Malaysia Must Continue Strengthening Competitiveness To Benefit From China Plus One

KUALA LUMPUR, Aug 18 (Bernama) -- Malaysia must continue strengthening its competitiveness to benefit from the China Plus One strategy, said Malaysia's Deputy Economy Minister Mohd Shahar Abdullah. 

He said this is because the benefits of the ongoing restructuring of global supply chains are not automatic.

“The China Plus One strategy is not an automatic prize for ASEAN. Malaysia must earn its position through quality, reliability, speed, talent and trust,” he said in his keynote address at the SME Forum 2026 here today.

Mohd Shahar said that while the ongoing reconfiguration of global supply chains poses risks, it also creates opportunities for Malaysian micro, small and medium enterprises (MSMEs) to participate in global value chains.

He said Malaysian MSMEs seeking to supply multinational corporations must be able to meet technical standards, deliver consistently and on time, protect data and intellectual property, demonstrate sound corporate governance, and trace their environmental and social performance.

“These are not barriers designed to lock small businesses out. Increasingly, they are essential passports into higher-value global markets,” he said. 

Mohd Shahar noted that the national target is to more than double the share of medium-sized firms from 1.8 per cent to five per cent by 2030, while increasing the overall MSME contribution to more than 50 per cent of Malaysia’s gross domestic product (GDP).

“The aim is not for every small firm to become a global giant, but for every viable, hardworking firm to have a clear and well-funded pathway to become more capable, more connected and more valuable,” he said.

Mohd Shahar also said Malaysian MSMEs have never lacked courage, hustle and ingenuity, but need stronger links between policy and execution, financing and capability, as well as technology and productivity.

“Let us ensure that as Malaysia grows and attracts global investment, our MSMEs grow stronger and move deeper into the value chain,” he added.
-- BERNAMA