KUALA LUMPUR, Nov. 5 -- The government is actively reviewing a mechanism to boost business orders for local Small and Medium Industries (SMEs), according to a response in Parliament.

This follows a call from Bagan MP Lim Guan Eng to mandate that all contractors purchase 50 per centof their needs from local SMEs.

"The main problem for Small and Medium Industries (SMEs) in Malaysia is critically weak business orders, to the point that many SME companies doubt their survival by mid-2026 when the full impact of the tariff war is felt," Lim said in a press statement today.

Malaysia's Purchasing Managers' Index, which fell to 49.5 in October, its lowest in four months underscored his concerns, Lim said.

He added that Second Finance Minister...