The government will convene a meeting with representatives from small and medium-sized enterprises (SMEs) tomorrow to assess the extent to which the Middle East conflict is affecting local businesses.
Economy minister Akmal Nasrullah Nasir stated that the meeting aims to collect sector-specific feedback to help alleviate the challenges facing SMEs and ensure continued economic stability. The findings from this session will be presented to the National Economic Action Council on Tuesday, before being tabled at the Cabinet meeting the following day.
Monitoring economic risks and projections
Akmal Nasrullah, who is also the Johor Bahru MP, noted that all discussions regarding the impact of the conflict are being managed by the council. The body has been active since the onset of the hostilities and currently meets on a weekly basis to monitor the situation.
Speaking to reporters at an Aidilfitri open house in his constituency today, he mentioned that while Putrajaya is maintaining its gross domestic product (GDP) growth target of 4% to 4.5% for the year, the ministry is closely tracking risks. These include geopolitical tensions and global supply chain disruptions that could influence the current projections.
The minister stressed that sustaining economic momentum will rely on steady domestic spending, robust private investment, and the timely execution of government development projects.
Calls for business support and relief
The meeting follows a recent appeal from SME Association of Malaysia president Chin Chee Seong, who urged the government and relevant agencies to implement a targeted six-month loan moratorium. This proposed repayment deferment is intended to assist micro, small, and medium enterprises (MSMEs) struggling with the fallout of the war.
Furthermore, the Federation of Malaysian Manufacturing has warned that Malaysia’s GDP growth could moderate to between 3.8% and 4.2% if the conflict escalates further. The geopolitical situation remains volatile following large-scale airstrikes launched by the US and Israel against Iran on 28 February, which prompted retaliatory strikes on US bases and allied positions.
The subsequent closure of the Strait of Hormuz by Iran has choked a vital energy passage, leading to a spike in oil and gas prices. These developments have triggered widespread inflationary fears across the globe, prompting the Malaysian government to take proactive steps in engaging with the local business community.
