
Set up support scheme to help SMEs face US tariffs, says MCA
As a key pillar of the national economy, SMEs have made significant contributions to export-oriented industries. Without timely and effective support, Malaysia's overall trade performance and employment stability may be negatively affected.
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The Star
3 minutes ago
- The Star
M'sia has not granted exclusive rare earth rights to US, says minister
KUALA LUMPUR: Malaysia has not granted any exclusive rights to the United States concerning rare earth elements (REE) and the US has not made such a request, says Tengku Datuk Seri Zafrul Abdul Aziz ( pic ). The Investment, Trade and Industry Minister said that the US only requested not to be excluded from any arrangements Malaysia offers to other countries. 'It's simply not true that we gave the US any exclusive access. What they requested was to be treated on equal footing and not to be excluded from what we offer others,' he said. Tengku Zafrul said this in response to a query by Datuk Ku Abdul Rahman Ku Ismail (Perikatan–Kubang Pasu) in the Dewan Rakyat on Thursday (August 7). He also outlined Malaysia's broader strategy in dealing with its trade relations, which includes expanding access to new markets, strengthening competitiveness in key sectors, and addressing structural challenges across industries. Trade between Malaysia and the US currently accounts for about 15% of Malaysia's total global trade, he added. Meanwhile, Tengku Zafrul noted that the furniture and rubber glove industries face distinct challenges, including tariff concerns and non-tariff issues such as labour and compliance. In the furniture sector, he said two main issues are being addressed. The first is transhipment, where allegations have emerged that furniture made in China is being assembled in Malaysia and falsely labelled as 'Made in Malaysia'. 'To address this, the ministry has now taken over the issuance of certificates of origin. New guidelines are in place to ensure compliance, and this move is expected to enhance the competitiveness of our local furniture exporters,' he said. The second issue relates to tariffs. While Malaysia's main competitors—Vietnam and China—face similar tariff rates in certain export markets, Malaysian furniture exporters now see more certainty in their trade outlook. 'When we engaged with furniture industry players, they expressed that they are less worried about tariffs now. Their concerns are more about skilled labour, foreign worker policies, and other operational challenges. This is where the government's support is crucial,' Tengku Zafrul added. As for the rubber glove sector, he noted that the industry has faced pressure even before tariff measures were implemented. 'This industry has long faced stiff competition from China, Thailand, and Vietnam. So while tariffs do have an impact, the bigger issues are productivity and competitiveness,' he said. Tengku Zafrul said he has met with industry players to understand their concerns and reiterated the ministry's commitment to supporting Malaysian exporters through targeted strategies and engagement with international partners.


The Star
2 hours ago
- The Star
Malaysia's semiconductor exports still exempted from retaliatory tariffs, says Tengku Zafrul
KUALA LUMPUR: Malaysia's semiconductor exports to the United States remain exempt from retaliatory tariffs for now, says Tengku Datuk Seri Zafrul Abdul Aziz. The Investment, Trade and Industry Minister said the exemption remains in place at present, but it is subject to review and may be affected by future shifts in US trade policy. 'Currently, Malaysia's semiconductor exports to the US are not subjected to the retaliatory tariffs. However, this exemption is conditional and may change depending on the US government's evolving policies,' Tengku Zafrul told the Dewan Rakyat on Thursday (Aug 7). He was responding to Lim Guan Eng (PH–Bagan), who asked about reports that US president Donald Trump had announced plans to impose 100% tariffs on semiconductors imported from countries that do not produce — or do not plan to produce — chips within the US and only companies that have invested in or are building chip-manufacturing facilities in the US would reportedly be exempt. 'This is a significant move that will undoubtedly affect major semiconductor-exporting countries like Malaysia,' Tengku Zafrul said. He said that in April, the US Department of Commerce launched an investigation under Section 232 of its Trade Expansion Act to determine whether imports of semiconductors, chip-making equipment and related products pose a threat to US national security. 'Although the report was initially expected by the end of December, we've learnt that the timeline has been expedited. 'Preliminary findings from this investigation may soon form the basis for future policy decisions — including the possibility of higher tariffs,' he said Tengku Zafrul stressed that the US government has yet to officially announce the mechanism for implementing the tariffs. 'Based on current information, the exemptions may not be based on countries, but on companies that invest directly in the US, regardless of where they are headquartered,' he said. As such, the impact on Malaysia would depend largely on the structure and investment strategies of multinational firms operating locally. Tengku Zafrul said Malaysia's electrical and electronics (E&E) exports to the US totalled RM119bil in 2024 — roughly 20% of the country's total E&E exports. Of that, semiconductors alone made up RM60.6bil, or about 20% of Malaysia's total semiconductor exports. He noted that 68% of Malaysia's semiconductor exports to the US came from American companies based in Malaysia. 'These companies employ around 72,000 skilled Malaysian workers and are supported by approximately 7,200 local suppliers, most of which are SMEs,' he said. He said the government is also ramping up outreach and engagement with key local exporters and players in the semiconductor supply chain, while encouraging companies to expand to alternative markets. 'Ultimately, we are committed to monitoring this development closely and negotiating proactively. 'We want a clear understanding of what the US defines as 'semiconductors' in this context, so our industry can prepare appropriately,' he said.


New Straits Times
2 hours ago
- New Straits Times
Airbnb injects RM9.2bil into Malaysian economy in 2024, driving RM2.1bil in wages
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