PUTRAJAYA: Deputy Prime Minister Datuk Seri has reminded small and medium enterprises that genuine transformation must originate within each organisation despite government support through policies and incentives.
Fadillah, who is also Energy Transition and Water Transformation Minister, emphasised that leaders must acknowledge people as the driving force behind every successful enterprise rather than mere resources.
“Investing in talent is investing in the future of your business and, ultimately, the nation,” he stated while officiating the SME HR Conference 2025.
He highlighted the crucial role of SMEs in Malaysia’s economy, noting they contribute 40% of gross domestic product and employ nearly half of the national workforce.
Fadillah explained that SME challenges in attracting skilled talent, retaining employees, and meeting compliance requirements represent national concerns impacting Malaysia’s competitiveness.
He called for a mindset shift among SME founders who frequently perceive human resource management as a cost centre instead of a strategic growth driver.
Data from SME Corp Malaysia indicates that SMEs with structured HR practices grow 2.5 times faster and scale three times more efficiently than those without.
The deputy prime minister also outlined emerging HR trends shaping the future of work, including AI-driven recruitment and skills-based hiring.
He highlighted hybrid work arrangements, employee wellbeing initiatives, and diversity and inclusion as additional key trends.
Fadillah also noted the importance of agile performance management and ESG-linked practices in modern business operations.
“These are not future possibilities, they are realities already shaping businesses globally,” he remarked.
He questioned whether Malaysian SMEs would adapt quickly enough to capitalise on these opportunities for growth and competitiveness.
Fadillah concluded that businesses embracing these changes would thrive while those delaying risked being left behind. – Bernama
