MALAYSIA's small and medium enterprises saw a 60% drop in its exports during the last quarter of 2008, reported Nanyang Siang Pau.

Quoting SMI Association of Malaysia president Chua Tiam Wee, the daily reported yesterday that the order book for the SMEs especially from the United States and Europe had shrunk by at least 50% during that period.

He warned that the situation would worsen in the coming months.

'The current production by the SME is for old orders. We will start to feel the effect of the slowdown by April,' he said.

Speculating that the country's economy during the second quarter of this year would worsen, Chua however said the situation would stabilise by year-end.

To reverse the situation, Chua hoped the Government would immediately put in motion its economic stimulus plans as it would help protect the SME from suffering further damage. -The Star/Asia News Network