More Support Needed For Logistics SMEs Amid Geopolitical Uncertainties -- Maritime Expert
By Harizah Hanim Mohamed
KUALA LUMPUR, Sept 1 (Bernama) -- Budget 2027 should prioritise support for small and medium enterprises (SMEs) in the logistics ecosystem to help them navigate geopolitical uncertainties, adopt artificial intelligence (AI) and meet environmental, social and governance (ESG) requirements, said an analyst.
Maritime industry analyst Nazery Khalid said smaller logistics players are more vulnerable to external shocks as they lack the financial resources and institutional backing enjoyed by larger industry players.
Logistics players are already reeling from disruptions in the Gulf and uncertainties affecting shipping flows amid heightened geopolitical and geoeconomic risks, he said.
"But of course the government cannot possibly help everyone, right?" he told Bernama.
Nazery noted that this made it important for Budget 2027, which is scheduled to be tabled in Parliament on Oct 9, to identify and prioritise the most serious pain points that could disrupt Malaysia's supply chains.
"Now what's important is a question of prioritising what are the areas, the serious pain points, which can really cause a lot of pain and also disrupt the supply chain to a certain extent where we don't want our trade to be too severely disrupted, and also our energy needs, which of course are very crucial to running the economy, to be impeded as well," he said.
SUPPORT NEED NOT BE FINANCIAL
Nazery said that government support for ports and logistics players need not necessarily come solely in the form of financial assistance, with facilitating policies also playing an important role.
"For example, in the case of our ports which want to expand their green site, they want the land approval aspect to be quickened so they can quickly get their plans moving," he said.
He cited ongoing port expansion as an area where facilitating approvals could help industry players move their development plans forward more quickly.
Nazery said greater attention should particularly be given to SMEs involved in the port and logistics ecosystem, as they could be among the most severely affected by external uncertainties.
"There's also a need for the government to assist logistics players among the SMEs, which I think will be the most severely impacted because they lack the deep pockets and the kind of support that they get compared to the big boys like Westport, Port of Tanjung Pelepas and so on, which have got strong institutional shareholders behind them," he said.
He said smaller players would need assistance to keep pace with changes across the industry, including the adoption of new technology and sustainability requirements.
"So for example in terms of adoption of AI and so on, obviously the SMEs which are involved in the port and logistics ecosystem need a lot of help in terms of adoption of AI, in terms of adhering to ESG principles," he said.
Nazery said SMEs also need assistance in navigating an increasingly volatile and uncertain global operating environment.
"They, more than anyone else, require all kinds of help.
"Institutional support, even financial support, maybe in terms of grants and so on. So I think certainly they will be looking at these kinds of things in their personal wish list for the next budget," he added.
-- BERNAMA