Govt action averted mass closure of SMEs, says Samenta

Samenta president William Ng said SMEs initially feared the worst from the Iran war, including mass closure.

PETALING JAYA: Swift government intervention helped prevent a major crisis among small and medium-sized enterprises (SMEs) amid the economic fallout from the Iran war, says the Small and Medium Enterprises Association of Malaysia (Samenta).

Samenta president William Ng said SMEs initially feared the worst for the sector, especially after crude oil prices surged past US$100 a barrel.

“We anticipated runaway inflation and a supply crisis that would see a mass closure among SMEs,” he said in a statement.

However, Ng said the feared closures and retrenchments did not materialise, with Malaysia recording 5.4% GDP growth in the first quarter of the year despite crude oil prices rising 27% this year to an average of US$93 per barrel.

He praised the government’s decision to maintain petrol subsidies despite the higher costs while enforcing anti-profiteering measures and providing financial assistance to help businesses weather the crisis.

“These decisive actions have put Malaysia in a distinct sweet spot within Asean. Not only is Malaysia among the least impacted, we have benefited strongly as a safe haven in the midst of this global uncertainty.”

He cited the RM5 billion SME Stability Relief Facility and RM10 billion in credit guarantees through Credit Guarantee Corporation Malaysia Bhd and Syarikat Jaminan Pembiayaan Perniagaan as key measures that helped businesses manage the crisis.

Ng said Samenta would continue supporting SMEs by rolling out Asean’s first Circular Economy Certification to help enterprises reduce their dependence on raw materials and energy, along with a nationwide AI roadshow aimed at strengthening business resilience.