Christina Tee, president of the Malaysia International Chamber of Commerce and Industry said companies in the manufacturing and export-driven sectors were particularly worried.
“While tariff reliefs and cost-mitigation efforts are noted, SMEs (small and medium size enterprises) still face high imported input costs.
“The government could introduce temporary tariff-drawback schemes or raw material support funds to buffer supply chain disruptions,” she said.
In the long term, strengthening local sourcing and encouraging industrial clustering would reduce the exposure of SMEs to global tariff volatility.
Tee said she supported the rollout of e-invoicing and self-assessment for stamp duty, but called for clearer guidance and incentives to help SMEs transition smoothly.
Small and Medium Enterprise Association (Samenta) chairman William Ng said it was crucial to expand export and market support, given the “fluid tariff environment”.
He said regional expansion could cushion SMEs against tariff shocks.
He welcomed the budget’s emphasis on export capacity and regional integration, citing the RM5 billion SJPP export guarantee, RM60 million in Malaysia External Trade Development Corporation (Matrade) market grants, and the expansion of the Malaysia Co-Investment Fund to Asean as timely moves to help SMEs strengthen their regional participation and mitigate tariff impacts.
Ng said the budget addressed many long-standing SME priorities, particularly regarding access to financing, innovation support, and regional trade integration.
“We’re pleased to see the government expand credit guarantees to RM30 billion from RM20 billion previously, and commit to RM50 billion in total SME financing support. This directly addresses one of the top concerns among SMEs,” he told FMT.
Ng said the focus on digitalisation, AI adoption, and automation aligned with SMEs’ call for practical support to boost productivity.
PwC Malaysia’s private business leader Fung Mei Lin said the key challenge ahead would be improving SMEs’ operational readiness for compliance with international standards and accessing the financing and guarantees announced in the budget.
“The ability of SMEs to apply for and qualify for these schemes will be critical – and something they’ll need to build capacity for,” she said.