FMM president Soh Thian Lai said the unpredictability of the US’s trade policy posed significant risks to the long-term business planning and competitiveness of industry players.
Soh said the 90-day window must not be treated “as a reprieve from action” but a critical period to expedite contingency planning.
“FMM urges the government to take decisive steps during this 90-day window to protect Malaysia’s industrial base and long-term competitiveness,” he said in a statement.
Acknowledging an upcoming trade mission to the US led by investment, trade and industry minister Tengku Zafrul Aziz, Soh called on Putrajaya to push for sector-specific relief in negotiations with Washington.
“FMM recommends pursuing targeted, sector-specific relief, particularly for rubber products, industrial machinery, non-semiconductor electrical and electronic components, furniture, paint, medical devices, garments and the electronics manufacturing services sector.
“These industries are vital to both Malaysia’s manufacturing ecosystem and the resilience of the US supply chain,” he said.
Yesterday, Trump announced an immediate 90-day tariff pause for many countries, bringing relief to investors concerned about the global economic impact of US trade policies.
The pause came less than 24 hours after the tariffs kicked in. However, Trump has maintained the 10% blanket duty on almost all US imports and hiked tariffs on Chinese goods to 125%.
Soh repeated the call for Putrajaya to put on hold any policy that would raise the operating costs of manufacturers, including the expansion of the scope for the sales and service tax (SST) from May 1.
He also suggested the formation of a national supply chain council to coordinate workforce strategies and support manufacturers during economic disruptions, and for a similar council to be established at the Asean level, too.
“Such measures will be critical in preserving Asean’s role as a trusted and agile global production hub,” he said.
He also said customs surveillance and enforcement must be bolstered in preparation for trade diversion to Malaysia, as this could lead to an influx of imported goods from other nations.