Kuala Lumpur (VNA) – Small and medium enterprises (SMEs) in Malaysia have been advised to focus on strengthening their institutional foundations instead of pursuing rapid expansion, as the country’s economy maintains stability alongside a stronger ringgit.
FSG Advisory Sdn Bhd chief executive officer Dr Anthony Dass said the next five years will be a critical period for businesses to address structural weaknesses and build sustainable growth.
He stressed that currency stability alone does not automatically strengthen enterprises, but it provides a more predictable and manageable operating environment.
The Malaysian ringgit has appreciated by more than 14% against the US dollar since the beginning of 2025, making it one of Asia’s best-performing currencies.
Dass said this is the time for businesses to repair balance sheets, ensure adequate liquidity and tighten operational discipline. He emphasised that responsibility has shifted from merely enduring market pressures to proactively strengthening institutional resilience.
To secure sustainable development, SMEs should enhance operational credibility by systemising documentation processes, strengthening supervision and ensuring consistent performance in line with high standards. Increasingly, banks and business partners select firms based on reliability, compliance and financial soundness rather than personal relationships.
The economist warned that risks often accumulate from seemingly minor decisions, such as delaying system upgrades or relying excessively on short-term financing. Over time, these incremental weaknesses can become structural vulnerabilities when market conditions deteriorate.
He urged businesses to use the current period of stability as an opportunity to prepare for inevitable market shifts, act decisively, and reinforce their organisational foundations before future crises expose underlying weaknesses./.
