KUALA LUMPUR, July 9 – The Federation of Malaysian Manufacturers (FMM) has voiced serious concern over the US government’s plan to impose a 25% blanket tariff on all Malaysian exports beginning 1 August 2025, following an earlier 10% tariff.
FMM warns the latest move, despite ongoing negotiations under MITI’s National Geoeconomic Command Centre, could severely destabilise the country’s export performance, especially among manufacturers already under pressure from rising domestic costs including the recent SST expansion and energy tariff hikes.
FMM President Tan Sri Dato’ Soh Thian Lai called for urgent diplomatic escalation to seek deferral or exemption from the tariff hike, pointing out Malaysia’s integral role in global supply chains, particularly in electrical, electronics, and medical sectors.
He also stressed the need for immediate domestic support, including SST reforms with B2B exemptions, export promotion incentives, and Industry 4.0 adoption grants. The FMM further recommended establishing both national and ASEAN supply chain councils and expanding trade agreements with the EU, Africa, and Latin America to safeguard Malaysia’s long-term trade resilience.
Failure to act decisively, the FMM cautioned, could result in severe erosion of Malaysia’s market share, diversion of US sourcing to regional competitors like Vietnam, and long-term structural damage to the nation’s industrial base.
