The government has pledged to support small and medium enterprises (SMEs) affected by US tariffs.
Prime Minister Datuk Seri Anwar Ibrahim, during a special Dewan Rakyat sitting today, said the government remains committed to helping businesses impacted by current global developments, particularly those affected by the ongoing tariff issue with the United States.
“As an initial step, we have announced an increase in government guarantees by RM1 billion under the Business Financing Guarantee Scheme to help affected SME exporters obtain loans from commercial banks,” Anwar said.
He added that the government had also agreed to increase soft loan facilities provided by development finance institutions by RM500 million to support SME entrepreneurs affected by the situation.
“We will continue to monitor the situation and provide targeted assistance to directly affected SMEs, including promoting regional cooperation and identifying new markets,” he said.
Anwar also told the Dewan Rakyat that discussions with the US were ongoing, with the possibility of reducing the tariffs. However, the talks were still at an early stage and no agreement had been reached.
“The US government has agreed to continue further negotiations with Malaysia, and there is a possibility of reducing the imposed reciprocal tariffs,” he said.
Anwar added that the government would continue to develop strategies to maintain economic stability and protect national interests in the short and medium terms, given the current global challenges.
Later in the afternoon, the Investment, Trade and Industry Ministry (MITI) announced that it will be the sole issuer of all Non-Preferential Certificates of Origin (NPCO) for shipments to the US starting tomorrow.
This means that the issuance of NPCOs to the US market by business councils, chambers, or associations previously appointed by the ministry will cease immediately. The move is in accordance with NPCO issuance guidelines established by the ministry.
MITI said the decision was to address concerns over potential transhipment from certain countries to the US market through Malaysia’s entry and exit points.
The ministry stressed that any attempt to circumvent tariffs — whether by misrepresenting the value or origin of goods — is a serious offence. It also said it will step up audits on NPCO applicants, investigate potential transhipment offences, and work closely with the Royal Malaysian Customs Department to take necessary enforcement actions.
