Take part in business associations, SMEs told

KUALA LUMPUR – Small and medium enterprises (SMEs) should take an active part in business associations so they can better communicate with the government about issues on the ground.

Federation of Malaysian Manufacturers (FMM) council member Ter Leong Leng said that in turn, the government should liaise with existing business associations rather than individual enterprises in order to gauge general feedback.

“FMM believes in the Malaysia Incorporated concept, where government and industry work together as partners. In reality, we are partners, since our taxes go to the government.

“We also sit on many government agency boards, which allows us to make suggestions to policymakers. SMEs should join these associations,” he said.

Ter was a panellist at the Institute for Democracy and Economic Affairs (Ideas) Webinar entitled Post-Covid-19 Recovery: Building SME Resilience.

He said that associations like FMM conduct various surveys to gauge economic well-being, and SME participation would give associations a better understanding of “the reality on the ground”.

Citing the example of the enforcement under the Workers’ Minimum Standards of Housing and Amenities Act, Ter said it created a chaotic situation in the manufacturing industry.

“We need to have many discussions with the authorities, and the industry needs more time.

“The sudden policy of freezing the hiring of foreign workers to encourage local employment was a big issue. This is the kind of thing we must continuously highlight to the government,” he said.

He also said since many Covid-19 clusters involve the manufacturing sector, close cooperation is needed between industry and government to flatten the curve without jeopardising the nation’s economy and health.

The webinar was moderated by Ideas chief executive Tricia Yeoh, with Ideas research director Laurance Todd as presenter. Opening remarks were by Charles Hay.

Other panellists were Nottingham Business School research director Dr Mohan V. Avvari, Malaysian Hotels Association chief executive Yap Lip Seng, and SME Corp Malaysian economics and policy division manager Alicia Adam. – The Vibes, January 27, 2021