Reduced US Tariff A Strategic Win For Malaysia, Timely Boost For SME Competitiveness -- SAMENTA

KUALA LUMPUR, Aug 1 (Bernama) -- The reduction of the US tariff to 19 per cent imposed on Malaysian imports, although not as deep as expected, still provides relief from rising cost pressures faced by small and medium enterprises (SMEs), particularly those in manufacturing, furniture, textiles, and food exports.

The president of the Small and Medium Enterprises Association Malaysia (SAMENTA), Datuk William Ng, said the reduction offers a more level playing field and a much-needed boost to their competitiveness, “and if the tariff is sustained for the mid-term, restore confidence among exporters at a time when global demand remains volatile.”

"However, this is not the time to rest on our laurels. We urge the government to fast-track support for SMEs looking to re-enter or expand in the US market, including incentives for compliance with US standards and sustainability requirements and strengthen SME participation in trade promotion programmes and export missions. 

"We must also double down on our efforts to diversify our export destinations, while accelerating supply chain digitalisation and certification readiness, particularly for high-value and strategic sectors," Ng said in a statement today.

The US has imposed a reduced tariff of 19 per cent on Malaysian imports, effective Aug 1, 2025, reduced from 25 per cent previously.

Ng applauded the government’s success in securing the reduction of US tariffs on Malaysian goods to 19 per cent, describing it “significant breakthrough in our trade relations with the world’s largest economy.”

He said the positive development is a testament to the strong leadership of Prime Minister Datuk Seri Anwar Ibrahim and “the tireless efforts” of Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz. "Their unwavering commitment to defending Malaysia’s sovereignty while pragmatically engaging our global partners has paid off," he added.

-- BERNAMA