KUALA LUMPUR, July 9 — The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) has urged the government to lower the expanded Sales and Service Tax (SST) rate to 4 per cent for two years, warning of mounting cost pressures on businesses ahead of a looming 25 per cent US tariff.
The business group said the proposed reduction, from the current 6 per cent to 8 per cent rate, would offer relief to companies already struggling with rising operating costs and global trade uncertainties.
ACCCIM president Datuk Ng Yih Pyng said the combination of tariffs, economic headwinds and multiple new cost measures had left many firms financially strained and less able to invest.
He warned that the incoming tariff, announced by US President Donald Trump and set to begin on August 1, could dampen Malaysian exports and trigger negative ripple effects across domestic sectors.
The United States is Malaysia’s largest export destination and second-largest trading partner, with bilateral trade jumping nearly 30 per cent to RM324.9 billion in 2024.
Ng voiced support for the Ministry of Investment, Trade and Industry’s ongoing efforts to secure a fair and balanced trade deal through continued engagement with Washington.
He said any negotiation must prioritise Malaysia’s national interest and protect small and medium-sized enterprises (SMEs), which form the backbone of the country’s industrial base.
ACCCIM’s remarks echoed earlier concerns raised by the Small and Medium Enterprises Association (Samenta), which described the tariff as an “economic earthquake” for export-oriented businesses.
Samenta had also called on the government to delay planned cost hikes, expedite SME financial aid, and address labour shortages in key sectors like food services, tourism and logistics.
Ng said ACCCIM stood firmly behind the government’s push for an open and mutually beneficial trade framework, but stressed that domestic policy adjustments were urgently needed to cushion the blow.
Source: https://www.malaymail.com/news/malaysia/2025/07/09/acccim-urges-temporary-sst-reduction-while-malaysia-faces-us-tariff-impact/183315