PETALING JAYA: The reduction in US tariffs on Malaysian exports is a win for trade, but it would not ease the cost of living for consumers anytime soon, said the Federation of Malaysian Consumers Association (Fomca).
Its president Dr Saravanan Thambirajah pointed out that domestic policies, not foreign tariffs, are what shape household expenses.
He said the cut from 25% to 19% would boost export competitiveness and job stability but any relief for consumers would be indirect and gradual.
“The US tariff cut on Malaysian exports is mainly a trade move, with little direct effect on prices of domestic goods since it applies to exports, not imports,” he told theSun.
“As such, Malaysian consumers are unlikely to see an immediate drop in retail prices. But if it helps exporters maintain or grow market share, the resulting stability in jobs and incomes could indirectly support purchasing power over time.”
Saravanan said key cost-of-living pressures – food, housing, energy and transport – are driven by domestic policies, commodity prices and currency strength, not external tariffs.
“Reducing consumer vulnerability to global trade shocks requires a long-term resilience strategy,” he said, calling for trade diversification to avoid overdependence on a few major economies.
He urged greater investment in local food and energy production to ensure supply security and curb unjustified price hikes during global disruptions.
He added that targeted subsidies, temporary price controls and SME support are essential to keep domestic supply stable and shield households from external shocks.
“A strong domestic industrial base reduces reliance on volatile global markets and protects consumers from sudden tariff shifts.”
Saravanan added that sectors such as agriculture, manufacturing and technology must be strengthened to support job creation, income growth and innovation.
He said while the immediate gains from the tariff cut benefit exporters, the government could extend these gains by enforcing price monitoring, promoting export pricing transparency and incentivising reinvestment into local wages or pricing.
He also called for industry codes of conduct, public awareness campaigns and stronger market oversight to prevent excessive profit-taking by intermediaries.
“With oversight and cooperation, the economic benefits could gradually flow down to support households.”
He said a more resilient economy would also strengthen Malaysia’s hand in future trade negotiations.
