KUALA LUMPUR: The Small and Medium Enterprises Association of Malaysia (SAMENTA) urged local businesses, particularly small and medium enterprises (SMEs), not to be over reliant on a single market in light of the United States’ (US) 90-day pause on reciprocal tariff while the 10 per cent baseline rate remains in place.
In a statement today, SAMENTA president Datuk William Ng said businesses, especially SMEs, must remain vigilant and competitive even as "this temporary relief provides breathing space for Malaysian exporters.”
"We urge all stakeholders to remain calm, as panic or knee-jerk reactions could cause more harm than good, especially for SMEs already navigating a volatile global landscape.
"Any negative impact on consumer confidence would unnecessarily undermine our growth trajectory, bearing in mind that SMEs only account for 13 per cent of our exports,” he said.
Ng added that the majority of Malaysia’s SMEs are in the services sector and are highly susceptible to changes in consumer confidence and domestic spending.
Nonetheless, this latest US move signals that there is still room for negotiation despite its protectionist policies.
He urged SMEs to prepare for a potential tariff reinstatement after the three-month reprieve and to reassess their supply chains, cost structures, and market diversification.
He said businesses must expand their customer base regionally, develop partnerships beyond traditional export destinations and move away from over-dependence on any single market.
"The future lies in 'Made by Malaysia.' Focus on value creation through innovation, branding, and smart production, whether locally or in more cost-effective ASEAN locations,” he said.
The association urged the government to intensify efforts to help SMEs venture into ASEAN and high-potential markets, reduce red tape and non-tariff barriers across ASEAN, provide financing support, and promote research and development and technology adoption.
Established in 1986, SAMENTA has more than 5,500 members natoinwide. - Bernama
