KUALA LUMPUR: The reduction of US tariffs on Malaysian imports to 19% provides critical relief for small and medium enterprises (SMEs) grappling with rising costs, particularly in manufacturing, furniture, textiles, and food exports.
While the cut falls short of expectations, it marks a strategic win for trade competitiveness, according to the Small and Medium Enterprises Association Malaysia (SAMENTA).
SAMENTA president Datuk William Ng called the move a “significant breakthrough” in Malaysia’s trade relations with the US, the world’s largest economy.
“This offers a more level playing field and restores exporter confidence amid volatile global demand,“ he said. The revised tariff, effective August 1, 2025, replaces the previous 25% rate.
Ng urged the government to accelerate support for SMEs targeting the US market, including incentives for compliance with US standards and sustainability requirements.
“We must also diversify export destinations and fast-track digitalisation in supply chains, especially for high-value sectors,“ he added.
He credited Prime Minister Datuk Seri Anwar Ibrahim and Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz for their “tireless efforts” in securing the tariff reduction.
“Their pragmatic engagement with global partners has paid off,“ Ng noted. - Bernama
