PETALING JAYA: Trade challenges with the United States, especially under a second Trump presidency and proposed tariffs on Chinese and other foreign goods are among the top issues affecting Malaysian businesses, says a business group.
Newly elected president of the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) Datuk Ng Yih Pyng (pic) said other concerns include global trade dynamics brought about by the influence of BRICS nations on global trade and how Malaysia can navigate these changes and inflationary pressures from rising operational and living costs.
“Navigating the evolving global trade dynamics influenced by the BRICS nations and the upcoming Trump 2.0 era are among our strategic focuses in the next and coming years.
“Malaysia needs to remain vigilant and responsive to trade challenges, particularly given our trade surplus with the United States,” said Ng in an interview.
Also on the watchful list are ensuring continued government support for small and medium enterprises (SMEs), especially in key sectors like halal, high technology and tourism, and ongoing geopolitical tensions such as in Ukraine and the Middle East and their potential impact on global economic stability, he said.
As a small nation with numerous SMEs, Ng said Malaysia cannot afford to be complacent.
“We must act swiftly to safeguard our economic interests amid these global shifts.
“ACCCIM is committed to steering Malaysian businesses through these challenges,” he said.
BRICS is an inter-governmental organisation comprising nine countries: Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia and the United Arab Emirates.
Prime Minister Datuk Seri Anwar Ibrahim had on July 28 confirmed that Malaysia applied to join BRICS, which accounts for one-fifth of global trade.
With Malaysia poised as a key gateway for Chinese firms to expand outside of China and into the Asean market, Ng said the BRICS-Asean partnership holds significant potential.
“About 45% of the global population is in BRICS and Asean nations. “The partnership forms a vast market and bolsters global growth and economic resilience.
“BRICS contributes about 37% of global GDP. With new members like Iran and the UAE, BRICS will become a global commodity powerhouse, supplying nearly half of global oil production.”
Describing the implementation of proposed measures, projects and programmes under Budget 2025 as crucial, Ng said the timely execution of these initiatives is essential for sustaining domestic demand and supporting both private and public investment.
“The budget focuses on fiscal consolidation through revenue enhancement and expenditure optimisation, particularly in subsidy rationalisation.
“Savings from these efforts should be directed towards public transportation, infrastructure, healthcare, education and support for the elderly community.”
Ng also highlighted the importance of the quick disbursement of development funds and enhanced price surveillance to mitigate inflationary pressures from rising wages.
“There should be simplified application processes and transparency in supporting SMEs,” he added.
Citing challenges posed by proposed increases in minimum wage and mandatory contributions to the Employees Provident Fund by non-citizen workers, Ng said SMEs should be given sufficient lead time to adapt with a transition period for implementing new levies.
“We have numerous SMEs but we cannot rely solely on local consumption,” he said, advocating for active participation in international expos such as the recent China International Import Expo (CIIE) to showcase Malaysian products, open new markets, build connections and gain valuable insights.
“The recent participation of ACCCIM in the CIIE, led by a delegation of 250 members, underscored Malaysia’s commitment to expanding its presence in international markets.
“The event facilitated significant opportunities for Malaysian businesses to showcase high-quality products and explore collaborations in emerging sectors such as green technology and digital economy,” Ng said.
On Malaysia’s economic outlook, Ng envisioned sustained domestic growth and a competitive investment climate amid global uncertainties.
“We can do well when streamlined regulatory processes are in place with improved communication to provide clarity for investors and businesses,” he said.
