The SME Association of Malaysia fully supports MP Lee Chean Chung’s proposal to establish a ministry dedicated exclusively to Micro, Small and Medium Enterprises (MSMEs). As the backbone of the national economy, contributing close to 40% of Malaysia’s GDP, MSMEs require focused leadership and streamlined policy execution rather than scattered programmes and unclear governance structures.
Despite their importance, MSMEs continue to be affected by fragmented policy oversight across multiple ministries including MITI, MOHR, MATRADE, MDEC, MOF, BSN and the Ministry of Digital. This dispersed structure forces entrepreneurs to deal with overlapping guidelines, multiple approval channels and unnecessary administrative hurdles which consume valuable time that should instead support business expansion, digital transformation and export growth. The pandemic highlighted the severity of this fragmentation, as many businesses struggled to identify the right agency to seek help from during critical moments.
The creation of a dedicated MSME Ministry would break down these long standing institutional barriers. It would consolidate policymaking, centralise support services, reduce bureaucracy and ensure that grants, incentives and development programmes are delivered with greater clarity, speed and consistency. A single command centre overseeing the MSME landscape would enable Malaysia to shift from slow coordination to rapid, results-driven implementation.
Equally important is the voice of industry. A central ministry would provide a direct, continuous and structured platform for engagement with business bodies, especially national organisations such as the SME Association of Malaysia. This approach ensures that policies reflect real operational challenges instead of theoretical assumptions, leading to better policy impact, increased competitiveness and a more resilient business environment must remain as the implementation engine while being strengthened and aligned under the new ministry. Its expertise, networks and programmes should be enhanced for smooth continuity, not replaced or dismantled.
The SME Association of Malaysia stands ready to engage, advise and support the development of this new ministry if the government moves forward. This reform is not only timely but also essential for Malaysia’s post-pandemic economic recovery and long-term competitiveness.
