This just in: Starting today, August 1, the United States has officially reduced tariffs on Malaysian products to 19%.
In simple terms?
The US is now charging less “import tax” when buying things from Malaysia and that’s actually good news for our economy.
Let’s break it down!
Wait, What Are Tariffs Again?
Tariffs are like extra charges a country adds when buying things from another country. It’s like a “fee” at the border.
So when the US imposes high tariffs on our products, our goods become more expensive for them to purchase.
Now that they’re lowering it to 19%, Malaysian products like:
- Palm oil
- Electronics
- Rubber gloves
- Furniture
- Clothing
… are cheaper and more attractive to American buyers. That means we might sell more!
So What Does This Mean for Us in Malaysia?
More Sales = More Jobs
If US companies buy more from us, our factories and businesses might need to hire more workers to keep up. That means more job opportunities.
Our Economy Gets a Boost
More exports = more money coming into Malaysia. That helps businesses grow and it can make our ringgit a bit stronger too.
Good for Local Businesses
Even small businesses can benefit. If you’re in logistics, delivery, packaging, or supply chains, this could be a great time to grow.
But Why Are Some Malaysians Angry?
Here’s where things get complicated.
While the lower tariff sounds good, many Malaysians are actually upset and here’s why:
We Didn’t Get the Best Deal
Yes, 19% is better than before. But compare this:
- Singapore: 10%
- Vietnam: 20%
- Malaysia: 19%
- Brunei: 25%
- Myanmar & Laos: 40%
People are asking: Why did Singapore get a better deal than us? Are we being sidelined?
We Weren’t Even Consulted
The US made this decision without discussing it with Malaysia. No negotiations, no heads-up, just an announcement. Many feel that’s a bit of a slap in the face.
It Feels Like a Downgrade
To some, this isn’t a “win,” it’s a signal that Malaysia might be losing influence on the global stage. We’re seen as just another player, not a priority.
Is There a Catch?
Yeap, a few things to keep in mind:
- This change is real and effective today, but it might not last forever.
- It mostly benefits people in export-related industries, not necessarily your everyday groceries (sorry..).
- The impact will take some time, don’t expect instant change overnight.
So What Can You Do?
Looking for a job? Keep your eye on companies that export. They may start hiring soon.
Running a business? Think of how you can serve exporters or enter the supply chain.
Investing? Stocks linked to exports (like tech, palm oil, glove companies) might get a boost.
Just curious? Stay informed. These global shifts do affect us here in Malaysia.
TL;DR (Too Long; Didn’t Read):
The US just lowered tariffs on Malaysian goods to 19%.
This means our products are cheaper for them to buy = we can sell more = good for our economy, exports, and maybe jobs too.
But many Malaysians are unhappy. We weren’t consulted, and countries like Singapore got better deals. It feels like Malaysia is being pushed down the priority list, and that stings a bit.
A Little Note from Ringgit Feed: Just a friendly reminder from your friends at Ringgit Feed: this article is for sharing ideas and general information to empower you. It’s not official financial advice. Tax laws can be complex and change, so when it comes to your specific tax situation, it’s always a good idea to chat with a qualified tax advisor or LHDN directly for personalised guidance. Your financial journey is unique, and getting expert advice is always smart!
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