KUALA LUMPUR, July 9 — The Small and Medium Enterprises Association Malaysia (Samenta) has warned that the United States' 25 per cent tariff on Malaysian exports could deal a severe blow to small businesses.
Samenta president Datuk William Ng said many export-oriented SMEs, particularly in manufacturing, would face an “economic earthquake” when the tariffs take effect on August 1.
Ng acknowledged the government’s diplomatic efforts but called for urgent, on-the-ground support to help businesses survive the shock.
The group urged authorities to speed up the disbursement of previously announced aid, including RM1 billion in loan guarantees and RM500 million in soft loans.
“More importantly, these relief measures must be extended to domestic, non-exporting businesses. The anticipated tailwinds from subdued exports and weaker domestic demand will affect the services sector in equal intensity.
“In particular, we urge the government to pause all new and planned cost increases on SMEs, including the proposed rationalisation of petrol subsidy and incremental fees proposed by various agencies and local councils,” he said.
The association said any delay in intervention could erode Malaysia’s industrial base and jeopardise future recovery.
Labour shortages in food services, tourism and logistics must also be urgently addressed to support SMEs absorbing demand shifts.
“We need urgent and coordinated action to cushion the impact on impacted SMEs,” Ng said.
Yesterday, US President Donald Trump announced a 25 per cent tariff on all Malaysian products entering his country, effective August 1.
The Investment, Trade, and Industry Ministry responded by pledging to continue engaging the US in pursuit of a fair and balanced trade agreement following the surprise announcement.
