By: Jotham Lim
The Minister of Entrepreneur Development YB Datuk Seri Mohd Redzuan Yusof, emphasised that the current regulatory framework here in Malaysia is not enough to empower SMEs looking for rapid growth.
When asked further, YB Redzuan mentioned that deregulations should happen specifically to speed up the bureaucratic process. He cites various examples of local Malaysian companies moving overseas, being listed on the New York Stock Exchange and the Hong Kong Stock Exchange, because Malaysia does not provide the necessary framework for Small-Medium Enterprises to expand.
“Our current regulation does not allow us to gain speed,” said Redzuan. “Malaysia is very highly regulated due to international norms. It is hard for corporations to get the necessary funding, despite showcasing innovation and potential on their part.”
As an example of how regulation has restricted SME growth, Redzuan cites a case study, where companies looking to access drone technology for delivery purposes are restricted due to air space regulations, limiting the commercial viability for many tech startups.
“The objective here is to cut down friction and move fast to capture opportunities. WE need to provide these SMEs the necessary regulatory framework and space needed for these companies to grow,” Redzuan further commented.