PETALING JAYA: The recently concluded reciprocal trade agreement between Malaysia and the United States represents significant progress for the Malaysian business community, said Small and Medium Enterprises Association Malaysia (Samenta) national president Datuk William Ng.
He said Samenta views it as generally positive for their SMEs.
Under the agreement, he noted, 1,711 Malaysian export product lines will enjoy tariff exemption when entering the US market and this will improve their price competitiveness while strengthening Malaysia’s position as an important player in global supply chains.
Ng said early beneficiaries are likely to include the electrical and electronics sector, machinery and industrial components, consumer goods and selected textiles, as well as processed food and value-added agricultural products.
SMEs supplying into these sectors will also benefit from the agreement, he emphasised.
“Our SMEs stand to gain significantly from this enhanced access to the US, especially vis-à-vis our regional competitors. The agreement opens space for niche products, specialised services, and branded consumer goods to reach the US market, which remains the world’s largest. More importantly, the agreement provides clarity and certainty on what our exporters can expect when trading with the US moving forward,” Ng said in a statement today.
However, he added, while the tariff concessions will create opportunity, their ability to tap into them will depend on the readiness of their SMEs.
Exporting to the US requires compliance with product safety, packaging and labelling requirements, fulfilment reliability, and after-sales support. SMEs must therefore be prepared to meet these expectations, even if they are not exporting directly to the US.
To ensure the benefits are widespread and inclusive, Samenta is prepared to work with the government to roll out support measures to address the gaps for their SMEs. This will include clear information on eligible HS codes, rules of origin and documentation, export financing and export risk insurance, capacity building on standards and certifications to meet US regulatory requirements, and business matching to connect their SMEs with US distributors, wholesalers, and online retail partners.
Importantly, Ng said, domestic cost pressures, including logistics, compliance and workers, continue to challenge SMEs, and must be addressed to ensure that their SMEs can compete effectively beyond price alone. “This will also help defend our domestic market against U.S. competitors who may have stronger brand recognition, capital access, and sophistication.”
The Malaysia-US Agreement on Reciprocal Trade will also enhance Malaysia’s attractiveness to US investors seeking to diversify supply chains into Southeast Asia.
“We can expect stronger interest in manufacturing, digital technology, and high-value industrial activities which may bring with it knowledge transfer and quality employment,” Ng said, adding that overall their SMEs must view this as a signal to upgrade their capabilities, embrace more stringent standards, and become export-ready.
The government and industry must work together to ensure that cost pressures are managed, and that no company is left behind, remarked Ng.
