Malaysian SMEs Urged To Diversify, Leverage ASEAN Countries To Navigate Tariff Challenges
KUALA LUMPUR, April 3 (Bernama) -- Malaysian small and medium enterprises (SMEs) must take steps to diversify both their sources of raw materials and their customer base, ensuring that supply chain risks are mitigated, according to Small and Medium Enterprises Association of Malaysia (Samenta) national president William Ng.
This is a good practice regardless of the impact of the just-announced 24 per cent United States (US) reciprocal tariff on Malaysian goods, he said in a statement on Thursday.
Samenta also urged local businesses to shift their approach from “Made in Malaysia” to “Made by Malaysia”, leveraging ASEAN countries that have lower production costs while reinforcing their research and development domestically.
Ng called for the immediate reopening of discussions on forming a single ASEAN market to lower non-tariff barriers, creating a kind of “custom union” that can benefit the region as an exporting bloc and as a large regional market.
“On an ASEAN level, the urgency to lower non-tariff barriers is greater than ever. In the past, we can rely on larger economies such as the US, China and Europe to take up most of our exports. But today, it is very clear that the future must be about ‘prospering thy neighbour’,” he said.
Despite the challenges posed by the tariff introduction, Ng said that with the right strategies, Malaysian SMEs can adapt and even benefit from shifting global trade dynamics.
He warned that businesses must also be vigilant about potential dumping from affected economies, as it would have “a higher repercussion to our SMEs than the direct tariffs on exports to the US.”
Noting that the US tariffs could significantly affect Malaysian exports, particularly in electronics, palm oil derivatives, rubber-based products and textiles and garments, Ng said Samenta will work closely with the government and other stakeholders to ensure Malaysian businesses remain resilient.
Meanwhile, the Malaysian Rubber Glove Manufacturers Association (Margma) echoed the concern that the tariff could disrupt the country’s glove industry, a key supplier of medical-grade gloves to the US.
“The reciprocal tariff of 24 per cent imposed by the US on Malaysia will undoubtedly impact various industries, including the glove sector.
“While we are aligned with Ministry of Investment, Trade and Industry in our position to negotiate rather than retaliate, we hope both nations will uphold the spirit of free and fair trade to ensure jobs and economic growth for both countries,” said Margma president Oon Kim Hung said in a separate statement.
Oon urged the Malaysian government to consider emergency support measures to ensure that the rubber glove industry will remain robust, similar to steps being taken by Japan and South Korea to support businesses hit by the higher tariffs.
He also expressed hope that the US will exempt Malaysia’s rubber gloves — critical to global healthcare — from tariffs, like the exemption accorded to India’s pharmaceutical goods.
-- BERNAMA
