KUALA LUMPUR, Oct 28 — The recently concluded reciprocal trade agreement between Malaysia and the United States (US) represents significant progress for the business community, especially for small and medium enterprises (SMEs), said the Small and Medium Enterprises Association (Samenta).

The association said early beneficiaries are likely to include the electrical and electronics sector, machinery and industrial components, consumer goods and selected textiles, as well as processed food and value-added agricultural products.

SMEs supplying into these sectors would also benefit from the deal, it said.

“Our SMEs stand to gain significantly from this enhanced access to the US, especially vis-a-vis our regional competitors.

“The agreement opens space for niche products, specialised services, and branded consumer goods to reach the US market, which remains the world’s largest,” said its national president Datuk William Ng.

He said the agreement provides clarity and certainty on what Malaysian exporters could expect when trading with the US moving forward.

However, Ng said that the ability to capitalise on these tariff concessions would depend on SMEs’ readiness to meet product safety, packaging and labelling requirements, as well as fulfilment reliability and after-sales support.

“To ensure the benefits are widespread and inclusive, Samenta is prepared to work with the government to roll out support measures to address the gaps for our SMEs,” he said.

These include clear information on eligible HS codes, rules of origin and documentation, export financing, capacity building on standards and certifications, and business matching with US partners.

Ng also said that domestic cost pressures, including logistics, compliance and workers, must be addressed to ensure Malaysian SMEs can compete effectively beyond price alone.

“The Malaysia-US Agreement on Reciprocal Trade will also enhance Malaysia’s attractiveness to US investors seeking to diversify supply chains into Southeast Asia,” he said.

Ng said that overall, SMEs must view the agreement as a signal to upgrade capabilities, embrace higher standards, and become export-ready, with the government and industry working together to manage costs and ensure that no company is left behind.

Under the agreement, 1,711 Malaysian export product lines would enjoy tariff exemption when entering the US market, improving price competitiveness and strengthening Malaysia’s position as an important player in global supply chains. — Bernama