Malaysia’s SMEs Confront “Survival Zone”?

 

Samenta president Datuk William has warned that many Malaysian SMEs lack the financial and technical capacity to cope with overlapping compliance demands coming into force this year. This is prompting warnings that many businesses could struggle to survive without urgent government intervention. 

The Small and Medium Enterprises Association Malaysia (Samenta) said SMEs were entering a “survival zone” in 2026, as the cumulative cost of compliance reaches what it described as a breaking point. 

Source: https://www.wikiimpact.com

 

The Stamp Duty Self-Assessment System, the Multi-Tier Levy System for foreign workers, preparations for sector-specific carbon taxes, mandatory e-invoicing for SMEs with annual revenue above RM1 million, and new operational requirements tied to business licensing are some of the regulatory requirements. Additional obligations linked to environmental, social and governance (ESG) standards are also expected to intensify, particularly for firms connected to multinational or export-oriented supply chains. Many SMEs lack the financial capacity and in-house expertise to manage the overlapping timelines and technical demands imposed by these rules. 

SMEs typically operate on net margins of between 10 and 15 per cent, Samenta noted, but much of that is now being eroded by what it described as defensive spending on compliance rather than investment for growth. Samenta also highlighted that while SMEs are not directly required under Malaysia’s National Sustainability Reporting Framework to track carbon emissions, many are effectively compelled to do so because of reporting demands imposed by larger corporations and multinational clients. 

Calling for a change in regulatory approach, the association urged the government to move away from rigid, rule-based enforcement towards incentive-driven facilitation.  Among its proposals are a 24-month moratorium on new regulatory costs, funding for AI-powered ESG reporting tools, and industry-led training programmes to help SMEs develop in-house compliance capabilities. Without such measures, Samenta warned, compliance risks becoming not a pathway to competitiveness, but a barrier to business survival. 

Reference:

Samenta: Malaysia’s SMEs confront ‘survival zone’ under expanding compliance rules, Malay Mail, 5 January 2026

“Empty Seat Principle”

 

The “EMPTY SEAT PRINCIPLE” is how Jack Ma turned one embarrassing moment before Alibaba became one of the most valuable companies in the world. He lived through a moment most people would never recover from. 

In the early days of his English school in Hangzhou, Jack held a small seminar and invited 20 local business owners. 

He was excited.

He prepared notes.

He rehearsed every line.

He set out 20 chairs. 

When the seminar began… only one person showed up. Not twenty. Not ten. Not five. One. A single man sat in the front row surrounded by nineteen empty seats. Jack Ma felt his stomach drop. He considered cancelling. He considered apologizing. He considered quitting. But instead, he walked to the podium, bowed, and said: “If you showed up, I will give you everything I prepared as if the room was full.” He taught for 2 hours. 

He delivered every example. He shared every idea. He gave his absolute best… To an audience of one. Years later, when Alibaba had thousands of employees, Jack Ma referenced that day and said: “If you cannot serve one person well, you cannot serve a million.” That moment, that humiliation, became the seed of his entire philosophy: Small audiences’ matter. Small beginnings matter. Small rooms matter. One person matters. The empty seats never discouraged him. They disciplined him. Because Jack Ma understood something most entrepreneurs forget: Success is not built when the room is full. Success is built when you perform even when the room is empty. 

The “Empty Seat Principle” teaches this: Excellence is not a performance for the crowd. Excellence is a habit you practice long before the crowd arrives. Small numbers are not a problem. Small effort is. Show up fully, even when no one else does. Because the day you stop despising small beginnings is the day your reputation starts growing bigger than your audience.

 

Reference:

Post by Dr Ahmad Sabirin Arshad, https://www.linkedin.com/

MEX II Sukuk Holders Sue Banks!

 

CIMB Group Holdings Bhd’s investment banking arm, CIMB Investment Bank Bhd (CIMB IB), and 11 others have been hit with a RM1.38 billion suit from sukuk holders of the MEX II highway. The suit was filed by 14 holders of the sukuk murabahah issued by MEX II Sdn Bhd over losses they allegedly suffered from the purchase of the notes. CIMB said the plaintiffs filed amended writ of summons and statement of claim on Jan 2, 2026, which were served on CIMB IB. 

Besides CIMB IB, the other defendants are MEX II; Maju Lingkaran Development Sdn Bhd; Maju Holdings Sdn Bhd; Tan Sri Abu Sahid Mohamed, his wife and son; Datuk Yap Wee Leong; TMF Trustees Malaysia Bhd; Crowe Malaysia PLT; HSS Engineers Bhd 30%-owned associate HSS Integrated Sdn Bhd; and Straits Consulting Engineers Sdn Bhd.

 

Source: https://en.wikipedia.org

 

The sukuk holders, it said, are seeking a court declaration that CIMB IB is jointly and severally liable with the other defendants for all losses suffered by the plaintiffs arising from the purchase of the sukuk murabahah. Consequently, the sukuk holders seek judgement against each of the defendants for the “dissolution amount” of RM1.38 billion as at Jan 3, 2022, or an amount the court deems fit. Alternatively, in CIMB IB's case, “restoring and/or making good” to the plaintiffs, CIMB IB’s proportionate share of such losses. CIMB said the suit is not expected to have a material operational or financial impact on the group. The lender said it is confident that CIMB IB has at all material times performed its duties and obligations in its various capacities in accordance with standards prescribed by law and contractually. 

The 14 sukuk holders who initiated the suit are Credit Guarantee Corporation Malaysia Bhd; Amanah Raya Bhd; Syarikat Takaful Malaysia Keluarga Bhd; Syarikat Takaful Malaysia Am Bhd; Zurich Life Insurance Malaysia Bhd; Zurich Takaful Malaysia Bhd; RHB Asset Management Sdn Bhd; RHB Islamic International Asset Management Bhd; Maybank Trustees Bhd; Amanahraya Trustees Bhd; HSBC (Malaysia) Trustee Bhd; AHAM Asset Management Bhd; AIIMAN Asset Management Sdn Bhd; and OPUS Asset Management Sdn Bhd. The 14 hold about RM563.2 million or 43.33% of the RM1.3 billion sukuk murabahah. The MEX II sukuk was issued in 2016 for the construction of the 16.8km three-lane dual-carriageway connecting the Putrajaya Interchange of the MEX I Highway and KLIA/KLIA 2. 

MEX II was initially slated for completion in November 2018 but was deferred to October 2019. However, the highway remains incomplete as of now. MEX II’s sukuk faced issues in paying its principal and profit in 2021, which saw it defer payments. The debt notes were suspended by end-2021 by CIMB IB, after payments due were not received despite extensions granted by sukuk holders. Following the default and subsequent failed restructuring attempts, MEX II was placed under receivership in 2022. Meanwhile, the highway project remains stalled. 

This is a complicated case with fraud, alcohol, women and wine. It will take some effort on the sukuk holders to prove CIMB IB had failed to conduct detailed due diligence, but it addresses the issue that banks have to be more vigilant on management and shareholder backgrounds. 

Reference:

CIMB Investment Bank, 11 others hit with RM1.38b suit from MEX II sukuk holders, Izzul Ikram, theedgemalaysia.com, 6 January 2026

Could Kuala Lumpur Office Glut Worsen?

 

The office market in the capital city could face further pressure with the incoming supply of nearly six million square feet of new space, a property report warned. The under-construction space comprises eight buildings, the majority of which are in the city centre, according to Rahim & Co’s Property Market Review 2025/2026. Nationwide office occupancy rates fell to 77.8% at June-end before slightly improving to 78% by September, the report said. 

The real estate consulting firm reiterated the need for repurposing or asset enhancement strategies to reduce vacancy. Kuala Lumpur continues to hold the largest concentration of purpose-built office space in the country, with total supply reaching 109.86 million sq ft in the first half of 2025. Occupancy stood at 72.2%, leaving around 30.51 million sq ft of vacant space, largely in older buildings.

 

 The rise of new office hubs, including the Tun Razak Exchange, Merdeka 118, IOI City Towers and Pavilion Damansara Heights, has left ageing and underperforming buildings struggling to compete. 

Many offices built in the early 2000s no longer meet current standards for design, environmental performance, or technological readiness, contributing to a surplus of obsolete space. Demand for office space in Kuala Lumpur is concentrated in premium, ESG-certified, transit-accessible locations, supported in part by international interest driven by agencies such as InvestKL and Mida, Rahim & Co said.

In neighbouring Selangor, the country’s economic powerhouse, the office sector had a total supply of 50.58 million sq ft as of the first half of 2025 with an average occupancy rate of 72.5%, leaving about 13.9 million sq ft of vacant space. Petaling Jaya accounted for the largest concentration, with 20.2 million sq ft across 90 office buildings, representing 40% of the state’s stock. One new office building is currently under construction, which will add more than 350,000 sq ft of space once it is completed. 

One cannot blame banks for this situation; it is the government that approves these developments. It must be more rigorous on approvals and projections made. Private developers will always suggest it is feasible and justify construction of “unwanted” green buildings when old ones remain largely vacant. 

How do we solve this problem? Maybe the new Minister (of Federal Territories) could enforce structure plans and review the approval process? 

Reference:

Kuala Lumpur office glut could worsen, property report warns, Choy Nyen Yiau & Eng Wen Tzer, theedgemalaysia.com, 9 January 2026

Why Leave?

 

National Registration Department director-general Badril Hisham Alias released the latest statistics on the number of Malaysians who have relinquished their citizenship in the past five years. It stands at 61,116. It should concern Malaysians. Of this, 93.78 percent of those who renounced Malaysian citizenship choose one neighbouring country, the issue is not migration. It is failure.

Citizenship, in theory, is supposed to represent belonging, opportunity, and protection. However, for a growing number of Malaysians - especially those in their prime working years - it has become an economic handicap. Lower wages, slower career mobility, rising cost of living, and weak social safety nets turn being a Malaysian into a financial sacrifice. The numbers tell a brutal story. The largest group relinquishing citizenship is aged 21 to 40, representing young professionals, skilled workers, and parents raising families. These are precisely the people Malaysia claims it wants to retain. Instead, we are exporting them.

Source: https://en.wikipedia.org

Women are leading this trend, with over 35,000 of them renouncing their citizenship. And it is not simply due to marriage. It reflects how Malaysia’s policies repeatedly place women in impossible positions - between family unity and legal status, between children’s security and national allegiance. When the system forces families to choose, families will choose survival over symbolism.

The Singapore factor exposes an uncomfortable truth. Malaysia competes directly with Singapore and is losing. It is not because Singapore “steals” our people, but because it offers what Malaysia increasingly does not - predictable wages, dignified work, efficient governance, and a future that feels planned rather than improvised.

If this trend continues, the question will no longer be about how many Malaysians are leaving but who’s left to build the country.

Radical thinking and radical reforms are required. But Madani doesn’t want to rock the boat. No point having Talent Corp. Its performance is below satisfactory, not because it is not competent but national policies don’t work well to retain the good ones. This is an emotive issue, and only rational people can work-out potential solutions.

Reference:

Letter | When citizenship becomes a liability, not privilege, KT Maran, Malaysiakini, 8 January 2026

Malaysia’s Non-Citizen Population!

 

Malaysia's non-citizen population is projected to reach 3.38 million in 2025, with an annual growth rate declining to -0.5 percent compared to 2024, according to the Statistics Department (DOSM). Based on the International Migration Statistics, Malaysia 2025 report released by DOSM, the composition of the non-citizen population has decreased from 10.0 percent in 2024 to 9.9 percent in 2025. 

This is the first time DOSM has released the International Migration Statistics, Malaysia 2025 publication, in line with the United Nations’ Recommendations on Statistics of International Migration and Temporary Mobility 2025, which encourages member countries to provide integrated and continuous statistics on both stocks and flows of international migration.

 

Source: https://commons.wikimedia.org

According to DOSM, these statistics are crucial for policy formulation and the planning of international migration-related programmes, as well as serving as a reference for researchers and academics.

International migration plays a significant role in shaping the country's population structure, with direct implications for the labour market, social services provision, and socio-economic development planning. 

There are several points that deserve further scrutiny:

-Where are they located?

-Are they with proper permits?

-What’s the number that are seen as illegal or have overstayed?

-From which countries are they from?

-Are they with families?

-Are they using government facilities – hospitals, schools etc?

-How many are employed gainfully? 

To develop a proper plan for future automation; legalising the illegals; planning on social services and other related areas, more information is required. Then there are implications that impinge on the local population – how do they feel; and their views on resources utilised; employment impact and others. The present effort is good but more needs to be done. 

Reference:

Malaysia's non-citizen population estimated at 3.38m in 2025 – DOSM, Bernama,
24 December 2025

Effective Delegation: Phrases to Get It Right?

 

Your words are sabotaging your delegation. Vague language only creates more work for yourself. A lot of business owners think they're delegating when they're just handing out tasks and hoping for the best. Actual delegation isn't dumping work on someone else's path. It's giving them the outcome you need. The context to understand why it matters, and then getting out of the way. Use these 10 phrases when delegating:

Delegation only works when you're clear about the outcome, trust the person to get there, and then get out of the way. Do you struggle more with delegating or trusting to get things done right? 

Reference:

Effective Delegation: 10 Phrases to Get It Right, Andrew Faber, Linkedin