The government wants local entrepreneurs to change their approach from simply producing products in Malaysia to developing products that are designed, created and owned by local people.
The move is seen as important to ensure that Malaysian brands do not continue to depend on price competition, but are instead able to offer their own value, innovation and identity in the global market.
‘Made by Malaysia’ Becomes a Target
Minister of Entrepreneur and Cooperative Development, Steven Sim, said Malaysia needs to shift from the traditional ‘Made in Malaysia’ model to ‘Made by Malaysia’ which is more based on local talent, design and innovation.
According to him, reliance on low-cost models is increasingly risky when regional countries also compete to offer cheaper labor costs and operating costs.
Competition based solely on price can ultimately cause companies to continue to lower prices until Malaysia’s competitive advantage is further eroded.
Malaysia Cannot Continue to Play on Price
The government wants Malaysian brands to be better known based on value, not just cheap prices.
According to Steven Sim, local brands need to provide consumers with confidence in terms of safety, health and hygiene, in addition to having a higher level of innovation.
This approach is important as technology develops rapidly and global competition becomes fiercer.
Malaysia also needs to move from simply imitating products to producing its own innovations.
AI Changes the Business Game
The development of artificial intelligence (AI) technology has also made competition faster.
Steven Sim gave the impression that the technology used by companies today can become outdated in a short period of time when competitors introduce newer technologies.
This situation means that Malaysian companies need to continue to innovate if they want to maintain competitiveness in the global economy.
Government Provides RM230,000
In an effort to help local companies increase their credibility, SME Corp Malaysia has allocated RM230,000 to help small and medium-sized companies obtain certification under the Malaysian Brand program.
Around 40 companies have benefited from the allocation throughout 2025 and 2026.
The government will also assess the need to increase the amount of allocation in the future if demand continues to increase.
RM15 Billion for Local Entrepreneurs
Apart from brand certification, the Ministry of Entrepreneur and Cooperative Development also provides financing support through the PowerUp10K program.
The program is targeted to provide financing of up to RM15 billion to local entrepreneurs by the end of 2026.
As of the end of July, around RM9 billion has been approved and is being disbursed to about 250,000 entrepreneurs.
The fund is not only intended to help businesses survive, but also support companies that want to grow and move to higher levels of the value chain.
Malaysian Brands Need to Go Global
The transition to ‘Made by Malaysia’ is not just a change in the label on products.
It aims to have more products with local design, technology, innovation and intellectual property.
With this approach, Malaysian companies have the potential to gain higher added value and not be overly dependent on production cost advantages.
NMMB Increases Consumer Confidence
The National Mark of Malaysian Brand (NMMB) functions as a certification initiative to recognize products and services of micro, small and medium enterprises that meet the standards of Quality, Excellence and Excellence.
The certification is not just recognition, but can be a symbol of credibility that helps local products gain consumer trust and open up wider opportunities in the international market.
Its Impact on the Economy
The shift from ‘Made in Malaysia’ to ‘Made by Malaysia’ has the potential to increase the added value of the local economy as companies begin to focus more on innovation, design and product ownership. If more PMKS succeed in building high-value brands, Malaysia has the potential to reduce its dependence on low-cost models, increase exports of value-added products and strengthen its competitiveness in the global supply chain.
Key Takeaways
The government wants entrepreneurs to move from ‘Made in Malaysia’ to ‘Made by Malaysia’.
Competition based solely on price is seen as increasingly risky.
Local brands need to emphasise value, safety, health and innovation.
SME Corp provides RM230,000 to help companies obtain Malaysian Brand certification.
Around 40 companies will benefit from the allocation in 2025 and 2026.
The PowerUp10K programme is targeted to provide up to RM15 billion in financing to local entrepreneurs.
Around RM9 billion has been approved as of end-July to around 250,000 entrepreneurs.
The government wants local companies to move from cost competition to higher value chains.
The change from ‘Made in Malaysia’ to ‘Made by Malaysia’ shows that Malaysia wants to move beyond a low-cost production model to an economy that is more based on innovation and local ownership.
The question is no longer just how cheaply Malaysian products can be produced, but how much value Malaysians can create for the global market.
