Asian countries to now become the “new China. Therefore, we must support small and medium-sized businesses (SMEs) in Malaysia as the global supply chain shifts.
It is therefore ready to develop into both a sizable consumer base and global production. He predicted that 10 Asian countries will have a combined population of over 678 million citizens and a GDP of over US$3.7 trillion (RM17.4 trillion) in 2022.
Asean is the fifth-largest economy in the world, with 350 million middle-class residents and a US$300 billion (RM1.41 trillion) disposable income.
The minister during his address at the exchange event between Malaysian Industrial Development Finance Bhd (MIDF) and Agensi Kaunseling dan Pengurusan Kredit (AKPK) to give financial support through MIDF’s Second Chance Financing plan (2CF).
Tengku Zafrul stated that in 2022, when global FDI declined by 12%, FDI into Asia increased by 5%, and the region’s proportion of global FDI increased to an all-time high of 17%.
“In short, the survival of our SMEs in local supply chains could help them capitalise not only on Asean’s growing middle class but also on shifting supply chains to and FDI flowing into this region.”
“This regional economic integration is also a goal that is also espoused by the Madani Economy framework,” the minister stated.
Tengku Zafrul went on to say that the government realised the considerable influence of external variables on enterprises and that even well-managed companies could face setbacks due to circumstances beyond their control, particularly in the ever-changing economic landscape.
“Sudden shifts in market conditions, unforeseen disruptions, or internal struggles can push promising companies to the brink of failure and have far-reaching consequences for a production’s entire supply chain, encompassing suppliers, customers, employees and possibly the surrounding communities,” he wrote.
According to Tengku Zafrul, giving these enterprises a financial lifeline that helps their business recovery is critical in ensuring that supply networks remain intact, which is critical to the nation’s socioeconomic progress.
“To that end, the MIDF-AKPK collaboration is an important, holistic recovery ecosystem in terms of supporting troubled companies, particularly the SMEs,” he said.
