Malaysia’s micro-small-and medium-sized enterprises (MSMEs) are often praised as the backbone of the economy - yet for decades, they have been treated more like a secondary economy.
Despite contributing RM652 billion, nearly 40% of Malaysia’s GDP, and employing half of the national workforce, MSMEs continue to operate in a maze of overlapping ministries, scattered agencies and fragmented policies that dilute their impact and stunt their growth.
Now, Calls For Long-Overdue Reform Are Getting Louder
Petaling Jaya MP Lee Chean Chung has urged Prime Minister Dato' Seri Anwar Ibrahim to seize the opportunity of the upcoming Cabinet reshuffle to establish a dedicated MSME ministry: a structural upgrade he believes is necessary to correct years of historical neglect. Lee argued that MSME operators often feel overlooked by policymakers, not because the government lacks initiatives, but because these initiatives are scattered and poorly coordinated across four different ministries.
He points out that MSME-related matters are currently handled by the ministries of entrepreneur development and cooperatives; investment, trade and industry; rural and regional development; and domestic trade and cost of living. This diffusion, he says, creates a policymaking complex that leaves business owners confused about where to turn for help.
Lee said by having a dedicated ministry can the historical neglect of MSMEs be systematically rectified, adding that such a move would finally give millions of ordinary enterprises a voice in the Cabinet.
His call has gained strong support from the SME community. SME Association of Malaysia president Dr Chin Chee Seong said the idea is “long overdue,” describing MSMEs’ current operating environment as a “confusing maze” of agencies and overlapping programmes. A dedicated ministry, he emphasised, would provide a clear chain of command to respond swiftly to issues ranging from digitalisation to financing to global competition.
Even economists echo the sentiment. Barjoyai Bardai suggested that the minister should be someone with real business experience, perhaps appointed as a senator - someone who understands the strategies needed to make MSMEs thrive. He warned that Malaysia’s tendency to favour large corporations has widened the wealth gap, noting that the richest 1% holds over 40% of the nation’s wealth while more than a million MSMEs collectively own less than 10%.
But Not Everyone Agrees That Creating A New Ministry Is The Answer
Datuk William Ng, president of the Small and Medium Enterprises Association Malaysia (Samenta), cautioned that a new ministry could worsen bureaucracy rather than solve it. The MSME ecosystem, he argues, is already burdened with redundant policies and administrative hoops. The real need, according to Ng, is not a new ministry - but effective ministers and an efficient civil service. He lamented that if a weak leader is in charge of a new MSME ministry, you will still get nowhere.
The debate ultimately boils down to a crucial question: Do MSMEs need a new ministry or a new mindset in government?
For supporters, a dedicated ministry represents recognition, coordination and long-overdue prioritisation. For critics, it risks becoming yet another layer of red tape in an already choking system.
Yet one thing is unmistakable: MSMEs deserve more than piecemeal attention. They deserve coherent policies, strong advocates and a meaningful seat at the decision-making table. Whether through a new ministry or a reformed governance structure, the government must prove it truly values the entrepreneurs who keep Malaysia’s economic engine running smoothly.
As the nation braces for Anwar’s Cabinet reshuffle, the MSME community waits for an answer: Will this be the moment they finally get the dedicated focus they have earned or will the cycle of fragmentation continue?
By: Kpost
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