CYBERJAYA, May 29 — The Selangor government offers various aid and support initiatives to local small and medium enterprises (SMEs) to boost their capabilities and competitiveness amid modern economic challenges, said state executive councillor for investment, trade and mobility Ng Sze Han.
He also rubbished some quarters’ claims that the inflow of quality investments to the state would sideline local businesses.
He said the key to local SMEs’ longevity is their ability to upgrade their technology and skills according to current market demand, as most large-scale investment projects need supplementary supply chain services, including in the legal, financial and consultation fields.
Ng explained that the state administration is committed to helping SMEs add value to their businesses, citing Selangor’s success in producing automotive components where industry expertise can be expanded to higher-value sectors like aerospace component manufacturing.
“What we need to do is facilitate the transition, that is, to gradually upgrade auto parts manufacturers into aircraft parts manufacturers. In fact, there are already successful examples in this regard. Some companies, through training and the introduction of more sophisticated equipment, have been able to participate in aerospace parts manufacturing; these are real-world examples,” he added.
“Undeniably, some companies are difficult to develop, including some factories without permits and licenses, which are inherently difficult to sustain in the long run.
“The state government has launched a whitelisting programme to assist relevant businesses in legalising their operations. If they are willing to change, they have the opportunity to enter new markets and continue to develop.”
Subsidies, discounts alone insufficient for long-term growth
Ng pointed out that although the state government provides subsidies or fee cuts, actual help is limited
“Even a 50 per cent reduction in license fees may not necessarily enable businesses to go further,” he said, adding that he believes the key is not just financial subsidies, but helping businesses improve their capabilities and align with modern market demands.
He also said the state government’s integrated support isn’t focused on SMEs, but includes micro-entrepreneurs including in the cleaning services and catering sectors, to ensure the group isn’t left behind as new industries develop.
“Take Chery, which has settled in the Hulu Selangor Beringin Hi-Tech Auto Valley, as an example — we also helped find local catering or (food service providers), and then facilitated cooperation between the two parties to ensure local residents could directly benefit from the development,” Ng explained.
