JOHOR BARU: Small and medium industries (SMEs) are told not to panic in view of the ongoing eurozone debt crisis and the US economic slowdown but to instead look for alternative markets.

South Johor SME Association chairman Teh Kee Sim (pic) said Asean, China and India offered good opportunities as they could expect positive economic growth albeit uncertainties in Europe and the United States.

“Economic slowdown is not something new to us and we (SMEs) are resilient and usually emerge stronger from every crisis,'' Teh told StarBiz.

 South Johor Small and Medium Enterprises chairman Teh Kee Sim

However, he said, Asean, China and India would not provide instant solution to the SMEs as the European countries and the US were still important to the SMEs.

Teh acknowledged that 2012 would be a tough year not only for the SMEs but also multinational corporations (MNCs), but he said that should not stop them from performing well in their business undertakings.

He said other challenges for local SMEs this year included escalating prices of raw materials which could translate into higher operating cost and getting financial support from banks.

Teh said that instead of brooding on the current unfavourable economic situation in Europe and the US, SMEs should already have a business plan or strategies to overcome the negative impact.

“SMEs must be innovative and creative and able to identify and tap the market needs and keep up with the changes in the business world,'' he added.

Teh said that for instance, demand for hard disk drives, semiconductors and automotive parts and components from manufacturers affected by the recent floods in Thailand was on the rise.

He said local SMEs must take advantage of the situation instead of working on their own; those with capabilities and expertise to produce the products should work together as a group to cater for the demand.

Teh said SMEs in Muar had reported that demand for furniture, plywood panels and medium density fibre board from Japan was also rising following the earthquake and tsunami which struck Japan on March 11.

Separately, he said the Government should beef up its efforts to attract companies affected by the recent floods in Thailand and the earthquake in Japan to relocate their operations in Malaysia.

“Malaysia is in a better position to attract them as the country is relatively safe from natural catastrophes compared with other countries in the region,'' said Teh.

He said Johor has an added advantage due to its close proximity with Singapore and MNCs would benefit from the republic's position as an international trade and financial centre.