KUALA LUMPUR: In light of the ongoing tariff disputes with the United States, Prime Minister Datuk Seri Anwar Ibrahim reassured the nation that the government is committed to supporting Malaysian businesses, particularly small and medium enterprises (SMEs) that are feeling the impact.
Speaking during a special Dewan Rakyat sitting on Monday (May 5), Anwar emphasized that the government’s priority is to assist businesses navigating the current global challenges. “We understand the strain on SMEs, and we are committed to ensuring they have the resources to weather this storm,” he said.
As part of these efforts, Anwar announced a RM1 billion increase in Government Guarantees under the Business Financing Guarantee Scheme (SJPP), aimed at helping affected SMEs secure loans from commercial banks. Additionally, the government will provide RM500 million in soft loan facilities via Development Finance Institutions (DFIs) to further support SME entrepreneurs.
While these immediate measures are in place, Anwar assured the public that the government will continue to monitor developments and provide targeted assistance where it’s needed most.
Expanding Horizons: A New Trade Strategy
In response to the global trade uncertainties, including the potential trade war with major partners, Anwar stressed the importance of diversifying Malaysia’s trading partnerships. “We must look beyond our traditional markets and explore new ones in Europe, the Middle East, Central Asia, and South America. Strengthening ties within Asean is also key,” he said.
To assist businesses in accessing these new markets, Anwar revealed an additional RM50 million allocation to Matrade, which will directly benefit SMEs seeking to expand internationally.
On the regional front, Malaysia will focus on key initiatives such as the ASEAN Power Grid and development projects to foster closer economic ties with neighboring countries. This includes projects at border regions like the Johor-Singapore Special Economic Zone (JS-SEZ) and the construction of critical infrastructure linking Malaysia and Thailand.
Securing Malaysia’s Global Position
Efforts to resolve reciprocal tariff issues are also underway, with strategic initiatives like the purchase of 30 Boeing aircraft by the Malaysia Aviation Group (MAG), which aims to strengthen Malaysia’s national tourism industry. These efforts are part of Malaysia’s broader strategy to expedite procurement and boost critical sectors.
On the trade front, Malaysia continues to push forward with agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), through which the country recently made its first tariff-free palm oil shipment to the UK. Moreover, the negotiations for the Malaysia-EFTA partnership are set to conclude soon, with a signing expected next month.
Anwar also highlighted the ongoing talks to enhance Malaysia’s trade agreements with China, Japan, and ASEAN member states, with the ASEAN-China Free Trade Agreement expected to see significant developments soon.
A Resilient Economy for a Strong Future
Despite these global challenges, Anwar expressed confidence in Malaysia’s economic resilience. “We’ve put in place the Ekonomi MADANI framework, which has bolstered our national resilience and positioned us to face global economic volatility head-on,” he said.
The Prime Minister shared optimistic news about Malaysia’s macroeconomic performance, with a forecasted GDP growth of 5.1% in 2024, up from 3.6% in 2023. Inflation remains under control, staying at 1.8% in 2024 compared to 2.5% the previous year. Meanwhile, the country’s unemployment rate continues to stay low at 3.3%, and a record RM378.5 billion in approved investments was reported last year.
Anwar concluded, “With the resilience of our domestic economy, we will navigate these challenges and continue to grow stronger, adapting to the ever-changing global landscape.”
