KUCHING (July 9): The Small and Medium Enterprises Association of Malaysia (Samenta) has expressed deep concern over the United States government’s decision to impose a 25 per cent tariff on Malaysian exports, set to take effect in August.
In a statement, Samenta president Datuk William Ng warned that the move poses a serious threat to Malaysia’s trade competitiveness and industrial base, particularly to export-oriented small and medium enterprises (SMEs), which form the backbone of the manufacturing sector.
He described the tariff as an “economic earthquake” for SMEs heavily reliant on the US market.
“We acknowledge the government’s continued pursuit of a ‘balanced and mutually beneficial’ trade resolution with Washington, DC, but we urgently need coordinated action to cushion the impact on impacted SMEs,” Ng said.
As such, Samenta is urging the government to expedite the rollout of previously announced support initiatives, including a RM1 billion increase in Business Financing Guarantee Scheme (SJPP) loan guarantees, RM500 million in soft loans through development financial institutions, and a RM50 million boost to Malaysia External Trade Development Corp (Matrade).
“These initiatives must be delivered quickly and with minimal red-tape,” Ng emphasised.
“More importantly, these relief measures must be extended to domestic, non- exporting businesses, which will be equally affected by the anticipated tailwinds from subdued exports and weaker domestic demand.”
He further urged the government to halt all new and planned cost increases on SMEs, including the proposed rationalisation of petrol subsidy and incremental fees by various agencies and local councils.
Ng also highlighted persistent labour shortages, especially in service sectors like food and beverage, tourism, and logistics.
In view of this, Samenta is calling on the government to urgently review and ease restrictions on the hiring of foreign workers to help service-based SMEs absorb economic slack amid export headwinds.
“As Samenta has consistently pointed out, Malaysia’s headline economic growth often masks deeper structural weaknesses within the SME sector.
“The real paradox is our ability to register macro-level gains while most SMEs remain trapped in low-margin, low-scale operations, squeezed by rising costs, regulatory pressures, and now, geopolitical shocks,” said Ng.
He also noted the imposition of US tariffs is a stark reminder of the urgent need to recalibrate Malaysia’s economic model to prioritise the long-term viability and competitiveness of its 1.5 million SMEs, with the creative and service economy at the heart of it.
“Samenta remains fully committed to working hand-in-hand with the government to support all SMEs directly or indirectly affected by the tariff,” he added.
Source: https://www.theborneopost.com/2025/07/09/samenta-warns-us-tariff-threatens-malaysias-smes-trade-competitiveness/