US tariff reduction to boost Malaysia's exports, spur Sarawak's industrial growth, says councillor
KUCHING (Aug 1): The United States (US) government's decision to reduce import tariffs on selected Malaysian goods from 25 per cent to 19 per cent is expected to significantly boost the export-oriented manufacturing sector and spur Sarawak's efforts to attract foreign direct investment (FDI) and accelerate industrial development.
Kuching South City Council (MBKS) Councillor Eric Tay said the move would improve the competitiveness of Malaysian products in the US market and benefit local manufacturers and exporters.
'Based on available data, the tariff reduction primarily covers export categories such as electronics and electrical products, semiconductors, rubber-based goods, machinery, palm oil derivatives, furniture, scientific instruments, medical devices, and other light industrial products.
'These collectively represent over 55 per cent of Malaysia's total exports to the US,' he said in a statement.
Tay also pointed to Sarawak's ongoing development of industrial parks and infrastructure, saying the influx of foreign enterprises enabled by the tariff cut could boost talent development, technology transfer, and the state's broader industrial transformation.
At the federal level, he urged the government to complement this external advantage with targeted tax policies to maximise its economic impact.
He proposed raising personal income tax relief for lifestyle-related expenses, suggesting the current RM2,500 cap be increased to RM5,000 or RM10,000 to ease the burden on the middle class and encourage domestic consumption.
Tay also called for a higher tax relief cap on fitness and wellness expenses from RM1,000 to at least RM2,000 to promote healthier living.
While welcoming the tariff reduction, he stressed that meaningful economic gains would require internal reforms.
'We must capitalise on Southeast Asia's growing strategic importance and welcome more high-quality foreign investments into Sarawak.
'This US decision could be the strategic inflection point that brings more global manufacturers to our shores,' he said. export manufacturing sarawak economy US Tariffs
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