SMEs in Malaysia

The govt should lend support to SMEs in Malaysia as they provide 70 percent of employment to workers in our country.Compared to 5 percent job opportunities created by GLCs,maybe 15 per cent by MNCs and 10 per cent by the civil service,this shows the. SMEs contribute a lot to GDP and national productivity. But SMEs face considerable challenges in uncertain economic times due to inflationary pressure like hike in SST,electricity tariff,local council rate hikes,tax on low value e commerce goods,withdrawal of fuel subsidy,implementation of minimum wage hike,implementation of compulsory EPF contribution for migrant workers,e invoicing and so on.If economic strategies doesnt support SMEs,their collapse will cause more unemployment as they face threats of cheaper foreign imports due to dumping of goods.A dampening of domestic consumption at a time of lower exports due to tarrifs and rise in protectionism could derail economic growth and looking at Japans economic issues of stagflation,increase price of staples like rice and lower exports of hi tech manufactured goods,it serves as an example of how important fiscal and economic policies are to the GDP of a nation. Bailing out unprofitable GLCs is a political expediency as its part of the political patronage system of governance but to neglect the role of SMEs is risking political stability.