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FMM calls for stronger supply chain safeguards and export support amid US tariff fallout

FMM In The News: THE MALAYSIAN RESERVE, May 5, 2025

THE
 Federation of Malaysian Manufacturers (FMM) has urged the government to reinforce supply chain safeguards and expand export support mechanisms, following Prime Minister Datuk Seri Anwar Ibrahim’s announcement of strategic responses to US-imposed tariffs during a special parliamentary session today.

While welcoming the government’s proactive stance, FMM stressed that the initiatives must be matched with practical execution and private sector involvement to shield Malaysian exporters from global trade disruptions.

“To maximise the impact of this funding, it must be accompanied by more effective and responsive instruments,” FMM President Tan Sri Datuk Soh Thian Lai (picture) said in a statement today, referring to the RM50 million allocated to MATRADE for penetrating emerging markets such as the GCC, BRICS, South Africa, and Latin America.

FMM reiterated the need to enhance the Market Development Grant (MDG) by increasing funding caps, waiving MATRADE collaboration fees, and broadening eligible activities to include digital marketing, product certification, and market research. Empowering industry associations to lead targeted trade missions was also identified as key.

On regional integration, FMM championed the proposed ASEAN Supply Chain Coordination Council (ASCCC) under Malaysia’s ASEAN Chairmanship, envisioning it as a dedicated platform to improve policy alignment and crisis response across ASEAN’s supply chain network.

“The ASCCC will operate at an operational and technical level to drive tangible outcomes,” Soh noted.

Domestically, FMM expressed support for the Ministry of Investment, Trade and Industry’s planned National Supply Chain Council (NSCC), calling for close government-industry collaboration. It also pushed for the immediate implementation of the Government Procurement (GP) Act and urged Government-Linked Companies (GLCs) to increase sourcing from local manufacturers.

“A credible, transparent and inclusive GP system, anchored by a ‘Buy Made in Malaysia’ first mandate, is vital,” Soh said.

Soh further called for strict enforcement against fraudulent certificates of origin to protect Malaysia’s trade reputation.

“The Government must take firm action to enforce the provisions under the Customs Act,” Soh noted, highlighting the risks of transshipment abuse.

“FMM will continue to advocate for practical and targeted policy support to help businesses overcome short-term shocks and strengthen Malaysia’s position as a resilient and globally competitive manufacturing and export hub,” he concluded. — TMR

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