PETALING JAYA — The Small and Medium Enterprises Association of Malaysia (SAMENTA) marked its 40th anniversary with a renewed ambition to help Malaysian small and medium enterprises move beyond competing on cost and become owners of brands, designs and intellectual property.
Celebrating four decades since its establishment in 1986, Malaysia’s oldest SME association said its next chapter will centre on a clear direction — “From OEM to IP: Made by Malaysia, powered by AI.”
The milestone was commemorated at the SAMENTA 40th Anniversary Ruby Gala, held at M World Hotel in Bandar Utama, Petaling Jaya, bringing together members, industry partners and organisations that have supported the SME community over the years.
From Penang Beginnings to a Nationwide SME Voice
SAMENTA was founded in Penang in 1986 by Tun Dr Lim Chong Eu, then Chief Minister of Penang, with an initial mission to help local SMEs develop into capable suppliers for the state’s emerging electronics manufacturing industry.
Over the following four decades, it evolved into a nationwide, multi-racial and multi-sector organisation representing businesses across manufacturing, services, logistics, food and technology.
Today, SAMENTA has more than 4,000 members nationwide and continues to represent SME interests through policy advocacy, capacity building, business matching and international market access.
Its advocacy work has included engagement with government ministries, regulators, agencies and financial institutions on issues ranging from financing and regulation to supply chains.
More recently, SAMENTA has been actively engaging policymakers on issues affecting businesses, including e-invoicing implementation and minimum wage policy, while continuing its wider work on financing, regulation and supply chains.
Four Decades Through Malaysia’s Biggest Economic Challenges
Reaching the 40-year milestone also reflects the resilience of Malaysia’s SME community.
SAMENTA has operated through the 1997 Asian Financial Crisis, the 2008 global financial crisis, the Covid-era pandemic, and the latest wave of fiscal and labour reforms.
While the challenges confronting businesses have changed considerably since 1986, the association believes SMEs continue to need strong representation in policymaking.
Four decades ago, many SMEs were primarily concerned with obtaining financing, securing orders from multinational companies and maintaining factory operations.
Today, those challenges remain, but businesses must also navigate AI and digitalisation, ESG requirements from global buyers, higher wage and compliance costs, e-invoicing, tax changes and geopolitical shifts affecting global supply chains.
AI, Intellectual Property and ESG Lead the Next Chapter
For the 2026–2029 term, SAMENTA’s National Council has identified three major priorities.
The first is AI, digitalisation and policy reform, with the association seeking to help SMEs adopt artificial intelligence in practical, everyday business operations while continuing to advocate structural reforms that make it easier to do business.
The second is the shift “From OEM to IP: Made by Malaysia.”
SAMENTA wants more Malaysian SMEs to progress from manufacturing products for other companies to owning their own brands, designs and intellectual property — enabling them to compete on value and innovation rather than cost alone.
The third priority is ESG and the circular economy, with SAMENTA seeking to make sustainability more accessible and affordable for SMEs so they can meet international requirements without being excluded from global export supply chains.
Over the next decade, the association wants to see Malaysian SMEs competing increasingly on ideas and value instead of price alone.
Taking AI Beyond Kuala Lumpur and Penang
Digital transformation has already become a major part of SAMENTA’s work.
Its Hyperlocal AI Fest, launched as a national tour in 2025, expanded into a 50-city programme in 2026, bringing practical AI training to SMEs in secondary cities and towns rather than concentrating such initiatives only in Kuala Lumpur and Penang.
The association has also introduced ASEAN’s first Circular Economy Certification, alongside RetailTech+ and its Digitalisation Grader tool to help SMEs assess their progress in sustainability and digital adoption.
In October 2026, SAMENTA also signed an MOU with Intel, MRA and PPKM covering AI and digital adoption for retail, food and beverage businesses and SMEs at RetailTech.
SAMENTA’s internationalisation efforts have also produced tangible results. Its 2023 SME Trade Mission to Taiwan attracted more than 200 Malaysian SMEs and generated RM58.6 million in potential business, with support from MATRADE and other agencies.
Rising Costs, Financing and AI Gap Remain Major Challenges
Despite the opportunities ahead, SAMENTA identified three major challenges currently confronting Malaysian SMEs — the rising cost of doing business, access to financing and the widening digital and AI gap.
The association said wage policies, foreign worker costs, tax changes and compliance requirements such as e-invoicing are affecting businesses simultaneously.
It believes reforms should be introduced progressively and has advocated for policies such as minimum wages to take into account differences between regions and company sizes.
Financing remains another obstacle, particularly when viable SMEs struggle to qualify under lending requirements designed around larger corporations.
At the same time, SAMENTA warned that larger companies are moving rapidly into AI while many smaller businesses have yet to begin their adoption journey, potentially turning the digital divide into a broader competitiveness gap.
Honouring Four Decades of SME Advocacy
The Ruby Gala also paid tribute to individuals and organisations that have contributed to SAMENTA’s journey.
Long-time SME advocate and former SAMENTA Secretary General Yeoh Seng Hooi received the Presidential Award, while SME Corp, MPC, MATRADE, MIDF, INSKEN and SIDEC were recognised with Friends of SAMENTA Awards.
The evening also featured a SAMENTA History Walk chronicling the association’s development from 1986 to 2026, a 40-year journey video and an anniversary cake-cutting ceremony led by the National Council.
Sponsors recognised during the celebration included U Mobile as Ruby Legacy Sponsor, alongside Emerging EPC, Sun Synergy, Hong Leong Bank and G&A Group (Baker Tilly LSC PLT).
The gala followed the SAMENTA SME CEO Forum 2026, held earlier in the day.
As SAMENTA enters its fifth decade, its message to Malaysia’s SME community is increasingly centred on moving up the value chain.
For an economy supported by approximately 1.1 million micro, small and medium enterprises, SAMENTA believes the next phase of growth will require businesses to invest in technology, build intellectual property and strengthen their own Malaysian brands.
Its direction for the years ahead is encapsulated in one message: Malaysian SMEs can no longer compete on cheap alone — the future is “Made by Malaysia, powered by AI.”