Soaring Energy Costs: Malaysian SMEs Call for Supply Chain Resilience
Malaysian SMEs are facing immense pressure from soaring energy costs. The SME Association of Malaysia urged the government to strengthen supply chain resilience and provide support such as fuel and electricity subsidies and tax incentives. A survey indicates 76% of SMEs are affected, with 45% expecting cash flow pressure in the next 3-6 months.
📋 Article Processing Timeline
- 📰 Published: May 6, 2026 at 15:50
- 🔍 Collected: May 6, 2026 at 16:01 (11 min after Published)
- 🤖 AI Analyzed: May 6, 2026 at 16:38 (36 min after Collected)
Central News Agency
(Central News Agency reporter Huang Ziqiang, Kuala Lumpur, 6th) The Middle East conflict has triggered an energy crisis, and Malaysian small and medium-sized enterprises (SMEs) are facing pressure from rising costs. The Malaysian Association pointed out that 76% of SMEs are significantly affected, and rising costs exacerbate operational risks. It is expected that within the next 3 to 6 months, 45% of enterprises will face more severe cash flow pressure, and the government is urged to strengthen supply chain resilience.
On February 28, the United States and Israel jointly bombed Iran, causing violent fluctuations in international oil prices. Although Malaysia is one of the oil-producing countries, it still needs to import a large amount of crude oil to meet its refining and energy needs. Prime Minister Anwar Ibrahim said that the current fuel supply can be maintained until the end of June, and the government is also promoting energy-saving measures to avoid falling into energy rationing difficulties.
The SME Association of Malaysia released its latest statement, saying that according to a survey in April, fuel and energy-related costs continue to rise, posing increasingly severe pressure on SMEs, with almost no industry immune; more than 80% of enterprises face double-digit cost increases, some of which have seen cost increases exceeding 20%.
The Association pointed out that rising energy costs drive up logistics and transportation expenses, and upstream suppliers simultaneously adjust prices, leading to increased operating-related costs; coupled with inflation suppressing consumer demand, profit margins across various industries continue to be squeezed. Enterprises are becoming more conservative in their operations, delaying investment plans, and exacerbating the risk of unstable cash flow.
The Association stated that related impacts may lead to an overall contraction of SMEs, causing a chain effect on the employment market and domestic consumption, gradually evolving into a core economic risk.
The Association believes that SMEs are the closest 'economic barometer' to the market. If corporate investment and operations remain active, it reflects the stability of the overall economy. Therefore, the confidence and performance of SMEs are also key indicators for assessing the economic situation and policy urgency.
The Association, through a press release, urged the government to propose more precise and timely response measures, including establishing a fuel cost buffer mechanism for SMEs, providing short-term electricity tariff stabilization solutions for affected industries; and, within the next 3 to 6 months, promoting phased deferment or adjustment of sales and service tax, to alleviate enterprises' working capital pressure and strengthen cross-departmental coordination to enhance supply chain resilience.
The Association emphasized that at this stage, national-level coordinated cooperation is needed to stabilize the corporate operating environment and employment market, and to introduce timely, pragmatic, and targeted measures to avoid more severe economic impacts. (Editor: Zhang Zhixuan) 1150506
Choose to stand with facts. Every sponsorship you provide is the power to protect press freedom.
Download the Central News Agency 'First-hand News' APP to keep up with the latest news in real time.
Without authorization, the text, images, and audio-visual content on this website may not be reproduced, publicly broadcast, or publicly transmitted and utilized.
(Central News Agency reporter Huang Ziqiang, Kuala Lumpur, 6th) The Middle East conflict has triggered an energy crisis, and Malaysian small and medium-sized enterprises (SMEs) are facing pressure from rising costs. The Malaysian Association pointed out that 76% of SMEs are significantly affected, and rising costs exacerbate operational risks. It is expected that within the next 3 to 6 months, 45% of enterprises will face more severe cash flow pressure, and the government is urged to strengthen supply chain resilience.
On February 28, the United States and Israel jointly bombed Iran, causing violent fluctuations in international oil prices. Although Malaysia is one of the oil-producing countries, it still needs to import a large amount of crude oil to meet its refining and energy needs. Prime Minister Anwar Ibrahim said that the current fuel supply can be maintained until the end of June, and the government is also promoting energy-saving measures to avoid falling into energy rationing difficulties.
The SME Association of Malaysia released its latest statement, saying that according to a survey in April, fuel and energy-related costs continue to rise, posing increasingly severe pressure on SMEs, with almost no industry immune; more than 80% of enterprises face double-digit cost increases, some of which have seen cost increases exceeding 20%.
The Association pointed out that rising energy costs drive up logistics and transportation expenses, and upstream suppliers simultaneously adjust prices, leading to increased operating-related costs; coupled with inflation suppressing consumer demand, profit margins across various industries continue to be squeezed. Enterprises are becoming more conservative in their operations, delaying investment plans, and exacerbating the risk of unstable cash flow.
The Association stated that related impacts may lead to an overall contraction of SMEs, causing a chain effect on the employment market and domestic consumption, gradually evolving into a core economic risk.
The Association believes that SMEs are the closest 'economic barometer' to the market. If corporate investment and operations remain active, it reflects the stability of the overall economy. Therefore, the confidence and performance of SMEs are also key indicators for assessing the economic situation and policy urgency.
The Association, through a press release, urged the government to propose more precise and timely response measures, including establishing a fuel cost buffer mechanism for SMEs, providing short-term electricity tariff stabilization solutions for affected industries; and, within the next 3 to 6 months, promoting phased deferment or adjustment of sales and service tax, to alleviate enterprises' working capital pressure and strengthen cross-departmental coordination to enhance supply chain resilience.
The Association emphasized that at this stage, national-level coordinated cooperation is needed to stabilize the corporate operating environment and employment market, and to introduce timely, pragmatic, and targeted measures to avoid more severe economic impacts. (Editor: Zhang Zhixuan) 1150506
Choose to stand with facts. Every sponsorship you provide is the power to protect press freedom.
Download the Central News Agency 'First-hand News' APP to keep up with the latest news in real time.
Without authorization, the text, images, and audio-visual content on this website may not be reproduced, publicly broadcast, or publicly transmitted and utilized.