Kuala Lampur, Sept. 16 -- When Malaysians hear the phrase 'corporate governance', many immediately picture the boardrooms of listed companies on Bursa Malaysia. We imagine annual general meetings, audit committees and glossy reports. Yet, the truth is that the real governance crisis is happening elsewhere. It is taking place quietly, but with serious consequences, in the small and medium-sized enterprises (SMEs) that make up the fabric of our economy.

These businesses, spread across kitchens, workshops and small factories, account for 97 per cent of Malaysia's enterprises. They contribute close to 38 per cent of national GDP and provide employment for nearly half of the country's workforce. They are the backbone of our economy, yet their...