SHAH ALAM, May 20 — Selangor must accelerate its adaptation to shifting global economic demands and strengthen the role of small and medium enterprises (SMEs) to remain competitive amid growing international uncertainties.
Invest Selangor Bhd chief executive officer Dato' Hasan Azhari Idris said geopolitical tensions, supply chain disruptions, technological changes, and increasing regional competition require Selangor to strengthen domestic resilience.
He emphasised the importance of empowering SMEs and mid-tier companies (MTCs), given their significant contribution to the national and state economy.
"SMEs remain the backbone of Malaysia’s economy, accounting for more than 97 per cent of total business establishments nationwide.
“They contribute close to 38 per cent of the country’s gross domestic product (GDP) and provide over 48 per cent of employment opportunities," he said during the Invest Selangor Update Series: Insights into the Latest Opportunities for SMEs & MTCs programme today.
Hasan added that, despite making up only about 0.8 per cent of registered companies, MTCs contribute an estimated 36 per cent to the national GDP and employ around 16 per cent of the workforce.
“In Selangor specifically, the strong concentration of SMEs and MTCs plays a critical role in strengthening the state’s industrial ecosystem, supporting supply chain resilience, driving innovation capacity, and contributing significantly towards overall socio-economic development,” he said.
As such, the state must continue transitioning towards higher-value industries, including advanced manufacturing, digital economy, green technology, aerospace, life sciences, and electrical and electronics (E&E).
"Local companies must be capable of scaling up, innovating and integrating into regional and global value chains to remain competitive.
"The state can no longer depend solely on traditional low-end industrial activities, but instead must move towards knowledge-intensive and innovation-driven sectors capable of generating better jobs, stronger wages, higher productivity, and wider economic spillover effects,” Hasan said.
He noted that the upcoming Second Selangor Plan (RS-2) will place stronger emphasis on high-value industries, innovation, sustainability, talent development, digital transformation, and inclusive economic participation.
"This plan will align closely with the 13th Malaysia Plan and the National Industrial Master Plan 2030,” Hasan said.
Today’s programme involved a strategic collaboration between Invest Selangor, the Entrepreneur and Cooperatives Development Ministry, Khazanah Nasional Bhd, and Bursa Malaysia to support SMEs and MTCs through financing, governance support, capacity building, and business expansion initiatives.
