Ministry's US engagement vital to securing equitable trade for Malaysia: Acccim
The Associated Chinese Chambers of Commerce and Industry of Malaysia (Acccim) said this is given the strong bilateral trade relations between the countries.
The US is Malaysia's second largest trading partner and largest export destination, with total trade in 2024 rising nearly 30 per cent to RM324.9 billion (US$71.4 billion).
The chamber believes that the government will make its best effort to negotiate for a lower tariff before the revised 25 per cent tariff coming into effect on Aug 1.
Acccim said it stands firmly behind the government's principle of having an open discussion with the US in developing a well-considered and comprehensive as well as mutual benefits trade framework for both countries.
It also supports the government's position that any negotiations must prioritise the national interest.
This is particularly to safeguard the interests of small and medium enterprises (SMEs) and mitigate potential adverse effects on domestic industries and employment.
Acccim president Datuk Ng Yih Pyng, however, expressed concerns about the cumulative impact of multiple cost increases on businesses, especially amid a challenging global and domestic economic environment as well as tariffs policy uncertainty.
He said the potential impact of tariffs not only would dampen exports but also have negative spillover effects on domestic sectors.
"These tariffs headwind and global external uncertainties come at a time when companies are already facing higher operating costs due to the implementation of multiple cost measures.
"This adds to the financial strain on businesses, potentially impacting the ability to invest," he added.
Hence, the chamber urged the government to reconsider a reduction in the expanded sales and service tax rate to four per cent for the first two years of implementation, down from 6.0-8.0 per cent now.
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