KUALA LUMPUR: Malaysia's economic strength must rest on tens of thousands of small and medium enterprises (SMEs), rather than a handful of corporate giants.
Prime Minister Datuk Seri Anwar Ibrahim said SMEs must be empowered to innovate, build industrial capabilities and penetrate international markets to drive economic growth.
"Our strength does not lie in a few dozen giant companies, although they are important and we work with them, but in tens of thousands of SMEs," he said at the 2026 Industry Excellence Awards here today.
Present were Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani and Deputy Minister Sim Tze Tzin.
Anwar said a significant gap remained in SMEs' capabilities and contributions, which must be addressed if Malaysia were to become a more competitive industrial economy.
He said the 2027 Budget placed particular emphasis on strengthening SMEs through financing facilities and targeted incentives, taking into account proposals and feedback from industry players.
He said industrial progress must also create greater economic opportunities for ordinary Malaysians, warning against celebrating strong growth and export figures while inequality widened.
"We cannot talk about driving growth, high exports and impressive figures while inequality widens.
"The poor cannot be marginalised and left neglected, whether in rural areas in Kelantan or in Kapit, Sarawak. That cannot happen," he added.
Anwar said Malaysia must pursue technological advancement and industrial modernisation while remaining grounded in its national identity, cultural values and commitment to public welfare.
He also criticised Dewan Rakyat debates for dwelling on outdated issues when the country needed to master artificial intelligence (AI) and emerging technologies.
"If we look at debates in Parliament now, they are not reaching for the skies. They are discussing who is Islamic, who is not, who is a hypocrite and who is not.
"We are still bound by rigid, outdated and backward ways of thinking," he said.
Anwar said Malaysia could not afford to approach economic development with outdated thinking, stressing that industries must modernise and adapt swiftly to technological change to remain competitive.
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