PETALING JAYA: The National Chamber of Commerce and Industry of Malaysia (NCCIM) has urged the government to take proactive measures to mitigate the impact on Malaysian industries following the US tariff announcement on April 2.
The NCCIM outlined a strategic framework to counteract the challenges posed by these tariffs and enhance Malaysia’s trade resilience, especially in ensuring an uneven trade balance between the two countries.
Given Malaysia’s deep trade ties with the United States, NCCIM underscores the importance of trade diversification and market expansion to reduce reliance on any single market.
The chamber recommends leveraging Asean free trade agreements (FTA), the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to expand Malaysia’s export footprint, particularly in China, India the Middle East, and Africa.
In a statement, NCCIM president Datuk Seri N Gobalakrishnan said to protect key industries such as automotive, electronics, and palm oil, NCCIM calls for diplomatic negotiations with US trade representatives to seek tariff exemptions.
“The chamber also urges the government to explore a Malaysia-US bilateral trade agreement that ensures long-term
trade stability and strengthens bilateral economic cooperation,“ he said.
Further, NCCIM advocates for tax incentives, subsidies, and financial assistance to help Malaysian businesses cope with potential tariff burdens.
The chamber highlights the need for upskilling and automation initiatives to enhance industry competitiveness through Malaysia’s adoption of Industry 4.0 and strengthening local supply chains, reducing reliance on foreign imports and bolstering domestic industries.
It also calls for enhanced export promotion via improved digital trade infrastructure and streamlined customs
processes.
Recognising the broader economic implications of rising protectionism, NCCIM urges the Ministry of International Trade and Industry to strengthen Malaysia’s trade diplomacy efforts through active engagement with the World Trade Organization, Asia-Pacific Economic Cooperation forum, Asean and key global trade allies such as the European Union, Japan and Canada.
Additionally, the chamber emphasised the importance of investing in trade infrastructure, logistics modernisation, and establishing a Tariff Impact Mitigation Fund to support affected businesses.
“Malaysia and the US have a diversified trade relationship, and we strongly feel that such tariff increases should be done consultatively and progressively. NCCIM is in the view that the prime minister of Malaysia’s office can negotiate
to reduce this tariff increase.
“NCCIM remains steadfast in ensuring that Malaysian businesses can navigate the evolving global trade landscape with resilience,“ Gobalakrishnan said.
Gobalakrishnan says NCCIM remains steadfast in ensuring that Malaysian businesses can navigate the evolving global trade landscape with resilience.
