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KUALA LUMPUR: Malaysian small and medium enterprises (SMEs) need to diversify their sources of raw materials and customer bases to mitigate supply chain risks, said Datuk William Ng, national president of the Small and Medium Enterprises Association of Malaysia (Samenta).
He said that this practice is beneficial regardless of the 25 per cent tariff imposed by the US on Malaysian goods.
Ng also urged local businesses to shift from 'Made in Malaysia' to 'Made by Malaysia,' where production focuses on economies within Asean that have lower production costs, while reinforcing research and development domestically.
On an Asean level, he said the urgency to lower non-tariff barriers is greater than ever.
"In the past, we could rely on larger economies such as the US, China, and Europe to absorb most of our exports. But today, it is very clear that the future must be about 'prospering thy neighbour.'
"The discussion on creating a single Asean market must be reopened immediately, with the aim of establishing some semblance of a customs union that can benefit us both as an exporting bloc and as a large regional market," he added.
Ng pointed out that the US tariffs could significantly affect Malaysian exports, particularly in electronics, palm oil derivatives, rubber-based products, and textiles and garments, as these sectors are among the key contributors to our trade with the US.
While the introduction of tariffs affects Malaysian exports, he said the right strategies could help Malaysian SMEs adapt to and even benefit from shifting global trade dynamics.
He noted that there might be a brief period of uncertainty as economies across the region, along with other affected economies, readjust their strategies to counter or mitigate the impact of these series of tariffs.
Domestically, he said the impact will range from minimal to moderate, with goods imported from the US likely to cost more in the mid-term.
"What we really should be looking out for is potential dumping from affected economies, especially the large manufacturing hubs. This will have a more significant repercussion on our SMEs than the direct tariffs on exports to the US," he added.
Ng said Samenta will work closely with the government and relevant stakeholders to ensure that Malaysian businesses remain resilient and globally competitive.
Source: m https://www.nst.com.my/business/corporate/2025/04/1196871/malaysian-smes-urged-diversify-amid-us-tariff-challenges