KUALA LUMPUR: Exporters – especially small and medium enterprises (SMEs) – affected by the ongoing US tariff issue will receive support from the government, says Prime Minister Datuk Seri Anwar Ibrahim.
“The government is committed to assisting businesses affected by current global developments.
“As an initial step, we have announced an increase in Government Guarantees by RM1bil under the Business Financing Guarantee Scheme to help affected SME exporters obtain loans from commercial banks,” he said during the special Dewan Rakyat sitting yesterday held to discuss Malaysia’s responses to US tariffs.
The government has also agreed to increase soft loan facilities by Development Finance Institutions (DFIs) amounting to RM500mil to support affected SME entrepreneurs, he added.
Anwar said Putrajaya will continue to monitor ongoing developments and remains committed to providing targeted assistance to directly affected SMEs.
Other measures include promoting regional cooperation and new markets.
“With our major trading partners potentially colliding in a trade war, it is important for Malaysia to diversify its trading footprint to new markets in Europe, the Middle East, Central Asia, and South America, among others, as well as strengthen our intraregional trade, especially with Asean member countries.”
Anwar was referring to increasing tariff tensions between China and the United States, which are Malaysia’s largest and third largest trading partners respectively.
To strengthen Asean integration and encourage economic activity between member countries, Malaysia – which is Asean Chair this year – will drive development projects across Asean, such as the Asean Power Grid, he added.
Anwar said Malaysia will continue to strengthen economic activities with its Asean neighbours in border regions, such as the Johor-Singapore Special Economic Zone as well as development projects for the southern Thailand border area.
The latter include constructing the second friendship bridge between Rantau Panjang in Kelantan and Sungai Golok in Narathiwat, Thailand, and a new road route connecting Customs facilities in Bukit Kayu Hitam, Kedah, with those in Sadao, Thailand.
Negotiations are also ongoing to resolve the reciprocal tariff issue, which includes pursuing strategic purchases or imports from the United States.
“For example, the Malaysia Aviation Group (MAG) placed an order for 30 Boeing aircraft, with an option for 30 more, which was finalised last year and recently signed.”
He said trade and investment processes would be further streamlined across key sectors such as agriculture, finance, and digital.
“For instance, a cloud framework agreement involving cloud service providers such as Google, Amazon, and Microsoft forms part of ongoing efforts to advance the public sector’s digital agenda,” he said.
Meanwhile, Malaysia is expanding trade in other markets. For instance, progress is being made in the free trade agreement (FTA) space, Anwar said.
“Following the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP), Malaysia made its first tariff-free shipment of sustainable palm oil to the United Kingdom last week,” he said.
The Malaysia-European Free Trade Association partnership agreement negotiations were completed in April and are expected to be signed next month.
FTA negotiations are also resuming with South Korea and the European Union.
In addition, efforts will also be intensified to strengthen relations at the Asean level with regions such as those represented by the Gulf Cooperation Council (GCC).
Negotiations on enhancing the Asean-China FTA is also expected to be finalised.
“With the resilience and confidence shown by our domestic economy, we will not easily succumb to external pressures and challenges,” he added.
