Govt urged to lower SST for now due to looming US tariffs
Its presindent Datuk Ng Yih Pyng said tariff headwinds and global uncertainties were hitting at a time when businesses were already grappling with rising operating costs stemming from multiple government-imposed cost measures.
'This adds to the financial strain on businesses and could impact their ability to sustain operations and invest in future growth,' he said in a statement on Tuesday (July 9).
He again urged the government to reconsider ACCCIM's proposal to reduce the expanded Sales and Service Tax (SST) rate from the current 6%–8% to 4% for the first two years of implementation.
Ng also expressed concern over the cumulative impact of repeated cost increases, especially as businesses navigate an increasingly challenging global and domestic economic landscape, coupled with uncertainty surrounding US tariff policies.
At the same time, the chamber welcomed the Investment, Trade and Industry Ministry's commitment to engage with the United States to secure a fair and balanced trade deal for Malaysian exporters.
'This commitment is vital, given the strong bilateral trade ties between both countries. The United States is Malaysia's second-largest trading partner and its largest export destination. In 2024, total trade surged by nearly 30% to RM324.9bil (US$71.4bil),' Ng said.
He said the chamber believed the government would do its utmost to negotiate a reduction in the revised 25% tariff scheduled to take effect on Aug 1.
'ACCCIM fully supports the government's principle of maintaining open dialogue with the United States in working towards a well-considered, comprehensive and mutually beneficial trade framework.'
Ng stressed that any negotiations must prioritise the national interest, particularly in protecting the interests of small and medium-sized enterprises (SMEs) and mitigating any adverse effects on local industries and employment.
Malaysia is set to face a 25% tariff imposed by the United States starting Aug 1.
This represents a one-percentage-point increase from the previous 24% rate, which had been temporarily suspended for 90 days.
However, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz has stated that there was still time to negotiate with the United States before the revised tariff comes into force.
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