Kuala Lumpur (VNA) – Malaysia’s Investment,Trade and Industry Minister Tengku Zafrul Aziz has stressed that supportingMalaysian small and medium-sized enterprises (SMEs) is vital as the globalsupply chains are shifting to the Association of Southeast Asian Nations(ASEAN).
The minister said ASEAN is set to become not justthe world's factory but also a significant consumer base.
The 10 ASEAN nations are already home to more than678 million people, with a combined Gross Domestic Product (GDP) of about 3.7trillion USD last year, he said, adding that as a bloc, ASEAN is thefifth-largest economy in the world, with a middle class of roughly 350 million,representing 300 billion USD of disposable income.
Last year, Tengku Zafrul said that when the globalForeign Direct Investment (FDI) fell by 12%, FDI into ASEAN went up by 5%, andits share of global FDI rose to an all-time high of 17%.
According to the official, SMEs' survival in localsupply chains could help them to capitalise on not only ASEAN's growing middleclass but also shifting supply chains to and FDI flowing into this region.
This regional economic integration is also a goalthat is also espoused by the Madani Economy framework, he said.
Tengku Zafrul added that the Malaysian governmentacknowledged the significant influence of external factors on businesses andrecognised that even well-managed companies could suffer setbacks fromcircumstances beyond their control, especially in the ever-evolving economiclandscape.
Sudden shifts in market conditions, unforeseendisruptions, or internal struggles can push promising companies to the brink offailure and have far-reaching consequences for a production's entire supplychain, encompassing suppliers, customers, employees and possibly the surroundingcommunities, he said./.
The minister said ASEAN is set to become not justthe world's factory but also a significant consumer base.
The 10 ASEAN nations are already home to more than678 million people, with a combined Gross Domestic Product (GDP) of about 3.7trillion USD last year, he said, adding that as a bloc, ASEAN is thefifth-largest economy in the world, with a middle class of roughly 350 million,representing 300 billion USD of disposable income.
Last year, Tengku Zafrul said that when the globalForeign Direct Investment (FDI) fell by 12%, FDI into ASEAN went up by 5%, andits share of global FDI rose to an all-time high of 17%.
According to the official, SMEs' survival in localsupply chains could help them to capitalise on not only ASEAN's growing middleclass but also shifting supply chains to and FDI flowing into this region.
This regional economic integration is also a goalthat is also espoused by the Madani Economy framework, he said.
Tengku Zafrul added that the Malaysian governmentacknowledged the significant influence of external factors on businesses andrecognised that even well-managed companies could suffer setbacks fromcircumstances beyond their control, especially in the ever-evolving economiclandscape.
Sudden shifts in market conditions, unforeseendisruptions, or internal struggles can push promising companies to the brink offailure and have far-reaching consequences for a production's entire supplychain, encompassing suppliers, customers, employees and possibly the surroundingcommunities, he said./.
VNA
