KUALA LUMPUR, May 5 — Lim Guan Eng has urged the government to suspend all proposals that could add financial pressure on Malaysian industries, in response to the economic challenges posed by the US tariffs.
The Bagan MP told Parliament that if left unsupported, the SME sector’s contribution could fall to just 35 per cent of GDP.
Among other things, Lim proposed freezing cost-increasing policies, including planned tax hikes, electricity tariff increases, and floating RON95 petrol prices.
“The government must suspend all proposals that add financial pressure on industry,” he said, citing measures such as e-invoicing, SST expansion and EPF contributions for foreign workers.
He said a cut in interest rates is also crucial now that inflation has eased, allowing economic growth to take priority.
To shield affected workers and industries, Lim urged the government to roll out an economic stimulus and push banks to provide relief to struggling borrowers.
“Besides government grants, the banking sector must be compelled to give easy loans or offer flexibility on existing ones,” he said.
He warned of rising complaints from local SMEs losing contracts to foreign firms that ignore local procurement and source only from their home countries.
Lim called for a mandatory 50 per cent local content rule for all investors to ensure Malaysian businesses benefit from new projects.
He also sounded the alarm over the risk of cheap imports flooding the market as trade routes shift, calling for stronger enforcement against dumping.
In a special parliamentary meeting today, Prime Minister Datuk Seri Anwar Ibrahim announced measures including a RM1 billion in financial guarantees to support local SMEs against the impact of US tariffs.
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.
