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KUALA LUMPUR: The Malaysia External Trade Development Corporation (Matrade) said micro-, small- and medium-scale enterprises (MSMEs) need more development programmes that would allow them to become globally competitive.
Its chief executive officer, Datuk Mohd Mustafa Abdul Aziz, said the requirement to compete in international markets has changed significantly over the past few years, where buyers no longer base their decisions solely on price.
"Policymakers, stakeholders, and consumers now have different expectations and are more concerned about the significance of adopting sustainability measures," he said in a statement today.
Mustafa said exporters must invest in developing sustainable export strategies that promote and adopt environmental, social and governance principles in their production processes and global supply chains to meet changing market requirements.
"Business governance and operations, including community care, must be centred on socioeconomic trends. Our MSMEs need the relevant certifications, standards, labelling and global endorsement to compete on a global scale and in high-value markets."
He said to achieve this, MSMEs should keep up with effective facilitation while pragmatically modifying some development programmes to fully realise their global potential in the current economic climate.
"Our MSMEs must be prepared for the digital age, which goes beyond simply having websites, including exposing them to cutting-edge technology, like the metaverse."
Highlighting e-commerce marketing as another key area, Mustafa said Matrade has introduced a programme called the eTrade Programme (now eTrade 2.0) to expedite the learning and adoption of e-commerce marketing as a tool to enter the export market for local MSMEs.
"We must develop new capabilities to further diversify our strengths.
"With regard to international trade, Matrade urges all relevant parties to work with us to develop new areas of strength, such as the services sector and environmentally friendly and highly innovative sectors."
He said Matrade has forged high-value partnerships with industry players across various segments, such as Google, DHL Express, CIMB, Malaysian Green Technology and Climate Change Corporation, Sirim and Bank Islam, among others.
As Malaysia endeavours to strengthen existing partnerships and forge new ones with nations in the region, he said, the country's commitment to free trade and open economies will bolster its capabilities to compete in the international market and ensure economic prosperity for years to come.
Mustafa said the presence of Malaysian businesses in the global supply chain contributed to its stability and the country could undoubtedly continue to solidify its position as a strong and reliable trading nation.
"Malaysia can benefit from opportunities brought about by greater globalisation and regional economic integration through the Regional Comprehensive Economic Partnership and Comprehensive and Progressive Agreement for Trans-Pacific Partnership by using its strategic location.
"Additionally, globalisation has immense potential for Malaysia, offering wider access to markets, investment and resources to facilitate Malaysia's economic growth."
As Malaysia continued to pursue greater international trade, he said there were many opportunities that could be leveraged over the next three to five years.
He said Malaysia was expected to see a surge in demand for its products and services, provided the readiness of local companies was addressed and that they were pragmatic in the market access approach.
Mustafa added that Malaysia's move to position itself at the forefront of the digital economy by leveraging its expertise in technology, communications infrastructure and local knowledge will be a key catalyst to the country's export growth.
"Most initiatives in Malaysia are focused on providing better access to resources, such as finance, technology, skills and talent, and these efforts help improve Malaysia's infrastructure and connectivity to the global economy.
"We must continue to strengthen our presence in international trade through the World Trade Organisation and other regional organisations, as well as encourage the use of free-trade agreements as an instrument to boost market access."
Mustafa said Malaysia must also be ready for changes in the nature of international trade, such as growing tariffs, protectionism and production costs.
"We must work concertedly to make sure that its trade laws are adaptable to these developments and that Malaysia is in a good position to take advantage of emerging opportunities in global trade, such as the digitalisation of processes, blockchain technology and e-commerce platforms.
"Finally, our companies must continue to invest in their human capital and foster innovation through education and training. Investments in upskilling its workforce will help Malaysian companies remain competitive by developing innovative skills and technologies to strengthen its position in both the domestic and international markets."
Malaysia must also keep its commitment to sustainable development, which is essential for the country's long-term development and success in the rapidly evolving global trade environment, he said.
Source: https://www.nst.com.my/news/nation/2022/12/865419/msmes-need-more-development-programmes-become-globally-competitive