Trump’s tariffs: Malaysian tech SMEs will face immediate pinch, but Asian ties will aid recovery — industry players.
US President Donald Trump’s introduction of a 24% reciprocal tariff on imports from Malaysia has thrown a spanner in the works for tech companies. However, industry players remain confident that local small and medium enterprises (SMEs) and start-ups will weather the storm — though not without experiencing funding and supply chain disruptions.
Malaysia’s strong ties within Asia and the region are expected to form the backbone of the tech sector’s resilience. Players are optimistic that this will encourage market diversification and bolster long-term funding and investment.
“Asean and Malaysia should consider a similar approach, particularly as Malaysia currently holds the Asean chair. Tech companies will need to lead this initiative,” said Ridzwan Nordin, co-founder of Kotak Sakti and a member of the National Artificial Intelligence Consortium (NAIC).
Ben Lim, founder and chief executive officer of Nexea — a venture capital, angel investor network and start-up accelerator — says he is not overly concerned about the local tech sector, given the Malaysian government’s generally business-friendly stance. However, he notes that beyond strengthening ties within Asean, supply chain diversification will become increasingly vital.
Malaysia has experienced notable growth as a tech hub in Southeast Asia, said Victor Chua, founder and managing partner of Vynn Capital. He foresees an influx of investments from North Asia.
Source: Theedgemalaysia
