Govt to meet SMEs tomorrow to discuss impact of Middle East war

 The feedback from the meeting will be brought to the National Economic Action Council on Tuesday before being tabled at the Cabinet.

Economy minister Akmal Nasrullah Nasir stressed that sustaining economic growth in the face of the Middle East war will require continued domestic spending, strong private investment, and the timely implementation of government development projects. (Bernama pic)

PETALING JAYA:

 The government will convene a meeting with representatives from small and medium-sized enterprises (SMEs) tomorrow to assess how the Middle East war is affecting businesses.

Economy minister Akmal Nasrullah Nasir said the meeting will collect sector-specific feedback aimed at helping ease challenges that SMEs are facing and supporting ongoing economic growth, Berita Harian reported.

The Johor Bahru MP said the findings from the meeting will be brought to the National Economic Action Council on Tuesday before being tabled at the Cabinet the following day.

“All discussions on the impact of this conflict are being handled by the council, which has been activated since the conflict began and meets on a weekly basis,” he told reporters at an Aidilfitri open house in Johor Bahru, his parliamentary constituency, today.

Akmal said while Putrajaya is maintaining its gross domestic product (GDP) growth target of 4-4.5% for the year, his ministry is closely monitoring the risks that current geopolitical tensions and global supply chain disruptions will have on the projection.

He stressed that sustaining economic growth will require continued domestic spending, strong private investment, and the timely implementation of government development projects.

Last week, SME Association of Malaysia president Chin Chee Seong urged the government and relevant agencies to implement a targeted six-month loan moratorium or repayment deferment for MSMEs affected by the Middle East war.

This comes after the Federation of Malaysian Manufacturing (FMM) warned that Malaysia’s GDP growth could moderate to between 3.8% and 4.2% if the conflict escalates.

The US and Israel launched large-scale airstrikes against Iran on Feb 28, prompting retaliatory strikes by Iran on US bases and allied positions.

Iran closed the Strait of Hormuz following the strikes, choking a key energy passage and triggering a spike in oil and gas prices which has led to inflationary fears across the globe. - FMT