Kuala lumpur: Budget 2027 should prioritise support for small and medium enterprises (SMEs) in the logistics ecosystem to help them navigate geopolitical uncertainties, adopt artificial intelligence (AI), and meet environmental, social, and governance (ESG) requirements, said an analyst. Maritime industry analyst Nazery Khalid highlighted the vulnerability of smaller logistics players to external shocks due to their limited financial resources and lack of institutional backing compared to larger industry players.
According to BERNAMA News Agency, logistics players are already facing disruptions in the Gulf and uncertainties affecting shipping flows amid heightened geopolitical and geoeconomic risks. Nazery emphasized the importance of Budget 2027, scheduled to be tabled in Parliament on October 9, in identifying and prioritizing the most pressing issues that could disrupt Malaysia's supply chains.
Nazery further explained the necessity for prioritisation, stating, "Now what's important is a question of prioritising what are the areas, the serious pain points, which can really cause a lot of pain and also disrupt the supply chain to a certain extent where we don't want our trade to be too severely disrupted, and also our energy needs, which of course are very crucial to running the economy, to be impeded as well."
He noted that government support for ports and logistics players need not solely be financial, with facilitating policies playing a crucial role. For instance, he pointed out the need for expedited land approval processes for ports wishing to expand their green sites, allowing them to advance development plans more quickly.
Nazery underscored the importance of focusing on SMEs within the port and logistics ecosystem, as they are likely to be the most severely impacted by external uncertainties. He stressed the need for government assistance to help these smaller players keep pace with industry changes, including technological adoption and sustainability requirements.
"In terms of adoption of AI and so on, obviously the SMEs which are involved in the port and logistics ecosystem need a lot of help in terms of adoption of AI, in terms of adhering to ESG principles," he stated. He also noted the necessity of support in navigating an increasingly volatile global operating environment.
Nazery concluded by highlighting the various forms of assistance SMEs may require, including institutional support and possibly financial aid in the form of grants, as part of their wish list for the upcoming budget.