SMEs welcome re-opening of borders, endemic stage

SMALL and Medium Enterprises Association of Malaysia, SAMENTA, welcomes the announcement by the Prime Minister of the re-opening of our international borders from 1 April 2022.

2. The re-opening of our borders will significantly aid in the recovery of our economy. Our economy grew by a modest 3.1 percent last year against a 5.6 percent decline in 2020, primarily the result of an extended lockdown coupled by the continued closure of our borders. With the lifting of restrictions such as mandatory quarantine, our goal for a 5.5 - 6.0 percent GDP growth for 2022 is now more realistic.

3. The tourism sector will be the largest beneficiary of today’s announcement, but all SMEs will benefit through better facilitation of trade and business.

4. On 20 February 2022, SAMENTA called for a quick re-opening of the borders and a move to endemic stage. We are happy to note that a firm date has now been announced for both. This is a clear signal that we are not going back to the previous uncertainties and difficult business climate as experienced during the various lockdowns in 2020 and 2021.

5. The recovery of our SMEs remain fragile. Today’s announcement will help support this recovery, but more help in the form of automation and pre-shipment financing will be needed as productivity and cash flow remain as key challenges for Malaysian SMEs.