This case study investigates regulatory governance and its impact on Malay micro-entrepreneurs in Penang, Malaysia. Regulatory governance encompasses the policies, regulations, and institutional frameworks that govern economic activities, particularly in the context of small-scale entrepreneurship. Focusing on Penang, a dynamic economic hub in Malaysia with a significant Malay micro-enterprise sector, this study explores the regulatory environment and its implications for Malay entrepreneurs. Through qualitative analysis and interviews with micro-entrepreneurs, regulatory authorities, and other stakeholders, the study examines the challenges faced by Malay micro-entrepreneurs in navigating regulatory requirements, accessing resources, and sustaining their businesses. The findings shed light on the complexities of regulatory governance and its influence on entrepreneurship among the Malay community in Penang.