KUALA LUMPUR, March 18 — Targeted measures such as temporary financial relief, facilitation of access to working capital, and cost-mitigation initiatives will be vital in supporting businesses, particularly micro, small and medium enterprises (MSMEs), if the ongoing geopolitical conflict worsens.
Malaysian Employers Federation (MEF) president Datuk Syed Hussain Syed Husman, while acknowledging the government’s cautious approach, called for preparedness and flexibility in policy response should the situation in West Asia deteriorate.
“At this stage, a broad-based stimulus may not be immediately necessary. However, the government must remain ready to act swiftly if conditions worsen,” he said in a statement today.
Hussain said the situation reinforces the need for businesses to accelerate productivity enhancements, diversify supply chains, and adopt technology to mitigate future disruptions.
Policy support in these areas, he said, will be essential to ensure sustainable business continuity.
“It is imperative for the government to adopt a proactive and forward-looking approach. We cannot afford to take a ‘wait-and-see’ stance and only begin formulating financial assistance packages after the full impact is seen.
“By then, the delay could prove detrimental, especially for businesses operating on thin margins. The government must begin working now on ready-made financing mechanisms and contingency support frameworks that can be deployed swiftly if conditions worsen."
He added that having pre-prepared solutions will ensure that response measures can be activated immediately at the action stage, helping businesses weather the crisis more effectively and preventing avoidable closures or disruptions.
“Additionally, MEF will continue to closely monitor developments and engage with stakeholders to ensure that employers’ concerns are addressed in a timely and effective manner."
