PETALING JAYA, Oct. 6 -- Former Finance Minister Lim Guan Eng has urged that all foreign investors and contractors be required to source at least 50 per cent of their supplies from local manufacturers to protect small and medium enterprises (SMEs).

Lim said he raised the proposal during a meeting of government MPs with Prime Minister Datuk Seri Anwar Ibrahim on Oct 5, ahead of the 2026 Budget.

He said the move would help safeguard local businesses struggling under the impact of US tariffs.

"The role of SMEs in Malaysia cannot be ignored. They contribute 38 per cent of GDP, generate 48 per cent of employment, and account for almost 13 per cent of total exports. Any disruption to SMEs affects the economy, jobs and the livelihoods of many...