SME Sector Seen As Key In Expanding Malaysia-India Economic Ties

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, Jan 28 (Bernama) -- Small and medium enterprises (SMEs) should be a key focus in efforts to deepen Malaysia-India economic ties, as India offers vast market opportunities for Malaysian businesses seeking to expand overseas, said ASEAN-India Economic Council chairman Datuk Ramesh Kodammal.

He said that while large corporations have already established cross-border networks, SMEs require greater support to enter new markets, particularly India, which presents strong potential for trade and joint ventures. “When we are talking of businesses, the corporate businesses have already got their links, but the SMEs need new players, new markets, and India is a huge market,” he told Bernama TV’s “The Nation: Diplomatic Dispatch” programme.

Ramesh said Malaysian SMEs can explore opportunities either through direct exports or by forming joint ventures with Indian partners to manufacture products for the Indian market. He added that SMEs often face challenges in understanding how to begin expanding abroad, but noted that various agencies and business chambers are available to provide guidance and support.

“Malaysian SMEs are very fortunate that the Malaysia External Trade Development Corporation (MATRADE) provides a lot of information to them. There are also a lot of chambers of commerce that can advise SMEs, like the Malaysia India Business Council and the Kuala Lumpur and Selangor Indian Chamber of Commerce, and also various Indian groups who are working with India," he continued.

He said closer collaboration between SMEs and business chambers is needed to help companies identify opportunities and navigate the Indian market effectively.

Against this backdrop, Ramesh said digital technology and artificial intelligence (AI) are emerging as key enablers in strengthening Malaysia-India economic relations, particularly in supporting SME growth and innovation. He noted that digital investment is a major focus area, with both countries exploring closer collaboration in AI and related technologies. “We are looking at digital investment, and we are working aggressively to see that the digital council for both countries can be formed,” he added.

Ramesh said India’s capabilities in AI could support Malaysia’s digital development efforts, including interest from Indian companies in setting up AI training centres locally. “Malaysia needs a lot of ideas and support to work on this platform (AI), and India can provide it,” he added.

Beyond digital cooperation, Ramesh reckons that the pharmaceutical sector also offers strong potential for bilateral collaboration, given India’s strengths in pharmaceutical manufacturing. He said enhanced cooperation in pharmaceuticals could support Malaysia’s healthcare supply chain while positioning the country as a manufacturing and export base for the region, leveraging existing trade linkages between both countries to serve ASEAN and other markets.

-- BERNAMA