Chinese business leaders demand the government slash sales tax rates as American trade war threats loom large over Malaysia. The Associated Chinese Chambers of Commerce wants officials to cut the Sales and Service Tax from the current 6 to 8 percent down to just 4 percent for the next two years. Business chiefs warn that companies already face crushing costs and cannot handle more financial pressure. President Trump plans to hit Malaysian goods with brutal 25 percent tariffs starting August 1. The trade war could destroy export businesses and hurt the entire economy.
Malaysian companies sell more goods to America than any other country and the two nations traded almost RM325 billion worth of stuff last year. Business group president Ng Yih Pyng says the tariff threat plus rising costs have left many firms broke and unable to invest in growth. The chambers support government efforts to negotiate a fair trade deal with Washington but want immediate help at home. Officials must protect small and medium businesses that form the backbone of Malaysian industry. Any trade talks must put Malaysian interests first and shield local companies from economic damage.
The Chinese chambers agree with other business groups that call the incoming tariffs an economic earthquake for exporters. Earlier warnings came from small business associations that want the government to delay planned cost increases and speed up emergency loans. Labor shortages in restaurants, hotels and shipping also need urgent fixes to help companies survive the trade war. Business leaders back the government push for open trade but demand quick policy changes to cushion the financial blow.
Malaysian companies sell more goods to America than any other country and the two nations traded almost RM325 billion worth of stuff last year. Business group president Ng Yih Pyng says the tariff threat plus rising costs have left many firms broke and unable to invest in growth. The chambers support government efforts to negotiate a fair trade deal with Washington but want immediate help at home. Officials must protect small and medium businesses that form the backbone of Malaysian industry. Any trade talks must put Malaysian interests first and shield local companies from economic damage.
The Chinese chambers agree with other business groups that call the incoming tariffs an economic earthquake for exporters. Earlier warnings came from small business associations that want the government to delay planned cost increases and speed up emergency loans. Labor shortages in restaurants, hotels and shipping also need urgent fixes to help companies survive the trade war. Business leaders back the government push for open trade but demand quick policy changes to cushion the financial blow.
