PETALING JAYA: The Federation of Malaysian Manufacturers (FMM) has called on the government to take swift, strategic action during the 90-day suspension of the US-imposed 24% tariff, warning that the temporary relief must not be mistaken for a pause in urgency.
FMM President Soh Thian Lai stressed that the volatility of US trade policy continues to pose a serious threat to long-term industrial planning and competitiveness. “This 90-day window is not a reprieve, but a critical opportunity for Malaysia to implement contingency measures that safeguard its industrial base,” he said.
With Investment, Trade and Industry Minister Tengku Zafrul Aziz scheduled to lead a trade mission to the US, Soh urged Putrajaya to leverage this engagement to secure sector-specific relief. He highlighted key sectors that require priority attention, including rubber products, industrial machinery, non-semiconductor E&E components, furniture, paint, garments, medical devices, and the electronics manufacturing services (EMS) segment—industries vital to both Malaysia’s manufacturing ecosystem and the resilience of US supply chains.
The appeal follows former US President Donald Trump’s announcement of a 90-day tariff pause—just one day after new tariffs were implemented—while maintaining a 10% blanket duty on most US imports and hiking tariffs on Chinese goods to 125%. This shift has heightened global concerns over trade unpredictability.
In light of rising external pressures, Soh also urged the Malaysian government to halt any upcoming domestic policies that may inflate manufacturing costs, including the planned expansion of the Sales and Service Tax (SST) effective May 1.
He further proposed the establishment of a National Supply Chain Council to coordinate labour strategies and support manufacturers through economic disruptions. A similar mechanism at the ASEAN level, he added, would help reinforce the region’s position as a reliable and adaptive global manufacturing hub.
Additionally, Soh called for enhanced customs surveillance and enforcement to manage potential trade diversions into Malaysia, which could lead to a spike in imports from other countries seeking to circumvent tariff barriers.
“These measures are essential to ensure Malaysia remains competitive and responsive in an increasingly protectionist global trade environment,” he said.
