PENANG Chief Minister Chow Kon Yeow has urged small and medium enterprises (SMEs) to step away from their comfort zones by trying to compete on the global platform.
This drives Malaysia’s next phase of economic growth, SMEs that are globally connected and diversified, said Chow.
The state is recognised as one of Malaysia’s most dynamic economic hubs, but the private sector can do more for itself by expanding beyond the state's shores, he said.
"Our strength has always come from a resilient private sector, particularly our SMEs, which form the backbone of our economy. SMEs account for more than 97% of all businesses in Malaysia and play a critical role in driving jobs, innovation, and long-term growth," Chow acknowledged.
Despite having more than a million SMEs nationwide, only about 18% participate in global trade, he revealed.
"This is a reality we must confront honestly. If Malaysia is serious about moving up the value chain, SMEs cannot remain overly comfortable in domestic markets. A shift in mindset is needed from caution to calculated risk-taking, and from local focus to global ambition,” said Chow.
He was speaking at the Malaysia Entrepreneurs’ Development Association (PUMM) Penang State Liaison 20th Anniversary and Chinese New Year appreciation night 2026 at the Iconic Marjorie Hotel.
Also present were Consul General of Japan in Penang, Shinya Machida, PUMM National president Datuk Dr Teh Tai Yong, PUMM Penang State Liaison chairlady Ellva Tan and PUMM Penang State Liaison adviser Datuk Dr Carl KK Tan.
Chow said that both the Federal and state governments have put in place multiple industrial roadmaps and master plans.
“This includes the New Industrial Master Plan 2030 (NIMP 2030), the National Semiconductor Strategy (NSS), the 13th Malaysia Plan, and state-level strategies aligned with business-friendly fiscal policies. These frameworks support automation, digital adoption, productivity gains, and market expansion. Their impact, however, depends on how businesses respond,” he said.
Chow stressed that SMEs must accelerate the adoption of digitalisation, automation, and Artificial Intelligence. - February 7, 2026.
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