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Supply chain resilience is becoming a critical issue for small and medium-sized enterprises (SMEs) in Malaysia, according to Mukmin Malaysia, an organization representing the Indian Muslim community. According to the group's president, Shahul Dawood, supply chain disruptions and rising costs now pose a threat to SMEs, not just large corporations.

Dawood emphasized that supply chain volatility is a significant risk factor for SMEs with limited financial resources. Even a single disruption or a sharp increase in raw material prices can directly impact the operations of small businesses. These enterprises lack the financial capacity to absorb escalating operational expenses across energy, transport, and raw materials, which forces owners to raise consumer prices or face closure.

Shahul is calling on the Malaysian government to include supply chain resilience in the 2027 budget. He suggests introducing targeted financing schemes, extending government credit guarantees, and ensuring that the RM10 billion procurement target under the Indian Muslim Transformation Framework 2030 directly benefits SMEs.

To strengthen long-term capacity, Dawood proposes setting up a local supplier matching database, offering tax incentives for dual-sourcing, and providing SMEs with access to artificial intelligence tools for inventory forecasting. He stresses that empowering small businesses through talent development and digital adoption will help maintain the domestic economy's resilience when facing global supply shocks.