GLOBAL TENSIONS COULD UNLOCK NEW DOORS FOR LOCAL MSMES, SAYS PERDASAMA

By Thivyamalini Ramalu

PUTRAJAYA, March 8 (Bernama) -- The Malay Traders and Entrepreneurs Association of Malaysia (Perdasama) believes that global geopolitical tensions, including the standoff between the United States and Iran, could open new doors for local micro, small and medium enterprises (MSMEs) in strategic sectors like renewable energy, logistics and agro-food.

Its president, Mohd Azamanizam Baharon, noted that uncertainty in the Middle East, particularly along the critical Strait of Hormuz shipping route, is set to disrupt global trade, as nearly 20 per cent of the world's oil and gas supply traverses it daily.

"In the Malaysian context, these developments are putting pressure on MSMEs through rising operating costs, higher raw material and logistics expenses, and increased cost-of-living burdens, especially for businesses reliant on imported raw materials, international transport, and energy.

"Yet Perdasama believes every crisis also creates room for new opportunities in strategic entrepreneurial sectors that should be explored by local entrepreneurs," he told Bernama recently.

Mohd Azamanizam noted that the hike in global oil and gas prices amid geopolitical uncertainty reflects the urgent need to strengthen new energy industries and local renewable energy sources.

“MSME entrepreneurs should look at the vast opportunities in solar energy, energy storage, energy efficiency technologies and alternative energy solutions.

“Demand for these technologies is expected to rise as countries and industries strive to reduce dependence on fossil fuels, which are exposed to geopolitical risks,” he said.

The global crisis also highlights the critical need for supply chain resilience, he said, urging more local entrepreneurs to participate in logistics, warehousing, supply chain management, transportation and digital logistics technologies to enhance Malaysia's trade and supply capabilities.

Azamanizam added that the agro-food and modern agriculture sectors offer strong growth prospects amid global uncertainty.

He emphasised that developing high-technology agriculture would not only bolster national food security but also position Malaysia as a potential food exporter to crisis-affected countries.

In this regard, Perdasama has called for stronger national economic policies to support the development of new energy, domestic logistics, and high-technology agro-food industries, better equipping MSMEs to navigate global economic uncertainties.

"Perdasama believes that modern agriculture, fisheries, agro-food and agro-based industries can no longer be viewed as second-tier economic sectors.

“In reality, many developed countries such as the Netherlands, Australia and New Zealand have proven that high-technology agriculture can become a major contributor to the national economy and global exports," he said.

He added that global crises demand strategic thinking from all parties to build a more resilient economy, and with proper planning, local entrepreneurs have the potential to emerge as key players in strategic sectors.

On Feb 28, the United States and Israel launched attacks on Iran, including in Tehran, causing damage and casualties among civilians.

Iran later retaliated with attacks on Israeli territory and US military bases across the Middle East.

-- BERNAMA