U.S. tariff negotiations showing positive progress early on, confirms Anwar (Malaysia)
Going the Distance: Malaysia's RM1 Billion Lifeline for SMEs amid US Tariff Turmoil
KUALA LUMPUR, May 5 - Ready to roll with the punches, Malaysia is stepping up to the plate with a RM1 billion financial lifeline for its small and medium-sized enterprises (SMEs) to help weather the storm of US tariffs. Prime Minister Datuk Seri Anwar Ibrahim made the announcement today at a special parliamentary sitting focusing on US tariffs.
"We're doubling down," Anwar explained, adding that an additional RM500 million will be earmarked for soft financing through financial development institutions. This emergency injection is designed to offer a cushion to SMEs as they negotiate the challenging terrain of higher tariffs.
The US is a formidable trading partner for Malaysia, accounting for 11% of the country's RM325 billion in trade last year. Such trade includes key sectors like energy, chemicals, food, logistics, and high technology. The PM pointed out that Malaysia's investments in US bonds and capital markets reached RM182.7 billion, or US$43.5 billion.
Asia's startup hub is also expanding its economic horizons, focusing on new markets in Europe, the Middle East, Central Asia, and South America. Matrade will receive an additional RM50 million to boost these initiatives. This includes progressing projects like the Johor-Singapore Special Economic Zone (JS-SEZ) and others.
The National Geoeconomics Coordination Centre (NGCC) will keep a close watch on essential economic indicators such as manufacturing orders, exports, retail sales, layoffs, and loan growth. This will help the government to roll out data-driven, timely, and effective policy responses.
Donald Trump's "Liberation Day" trade policy, announced in April 2025, imposed a 24% "reciprocal" tariff on Malaysian imports to the United States. This has been temporarily reduced to 10% until 8 July 2025. Some non-exempt exports are also subject to a baseline 10% tariff. Firms in key sectors like electronics and manufactured goods may feel the brunt of these tariffs, but specific items are yet to be specified.
To stay ahead of the game, it's crucial to keep tabs on the evolution of this situation. Here are some articles you might find helpful:
- Sectors under Scrutiny: Which Malaysian Exports Could See Significant Tariff Hikes?
- Why Malaysia Engages, Rather than Engages in a WTO Tussle with Trump Despite Tariff Disparities
- The Prime Minister, Datuk Seri Anwar Ibrahim, announced a RM1 billion financial lifeline for Malaysia's SMEs to help them deal with the US tariffs in Kuala Lumpur.
- Additionally, RM500 million will be allocated for soft financing through financial development institutions to provide a cushion for SMEs.
- Malaysia's key trading sectors with the US include energy, chemicals, food, logistics, and high technology, with the country's trade with the US accounting for 11% of its total trade last year.
- In response to Donald Trump's "Liberation Day" trade policy, a 10% tariff was imposed on Malaysian imports to the US, with some non-exempt exports also subject to a baseline 10% tariff.
- The National Geoeconomics Coordination Centre (NGCC) is monitoring essential economic indicators to help the government roll out effective policy responses.
- The government is also focusing on new markets in Europe, the Middle East, Central Asia, and South America to expand Malaysia's economic horizons.
- Matrade will receive an additional RM50 million to boost these initiatives, including projects like the Johor-Singapore Special Economic Zone (JS-SEZ).
- It's important to keep up with the latest news and trends on these US tariffs, including articles such as "Sectors under Scrutiny: Which Malaysian Exports Could See Significant Tariff Hikes?" and "Why Malaysia Engages, Rather than Engages in a WTO Tussle with Trump Despite Tariff Disparities."
