ACCIM Sees Cordial Talks As Key To Fair, Balanced Malaysia-US Trade Deal
KUALA LUMPUR, May 5 (Bernama) -- The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) believes that continued cordial negotiations between the Malaysian and United States (US) governments can lead to a fair and balanced trade deal.
ACCCIM president Datuk Ng Yih Pyng said in a statement today that such a deal would deepen Malaysia-US bilateral trade and investment through enhanced market access and reduced tariffs.
“There is no reason to inflict severe economic damage on businesses from both countries, particularly those sectors and industries that have significant market presence in the US and vice versa,” he said.
Ng also said the association suggested that the government increase the amount of Market Development Grant (MDG), which currently stands at RM5,000 for international fairs or exhibitions held in Malaysia and RM25,000 for those held overseas.
He added that ACCCIM supports efforts to engage in more free trade agreements (FTAs), including resuming the FTA negotiations with South Korea and the European Union (EU).
Ng said that with many countries now facing an extraordinary wall of tariffs, many micro, small and medium enterprises (MSMEs) have expressed concern that more products from Malaysia’s trading partners may be dumped into the local market, weakening domestic industries.
“The flooding of foreign goods would nonetheless increase competitive pressure on domestic MSMEs, particularly in sectors such as trading, retailing, furniture, iron and steel, consumer durables, and e-commerce, where margins are already tight,” he said.
Ng added that the association has proposed a multifaceted approach to curbing “rebadged” products. Among the suggestions are enhanced customs inspections and enforcement using risk-based profiling and targeted checks, focusing on sectors or products with high tariff differentials.
The approach includes mandating stricter verification and compliance of the Certificate of Origin and Rules of Origin to prevent “renegade product” activities at ports.
He requested that ample time of at least six months be given to businesses to prepare for the implementation of the sales and service tax expansion at a later date.
“We urge the government to put on hold any changes in domestic policies that would add cost pressures on businesses and dampen both business and consumer sentiment.
“These include the rationalisation of RON95 fuel subsidies, a proposed hike in electricity tariffs, and the introduction of a multi-tiered levy,” he said.
-- BERNAMA