Business Today
22 July 2025
Putrajaya Keeps Cool As US Tariff Spat Unfolds
The federal government has opted against retaliatory measures in response to the United States’ recent imposition of countervailing tariffs on several trade partners, including Malaysia. Instead, it has initiated diplomatic discussions with Washington while implementing a series of domestic economic safeguards to shield local industries.
The Ministry of Investment, Trade and Industry (MITI), in a parliamentary reply to Bachok MP Mohd Syahir Che Sulaiman, said the National Geoeconomic Command Centre (NGCC) has been activated as a central response unit to coordinate strategies involving key federal agencies. Chaired by the Prime Minister and with MITI as secretariat, the NGCC monitors global trade developments, including tariff shocks and non-tariff barriers, to ensure Malaysia’s strategic industries remain resilient and competitive.
On May 5, 2025, a Special Parliamentary Session was held to specifically address the US tariff issue. In his opening address, the Prime Minister unveiled immediate incentives to assist small and medium enterprises (SMEs). This includes RM50 million allocated to MATRADE for expanding into new markets, RM500 million in soft loans through development financial institutions and an increased RM1 billion government guarantee under the Business Financing Guarantee Scheme (SJPP) to support SME exporters.
The Finance Ministry is also leading the GEAR-uP programme, a RM25 billion reform and activation initiative targeting high-growth and high-value sectors such as semiconductors and energy transition. It also aims to uplift marginalised communities and strengthen local talent pipelines.
To ensure no state is left behind, MITI confirmed that all investment promotion agencies (IPAs) nationwide are working closely with state governments to align support efforts. These include tailoring and channelling new incentives to businesses most affected by the tariff shift.
The prime minister had also updated all state leaders during the 146th Menteri Besar and Chief Ministers Meeting held on July 14, 2025. He assured that Malaysia would remain firm on matters of national sovereignty throughout ongoing trade agreement negotiations with the US.
The government is committed to keeping all stakeholders, including state authorities and industry players, well-informed and engaged. MITI further stressed that continued public sector transformation efforts will remain a priority to ensure a business-friendly environment and to reinforce Malaysia’s position as a strategic investment destination.
(Web Source: https://www.businesstoday.com.my/2025/07/22/putrajaya-keeps-cool-as-us-tariff-spat-unfolds/)