US tariffs pose major risk to export-oriented SMEs, says Samenta
Samenta said the sweeping tariff measure could have a severe impact on export-oriented small and medium enterprises (SMEs), which form the backbone of the country's manufacturing ecosystem.
Its national president Datuk William Ng said for SMEs which are significantly exposed to the US market, this is the equivalent of an economic earthquake.
"We acknowledge the government's continued pursuit of a balanced and mutually beneficial trade resolution with Washington, but we need urgent and coordinated action to cushion the impact on impacted SMEs," he said in a statement.
Ng also called for the immediate rollout of targeted relief measures from the government.
These include the RM1 billion increase in Syarikat Jaminan Pembiayaan Perniagaan guarantees, RM500 million in soft loans via development financial institutions, and the RM50 million boost to Malaysia External Trade Development Corp.
The association further urged the government to extend these relief measures to domestic, non-exporting SMEs, noting that weaker exports would drag down domestic demand, particularly in the services sector.
"In particular, we urge the government to pause all new and planned cost increases on SMEs, including the proposed rationalisation of petrol subsidy and incremental fees proposed by various agencies and local councils.
"As labour shortages remain one of the most pressing challenges, particularly in the services sector, we urge the government to urgently review and ease restrictions on the hiring of foreign workers in sectors such as food services, tourism and logistics," Ng added.
On a broader level, Ng said the tariff move underscores longstanding structural fragilities in the SME sector.
Despite strong headline gross domestic product numbers, he noted that many SMEs remain stuck in low-margin, small-scale operations and are vulnerable to rising costs and regulatory pressures.
"The imposition of US tariffs is a stark reminder of the urgent need to recalibrate our economic model. We must prioritise the long-term viability and competitiveness of our 1.5 million SMEs, particularly in the creative and services economy.
"Samenta remains fully committed to working hand-in-hand with the government to support all SMEs directly or indirectly affected by the tariff," said Ng.
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