By Adie Zulkifli – May 6, 2025 @ 6:09pm
ALOR STAR: The Kedah Malay Chamber of Commerce (DPMM) has praised the federal government’s swift response to mitigate US tariffs on Malaysian SMEs.
Welcoming what it described as a holistic and timely approach, the chamber said the six initiatives announced by Prime Minister Datuk Seri Anwar Ibrahim are vital in strengthening the resilience of local SMEs and protecting the livelihoods of over 11 million workers.
“We commend the Prime Minister’s announcement during the special parliamentary session, which outlined six key government measures to address the repercussions of the retaliatory tariffs imposed by the United States.
“These measures reflect the government’s clear concern for the challenges currently faced by Malaysia’s trade sector and its continued commitment to ensuring the resilience and sustainability of SMEs, which make up more than 97 per cent of all registered businesses in Malaysia and provide over 11 million jobs,” the chamber told the New Straits Times.
The chamber cautioned that in the short term, SMEs reliant on the US export market or its supply chains could face operational disruptions, rising costs, and business uncertainty.
During the special sitting of the Dewan Rakyat yesterday, Anwar announced the government’s decision to increase its guarantee under the Business Financing Guarantee Scheme by RM1 billion, to help SME exporters secure loans from commercial banks in the wake of the US tariffs.
He also revealed that an additional RM500 million would be channelled as soft loan financing through development financial institutions, forming part of the government’s six-pronged strategy to stabilise the economy and protect national interests in the short and medium term.
Last month, the Kedah DPMM expressed serious concerns about the significant impact of the wide-ranging US tariffs, and called on the government to devise a targeted plan to cushion the blow for local SME players.
Commenting further on Anwar’s latest announcement, the chamber also welcomed the RM50 million allocation to the Malaysia External Trade Development Corporation (Matrade), noting that it would provide SMEs with greater opportunities to explore new international markets through participation in trade exhibitions and business matching sessions.
“This move is crucial in reducing over-reliance on a single market such as the United States, while capitalising on emerging opportunities in rapidly expanding regional markets such as BRICS, the Gulf Cooperation Council (GCC), and Asean member states,” the chamber said.
Kedah DPMM also praised the government’s assurance to maintain Bumiputera policies and protect local vendors during international trade negotiations.
“This assurance reinforces confidence among local SMEs that their interests remain a government priority. It is essential to preserve a fair and inclusive business ecosystem, particularly for local enterprises still in their growth stages,” it added.