On 8th May 2019, IDEAS held a forum discussion on cost of doing business in Malaysia- Reducing Regulatory Burden on SME in Malaysia. The Secretary-General of the Ministry of Entrepreneurship Development, YBhg. Datuk Wan Suraya Wan Mohd Radzi, delivered a speech where she outlines plans by the Ministry in tackling the issues faced by small and medium enterprises (SMEs).
Next, IDEAS Director of Research, Laurence Todd, presented the findings of a survey conducted by IDEAS on the regulatory burdens faced by SMEs in Malaysia. The findings showed that the top 4 of most burdensome business regulation to SMEs are the company tax, worker’s visa and permit regulation, minimum wage regulation and company billboard regulation. The presentation focuses on the cost and the time taken by SMEs especially for micro and small SMEs to comply with these regulations. The respondent for the research is SMEs that that have their main office in the Klang Valley,
Following the presentation, the forum moved to a panel discussion moderated by IDEAS CEO, Ali Salman. Panellists include Dato’ Abdul Latif, Dep. Director General from Malaysia Productivity Corporation, Datuk Michael Kang, Chairman of Small & Medium Enterprise and SME Association, Dato’ Sri Dr Mohniandi, Group MD of Everest Integrated Logistics and IDEAS Director, Laurence Todd. During the discussion, the panellist agreed that more is needed to reduce the regulatory burden faced by SMEs.
The other point been discussed during the forum is the market access to SMEs. One of the speakers said the Malaysian government has been quiet proactive in solving the problem of market access through agencies and grants to help SMEs such as MATRADE and Market Development Grant (MDG). Grants have been awarded to SMEs to participate in international market but the value of the grants depend on sectors. These are some initiatives by the government to help SMEs to expand and growth their business.
Speaking at the forum discussion Laurence Todd, Director at IDEAS said that: “IDEAS will look at the challenges faced by medium enterprises because they face different compared to micro and small enterprises”