KUALA LUMPUR, Jan. 5 -- Small and medium-sized enterprises (SMEs) in Malaysia are facing a critical year ahead as a wave of new regulatory and compliance requirements takes effect, prompting warnings that many businesses could struggle to survive without urgent government intervention.

In a statement issued today, the Small and Medium Enterprises Association Malaysia (Samenta) said SMEs were entering a "survival zone" in 2026, as the cumulative cost of compliance reaches what it described as a breaking point.

"While 2025 saw the emergence of the compliance economy, 2026 will see the full roll-out of many of these regulatory burdens," the association said, pointing to a cluster of new rules that came into force from January 1.

Among the...