KUCHING: The recent move by the United States to reduce import tariffs on selected Malaysian goods from 25 percent to 19 percent is expected to provide a significant boost to Malaysia’s export manufacturing sector, especially in supporting Sarawak’s efforts to attract more foreign direct investment and industrial development.
MBKS Councillor and entrepreneur Eric Tay said the tariff reduction would enhance the competitiveness of Malaysian products in the US market and deliver real benefits to local manufacturers and exporters.
He said the reduction applies mainly to electrical and electronics (E&E) products, semiconductors, rubber-based goods, machinery, palm oil derivatives, furniture, scientific instruments, medical devices, and other light industrial items, sectors that together account for more than half of Malaysia’s total exports to the US.
Tay said this is likely to lead to more orders, higher company earnings, and increased job creation.
He noted that Sarawak has been actively developing industrial parks and pushing for more advanced manufacturing capabilities. The lower tariffs could further encourage foreign enterprises to invest, while also promoting talent development and technology transfer in the state.
He also called on the Federal Government to introduce targeted tax policies to amplify the benefits of the tariff cut. He proposed that personal tax relief on lifestyle-related expenses be increased to reflect the realities of modern living costs.
“For example, the current RM2,500 cap on lifestyle relief is outdated. Raising it to RM5,000 or even RM10,000 would help ease the burden on the middle class, encourage spending, and support related industries,” he said.
He also recommended raising the current RM1,000 relief for fitness and wellness-related expenses to at least RM2,000, as a step to encourage healthier living among Malaysians.
Tay concluded that while the US tariff reduction is a welcome external advantage, real economic growth would only come with internal reforms, including strategic tax incentives.
“This could be a turning point for Sarawak. If we act decisively, we can position ourselves as a top destination for high-quality global investment,” he added.
By Connie Chieng