KUALA LUMPUR, May 5 — Malaysia will launch a RM1 billion financial lifeline to support its small and medium-sized enterprises (SMEs) against the impact of US tariffs, Prime Minister Datuk Seri Anwar Ibrahim announced today.
Speaking at the special parliamentary sitting on US tariffs, Anwar said further measures includes an additional RM500 million in soft financing through financial development institutions.
“This injection is to help the SME’s cushion the impact of the US tariffs and will be closely monitored, particularly the involvement of the SME companies,” he said.
The PM said the mitigation was necessary as the US is among Malaysia’s largest trading partners accounting for 11 per cent of the country’s RM325 billion in trade last year.
Malaysia’s trade with the US primarily involve sectors such as energy, chemicals, food, logistics and high technology.
“In addition, Malaysia’s investments in US bonds and capital markets reached RM182.7 billion or US$43.5 billion,” he added.
Anwar said Malaysia is also intensifying its search for new markets in Europe, the Middle East, Central Asia, and South America, while strengthening Asean integration. Matrade will receive an additional RM50 million for this purpose.
These include expediting projects such as the Johor-Singapore Special Economic Zone (JS-SEZ) and others.
The PM said the National Geoeconomics Coordination Centre (NGCC) will also closely monitor key economic indicators such as manufacturing orders, exports, retail sales, layoffs, and loan growth.
Anwar said this will allow the government to introduce policy responses that are data driven, effective, and appropriate.
In April 2025, the Trump administration imposed a 24 per cent “reciprocal” tariff on Malaysian imports to the United States, as part of a broader “Liberation Day” trade policy that also included a universal 10 per cent tariff on most imports from other countries.
This is currently on a 90-day pause, with the universal rate being imposed.
