AIR Putih assemblyman Lim Guan Eng has called for a dual-track approach to address challenges faced by local small and medium enterprises (SMEs), saying that enforcement against the abuse of social visit passes alone is insufficient.
Lim said the Federal Government’s move to form a special task force to tackle the misuse of social visit passes was a step in the right direction.
The task force set up by Finance Ministry comprises members from the Investment, Trade and Industry Ministry, Home Ministry, Domestic Trade and Cost of Living Ministry, Entrepreneur and Cooperatives Development Ministry, and the Housing and Local Government Ministry.
“We have heard many complaints from local industry players about individuals using social visit passes to operate businesses illegally,” he said.
However, Lim stressed that such visa abuse represents only a small part of a much larger problem affecting local businesses.
“The bigger issue is foreign companies coming into Malaysia, setting up companies, dumping goods and slashing prices, sometimes even selling below cost,” he said, adding that this has placed severe pressure on local SMEs, many of which are now struggling to survive.
Lim said the impact on SMEs has been significant, with many facing a shortage of jobs and business opportunities.
“When there is no business, there is no income and no tax contribution,” he said.
He highlighted the importance of SMEs to the national economy, noting that they play a major role in economic growth and employment.
“If SMEs collapse, the impact on the economy will be very serious, especially as small businesses are major employers,” he said.
Lim said while action against visa misuse should continue, the government must not overlook the structural problem of unfair competition caused by foreign firms engaging in aggressive price-cutting.
“This issue must be addressed through a dual approach, not by focusing on one small problem while ignoring the bigger one,” he said.
As a solution, Lim proposed that companies operating in Malaysia, whether local or foreign-owned, should be required to source at least 50% of their goods or materials locally.
“This will give local SMEs some breathing space and allow them to continue doing business,” he said, adding that without such measures, many SMEs would be left with no business at all, regardless of operating costs.
Lim acknowledged that certain raw materials may not be available locally, but said companies should not completely bypass local suppliers when equivalent products are available.
“There is no justification for refusing to buy from local SMEs when the products are available here,” he said.
He stressed that the issue was not about targeting any specific country, but about protecting local industries.
“This is about safeguarding our local manufacturers and local businesses,” he said.
Lim added that the challenges faced by SMEs cut across sectors, including the food and beverage industry, noting that restaurants and small traders are also part of the SME ecosystem.
“If SMEs fail, workers lose their jobs, businesses shut down, and that will weaken the economy,” he said.
Story by Edmund Lee
Pix by Law Suun Ting