Malaysian MSMEs urged to leverage China Plus One strategy

Malaysian micro, small, and medium enterprises (MSMEs) must leverage the ‘China Plus One’ strategy to strengthen their positions within restructured global supply chains. Deputy Economy Minister Datuk Seri Mohd Shahar Abdullah emphasized that capturing this opportunity requires proving capabilities to global investors through quality, reliability, speed, and talent.

To integrate into global value chains, MSMEs need to meet international standards regarding technical specifications, delivery, data protection, and intellectual property. Furthermore, corporate governance and the ability to demonstrate environmental and social performance are becoming critical for securing financing and market access.

Complementing these strategic shifts, experts suggest that MSMEs must also restructure cash flow management and governance to remain competitive internationally. Lim Lian Kian of UOB Malaysia noted that optimizing cash cycles and utilizing modern supply chain financing can help businesses manage the complexities of cross-border operations and attract global investor confidence.