SME News | Fuel rationalisation plan must be foolproof, says business group

PUTRAJAYA cannot leave it to the last minute to reveal how the diesel subsidy, on which small - and medium - sized enterprises (SMEs) are heavily reliant, will be rationalised, a trade group said.
SME Association of Malaysia secretary - general Chin Chee Seong said targeted subsidies will have a cascading effect on the transport and logistical costs of SMEs.
“There will also be inflationary pressures, as higher transport costs will be passed on to consumers, potentially reducing demand and affecting SME revenues,” he told The Malaysian Insight.
He added that higher diesel costs could reduce competitiveness as local SMEs may struggle to absorb higher operational costs and be forced to downscale.
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