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THE government should urgently consider postponing tax payments and establishing a special relief fund in the form of matching grants or financial loans to support certain sectors of industry.
Datuk Seri Hamzah Zainudin, who is Bersatu secretary-general, urged that such measures could prevent businesses from collapsing or having to reduce their workforce in response to the global and domestic challenges arising from the recent tariff hike imposed by the United States.
In a statement on Saturday, Hamzah stressed that the government has the capacity to offer more appealing export incentives to industry players.
He suggested these measures would enable businesses to create new opportunities and capabilities to explore untapped markets, thereby mitigating the impact of the reciprocal tariffs.
"The government must act swiftly to protect the interests and ease the concerns of local export industries, including Small and Medium-sized Enterprises (SMEs) and the manufacturing sector, which are set to face severe consequences from rising business costs and slowing global demand due to this tariff increase," he said.
Hamzah's comments follow the announcement that the United States, under President Donald Trump, had imposed a 24 per cent reciprocal tariff on Malaysia.
He expressed that this development posed a serious threat, dragging Malaysia's economy into what he described as a "triple shock" scenario, where the country faces pressures from global factors, domestic challenges, and unadjusted fiscal policies.
"This is a critical and worrying situation because it pushes the country's economy into a state of 'triple shock'—a combination of global effects, internal challenges, and fiscal policies that are yet to be realigned," Hamzah explained.
The Opposition Leader added that for the government to regain public confidence and reassure industry players, it must approach the situation with honesty, transparency, and a realistic understanding of the global economic uncertainties.
"We urge the government to be honest and grounded in its discussions with all parties about the effects of the current global economic uncertainty," he added.
Hamzah said the government cannot rely solely on figures and statistics on paper, as the real solution to the nation’s problems lies in action plans rooted in reality, not in illusions. – April 5, 2025