US Reciprocal Tariff Will Impact Malaysian SMEs: SAMENTA
The Small and Medium Enterprises Association of Malaysia (SAMENTA) has expressed deep concerns over the newly imposed reciprocal tariffs by the United States, highlighting the challenges and potential opportunities they present for Malaysian SMEs.
According to SAMENTA’s National President, Datuk William Ng, these tariffs will significantly impact key export sectors such as electronics, palm oil derivatives, rubber-based products, and textiles.
“The higher tariffs will not only increase costs for both importers and exporters but will also reduce our competitiveness in the US and other markets,” said Ng. “This could have ripple effects on jobs and investments among SMEs.”
While acknowledging the challenges, SAMENTA believes that Malaysian SMEs can adapt by implementing strategic measures. “With the right strategies, we can mitigate risks and even benefit from shifts in global trade dynamics,” Ng said.
He noted that a period of uncertainty is expected as global economies recalibrate their strategies in response to the US tariffs. Additionally, any potential counter-tariffs from larger economies such as China could further influence the impact on Malaysian industries.
Domestically, the effects of the tariffs may vary, with goods imported from the US likely to see moderate price increases. However, Ng warned of a greater risk posed by potential dumping from affected economies, which could have more severe consequences for local SMEs than the direct tariffs themselves.
“SMEs must focus on diversifying their sources of raw materials and customer bases to ensure resilience. Strengthening supply chain strategies is a best practice, regardless of these trade disruptions,” he noted.
Beyond immediate responses, Ng stressed the importance of regional collaboration within ASEAN. “The urgency to lower non-tariff barriers within ASEAN has never been greater. In the past, we relied on larger economies like the US, China, and Europe to absorb our exports.
“Now, we must shift towards ‘prospering thy neighbor’ by reopening discussions on a single ASEAN market. A customs union could significantly enhance our position as both an exporting bloc and a regional market.”
Additionally, he called for a shift in mindset for Malaysian SMEs, urging them to transition from a “Made in Malaysia” to a “Made by Malaysia” approach. “This means leveraging production bases in ASEAN countries with lower costs while focusing on strengthening R&D and innovation domestically,” he explained.
SAMENTA remains committed to supporting SMEs in adapting to these global trade shifts. “We will work closely with the government and relevant stakeholders to ensure our businesses remain resilient and competitive,” assured Ng.
He encouraged SMEs to stay informed, adapt proactively, and seek new opportunities in the evolving global trade environment.
