Entrepreneur Initiative participant under the People's Income Initiative packs cucumbers to be sold at Pelangi Damansara, Petaling Jaya, on April 25, 2025. — Picture by FIKRI YUSOF/MEDIA SELANGOR[/caption]
Early this month, Prime Minister Datuk Seri Anwar Ibrahim said during a dialogue session that the US tariffs are a timely reminder for Malaysia to strengthen domestic demand for homegrown products and build greater economic resilience.
He said while the tariffs are generally seen as unfavourable, they are an opportunity for “creative destruction” by turning global disruptions into momentum for local innovation and self-reliance.
Chin pointed out that SMEs contribute only about 12 per cent of Malaysia’s total exports, suggesting greater concern lies with the domestic market, where Malaysian-made products still face perception challenges.
“There are many consumers who believe foreign products are much better than Malaysian-made ones — it’s just a matter of perception.
“Over the past couple of years, Malaysian products have been gaining a reputation not only locally but also globally. This is the reality we have to face, and it’s where the government can step in to help.”
He said promoting Malaysian products and encouraging local consumers to support them will cushion the impact of US tariffs and external pressures on the economy.
Chin’s comments came despite the decades-long Buy Malaysian Products campaign, launched in1984 by the Domestic Trade and Consumer Affairs Ministry as a long-term effort to encourage Malaysians to back local businesses.
Now in its 40th year, however, the campaign has become less visible, with fewer advertisements on television, radio, and other traditional media.
Unlike its earlier years — when it was prominently featured in TV commercials, radio jingles, and public events — current promotions appear to be more subdued approach.
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A trader grills spatchcock chicken at a Ramadan bazaar on the first day of the fasting month, in Ijok, Kuala Selangor, on March 2, 2025. — NUR ADIBAH AHMAD IZAM/MEDIA SELANGOR[/caption]
Tap into trade deals
Chin stressed the importance of long-term strategies, including for SMEs to expand their exports by tapping into opportunities offered by trade deals like the Regional Comprehensive Economic Partnership and Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
“In the short term, however, SMEs can benefit by tapping into stronger local demand instead of relying solely on exports,” he said.
He added that Malaysia must avoid overdependence on any single market, especially in light of the recent US tariffs, and explore alternative markets such as BRICS.
“This is where government support plays a crucial role in helping SMEs expand and remain resilient,” he said.
Malaysia became an official BRICS partner on January 1, following the 16th BRICS Summit in Kazan held in October 2024. BRICS comprises Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates.
In recent years, Chin said many Malaysian manufacturers are starting to move into different value chains as part of their expansion strategy, supported by various government incentives, including the recently announced RM10 billion Syarikat Jaminan Pembiayaan Perniagaan, which provides faster financing access for SMEs targeting exports.
On the broader trade landscape, he said Malaysia may benefit from lower tariffs amidst global trade tensions, presenting new opportunities if navigated wisely.
He also highlighted the importance of positioning Malaysian-made halal products on the global stage.
“Halal is the main key. The halal market is worth billions, and Malaysia holds a clear advantage. We shouldn’t just rely on tariff differences to gain an edge,” he said.
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An online Ramadan bazaar trader wraps ‘popiah’ spring rolls at his home, during the movement control order due to the outbreak of Covid-19, in Sungai Buloh, on April 11, 2020. — Picture by REUTERS[/caption]
Depend on many, not one
While Chin emphasised the urgency for local businesses to reduce reliance on a single export market and explore global opportunities such as the halal industry, the Selangor government is already laying the groundwork to support these initiatives.
State executive councillor for youth, sports, and entrepreneurship Mohd Najwan Halimi said Selangor is proactively equipping its SMEs to scale up and strengthen domestic production through strategic programmes and support mechanisms.
Among these are the U-Plats Expand, which supports youth and early-stage entrepreneurs who have completed basic entrepreneurship training by offering tailored mentorship and business matching to help them grow locally and globally.
“To help SMEs and manufacturers in Selangor remain competitive amid shifting global trade dynamics, the state government through its agencies can implement targeted aid across several key areas, such as financial support, regulatory simplification, infrastructure development, and market access,” he told Media Selangor.
Najwan added that the Selangor Information Technology and Digital Economy Corporation offers matching grants for digitalisation, including support for e-commerce platforms, cloud accounting, and digital marketing — tools seen as essential in modern business operations.
To ease operational bottlenecks, he said the Speed Selangor Policy, under Invest Selangor, aims to streamline business licensing, planning permissions, and post-construction compliance procedures, allowing SMEs to scale their operations more efficiently.
“This policy streamlines bureaucratic processes related to business licensing, planning permissions, and post-construction compliance, such as Certificate of Completion and Compliance.
“It aims to cut red tape and reduce turnaround times, enabling SMEs to scale operations more quickly and with greater regulatory clarity,” he said.
Najwan acknowledged that while local SMEs are ready to increase production to reduce reliance on imports, several barriers remain, including capital constraints, skill shortages, regulatory challenges, and supply chain limitations.
One such effort to address this is the Dana Usahawan Madani Selangor, which provides up to RM30,000 in capital to small businesses for equipment and operational upgrades across all sectors.
Looking ahead, he said Selangor is also boosting its infrastructure like the Selangor Halal Hub and Selangor Bio Bay, designed to give SMEs access to shared facilities, logistics, and utilities, while opening more doors to international markets through platforms such as the Selangor International Business Summit.
