MALAYSIAN SMEs must reposition human resources as a strategic driver of growth, not a cost centre, Deputy Prime Minister and Minister of Energy Transition and Water Transformation, Datuk Seri Fadillah Yusof, said at the official opening of the SME HR Conference 2025.
Addressing over 200 SME founders and HR leaders, Fadillah called the current economic landscape a turning point for small and medium enterprises to adopt modern, data-driven and people-focused HR practices aligned with business strategy.
“The challenges you face are national challenges. When SMEs struggle to attract or retain talent, or face administrative burdens, it affects Malaysia’s global competitiveness,” he said. “This is no longer a matter of internal operations. It’s a national priority.”
Highlighting findings from SME Corp Malaysia’s 2023 Annual Report, he noted that SMEs with structured HR strategies grew 2.5 times faster and scaled three times more efficiently.
He urged business owners to discard outdated perceptions of HR and adopt tools such as AI-driven recruitment, hybrid work models, and performance-linked pay, alongside upskilling grants and wellbeing programmes. “Investing in HR is not an expense—it is a direct investment in growth, resilience, and future competitiveness.”
Fadillah also pointed to trends shaping the workforce over the next five years, including skills-based hiring, ESG-linked HR policies, diversity and inclusion, and agile performance management.
“These are not future possibilities—they are current realities,” he warned. “Those who act now will thrive. Those who delay will be left behind.”
He added that while the government remains committed to supporting SMEs through policy and incentives, “real transformation must begin within each organisation.”
The two-day event, themed “HR, People & Business Strategy: Empowering Malaysian SMEs to Success,” is organised by IHR Consulting and the EMKAY Group. It includes practical workshops on retention strategies, digital HR tools, and workforce development programmes.
Fadillah concluded with a call to action for all participants: “Leave this conference with one collaborator and one HR experiment you will act on in the next 30 days. The future of your enterprise, and our nation, depends on it.” - Sept 8, 2025
