THE small and medium enterprises (SMEs) have been urged to step beyond their comfort zones and actively engage in global trade to drive Malaysia’s next phase of economic growth.
Chief Minister Chow Kon Yeow said Penang has long been recognised as one of Malaysia’s most dynamic economic hubs.
“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.
“Despite having more than one million SMEs nationwide, only about 18% participate in global trade. 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.
“Thus, a shift in mindset is needed from caution to calculated risk-taking, and from local focus to global ambition,” said Chow in his speech.
Chow was speaking at the Malaysia Entrepreneurs’ Development Association (PUMM) Penang State Liaison 20th Anniversary and Chinese New Year Appreciation Night 2026, held at the Iconic Marjorie Hotel in Bayan Lepas this evening.
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 added 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 also stressed that SMEs must accelerate the adoption of digitalisation, automation, and even artificial intelligence.
“These technologies are essential tools for scaling operations, improving efficiency, meeting international standards, and remaining competitive in global markets.
“In this context, I would like to call upon PUMM Penang to be at the forefront of this mindset shift.
“As a ‘Gen Z’ association, PUMM is well placed to empower businesses and nurture entrepreneurship by encouraging innovation, responsible risk-taking, and greater ambition among its members to enter regional and global markets,” said Chow.
According to him, the Penang government remains committed to fostering a business-friendly, innovation-driven ecosystem that empowers and nurtures entrepreneurship, strengthens domestic investment, and positions Penang as a key node in regional and global trade.
He also congratulated PUMM Penang State Liaison on its 20th anniversary.
“As we celebrate this milestone, let us look ahead with confidence and determination.
“With the right mindset, strategic adoption of technology, and strong collaboration between government and industry, I am confident that our SMEs and associations such as PUMM will play an even stronger role in shaping Malaysia’s economic future,” he said.
Story by Riadz Akmal
Pix and video by Siti Nuratikah Rahmat