US Tariff Reduction a Strategic Win for Malaysia, Timely Boost for SMEs — SAMENTA

KUALA LUMPUR, 1 August 2025 — The Small and Medium Enterprises Association of Malaysia (SAMENTA) has hailed the recent decision by the United States to reduce tariffs on Malaysian exports from 25% to 19% as a strategic breakthrough, calling it a timely boost for the country’s small and medium enterprises (SMEs), particularly in key export sectors.

In a statement, SAMENTA described the development as a testament to the strong leadership of Prime Minister Dato’ Seri Anwar Ibrahim and the tireless efforts of Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of Investment, Trade and Industry (MITI), in defending Malaysia’s sovereign interests while pragmatically advancing its trade partnerships.

“While the tariff reduction may not be as deep as some in the industry had hoped, it is nonetheless economically meaningful,” said Datuk William Ng, National President of SAMENTA.

“It closes the previous tariff gap between Malaysia and several regional neighbours, improving our competitiveness in the US market.”

SAMENTA noted that the reduced tariff would provide immediate relief and new opportunities for Malaysian SMEs involved in manufacturing, furniture, textiles, and food exports.

With global demand remaining uncertain, this development is expected to cushion rising cost pressures and help restore exporter confidence—particularly if the new rate is sustained over the mid-term.

However, the association warned against complacency. It urged the government to fast-track support measures for SMEs re-entering or expanding in the US market, including assistance with meeting American regulatory and sustainability standards, and increased participation in trade promotion programmes and export missions.

Datuk William Ng further stressed the need to diversify Malaysia’s export destinations and accelerate digitalisation across the supply chain, especially for high-value and strategic sectors.

He also called on SMEs to seize the opportunity to move up the value chain by focusing on innovation, quality, and branding.

“This tariff reduction is a recognition of Malaysia’s status as a trusted and value-added trading partner,” he said.

“Now is the time for a whole-of-economy effort to turn this momentum into real, sustained growth — not just for our businesses, but for the nation as a whole.”