Factors Influencing the Performance of the Batik-based Apparel SMEs in Malaysia

Abstract

Efforts to enhance the commercialization of Malaysian Batik require a fresh perspective for greater effectiveness. Existing studies have predominantly concentrated on cost and supply-related issues. However, higher profits also significantly depend on bolstering the demand for the Batik. This article delves into the obstacles of the demand side by examining the challenges faced by Batik-based apparel small and medium enterprises (SMEs) in Malaysia. The research uses a qualitative approach, conducting in-depth interviews with 10 SMEs based in Kuala Lumpur-Selangor. The findings shed light on critical issues such as quality and design concerns of the Malaysian Batik, which compel SMEs to seek alternative fabric sources abroad. Furthermore, these SMEs also encounter issues such as inadequate information, limited feedback mechanisms and excessive bureaucratic red tape when seeking government assistance. The research contributes by emphasizing the urgent need to shift the policy discussion from supply-side to demand-side discussion to support the SMEs across the supply chain.