Lim Guan Eng

BAGAN MP Lim Guan Eng (picture) has urged the government to suspend all proposals that could add financial pressure on Malaysian industries, in response to the economic challenges posed by the US tariffs.

This includes the freezing of cost-increasing policies, including planned tax hikes, electricity tariff increases and floating of RON95 petrol prices.

Lim told the Parliament that if left unsupported, the small and medium enterprises (SME)’s sector contribution could fall to just 35% of the GDP.

“The government must suspend all proposals that add financial pressure on industry,” he said in the special parliamentary sitting to discuss the US tariff issue today.

The former finance minister also cited measures that should be frozen, including e-invoicing, Sales and Service Tax (SST) expansion and Employees’ Provident Fund (EPF) contributions for foreign workers.

Lim added that a cut in interest rates is crucial now that inflation has eased, allowing economic growth to take priority.

He also emphasised the need for economic stimulus and urged banks to provide relief to struggling borrowers, particularly to help workers.

“Besides government grants, the banking sector must be compelled to give easy loans or offer flexibility on existing ones,” he said.

In a special parliamentary meeting today, Prime Minister Datuk Seri Anwar Ibrahim announced measures including a RM1 billion in financial guarantees to support local SMEs against the impact of US tariffs.

In April 2025, the Trump administration imposed a 24% “reciprocal” tariff on Malaysian imports to the US, as part of a broader Liberation Day trade policy that also included a universal 10% tariff on most imports from other countries.

This is currently on a 90-day pause, with the universal rate being imposed. — TMR