SME Association of South Johor founding president Teh Kee Sin said these collaborations can create mutually beneficial opportunities and help Malaysian SMEs overcome limitations such as market access, financial support, knowledge and technology.
“Partnerships will allow SMEs access to a larger business environment, not only for sourcing but also for selling at larger volumes,” he told FMT.
“If we don’t collaborate with foreign businesses, particularly investors from initiatives like the BRI, they will eventually find other partners – and we risk being left out entirely.
“We have to collaborate, innovate and adapt. Otherwise, the chance for growth may slip away.”
Teh was reacting to a recent call by the Malaysia Guangdong Chamber of Commerce for local companies to join forces with Chinese firms under the BRI.
The BRI is a global development strategy initiated by China in 2013 aimed at enhancing regional connectivity by building infrastructure and broadening trade links between Asia, Africa and Europe.
BRI projects in Malaysia include the RM50.3 billion East Coast Rail Link, a 665km railway connecting Kota Bharu, Kelantan to Gombak, Selangor. It is expected to cut travel time between the two endpoints from seven hours to four.
Malaysia can’t close borders to China
China has been Malaysia’s largest trading partner for 15 consecutive years. In 2023, Malaysia’s trade with China stood at RM450.84 billion, with imports accounting for RM258.63 billion.
Small and Medium Enterprises Association (Samenta) president William Ng said Malaysian SMEs cannot avoid trading with Chinese firms given their economic might.
Instead, he said, SMEs should consider entering supply chain partnerships and joining forces with Chinese firms to tap into a third market.
“As an open economy, there is no reason for Malaysia to close our borders to Chinese goods and businesses, but we must not allow unfair price distortion,” he said.
Ng also called for Chinese goods and businesses to be subjected to the same rigorous rules we place on local products and businesses.
“Malaysian businesses are not afraid to compete or collaborate with China provided that we do so on an equal footing.”