PETALING JAYA 18 March 2026 (The Capital Post)- The Malaysian Employers Federation (MEF) has called for prompt and targeted support measures to help vulnerable micro, small and medium enterprises (MSMEs) cope with rising operational costs linked to the ongoing conflict in the Middle East.
MEF president Datuk Dr Syed Hussain Syed Husman said that while the full economic impact has yet to materialise, many local businesses are already feeling the strain from higher fuel prices, freight charges and insurance premiums as a result of the geopolitical tensions.
He highlighted that MSMEs, which operate on thinner margins and have limited financial buffers, are particularly exposed to these external shocks and could face sustained pressure if disruptions continue. Employers are striving to absorb cost increases, but the federation warned that there is a limit to how much small businesses can withstand without affecting viability.
The MEF urged policymakers to be ready with supportive measures such as temporary financial relief, easier access to working capital and cost‑mitigation initiatives to help MSMEs navigate the uncertain environment. It also emphasised the importance of accelerating productivity improvements, diversifying supply chains and adopting technology to build longer‑term resilience.
Dr Syed Hussain said a “wait‑and‑see” approach could be detrimental, especially for firms still recovering from previous shocks like the pandemic and rising compliance costs, and stressed that contingency frameworks should be prepared now to be deployed swiftly if conditions worsen. -The Capital Post
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