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THE Federation of Malaysian Manufacturers (FMM) has named the US move to impose reciprocal tariffs as its major concern moving into the new year.
The organisation cited that the import tariff may erode exporters' competitiveness and cause a loss in cargo volume, especially among small medium businesses.
The tariff remains a big concern as it will impact the SMEs throughout the country, said FMM president Tan Sri Soh Thian Lai.
He was speaking at the FMM Penang 56th anniversary dinner at the St Giles Wembley Hotel.
FMM has called for a broader and faster realisation of free trade agreements (FTAs) and stronger environment social governance (ESG) initiatives to boost the export market in view of the impact from the US tariff.
Soh also called for the reopening of the foreign labour market for certain segments of manufacturing, as production lines continue to suffer from an acute shortage of workers.
As industries upskill and create better manufacturing value, Soh also called on the authorities to boost skills development and upskilling among the local workforces.
His Penang counterpart Datuk Seri Lee Teong Li cited that the unabated traffic congestion remains the primary concern among the SMEs in the state.
Lee hopes that efforts to improve infrastructure is seamless and fast track, so the state can regain some stability in the traffic dispersal system.
Lee said that plans must be in placed to support the mobility of the workforce and the need for an efficient logistics network here.
Other issues which Penang FMM is pursuing are, the renewal of leasehold land, water supply reliability and meeting the requirements from local authorities.
There are also concerns over the expansion of the sales and services taxation (SST), which Lee said may drive up living costs and the cost of doing business.
He also urged Tenaga Nasional Berhad (TNB), who monopolises the power generation and supply services, to offer reasonable tariff rates for industries.
FMM also recorded its appreciation for Penang's move to ease congestion by coming up with new infrastructure projects such as the elevated highway stretch between Juru and Sungai Dua, and the Mutiara light rail transit (LRT) system.
It also noted that Malaysia has improved in the 2025 World Competitiveness Ranking, up 11 spots to 23rd, which is the best ranking since 2020. - August 30, 2025.
