KUALA LUMPUR, July 9 -- The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) has urged the government to lower the expanded Sales and Service Tax (SST) rate to 4 per cent for two years, warning of mounting cost pressures on businesses ahead of a looming 25 per cent US tariff.

The business group said the proposed reduction, from the current 6 per cent to 8 per cent rate, would offer relief to companies already struggling with rising operating costs and global trade uncertainties.

ACCCIM president Datuk Ng Yih Pyng said the combination of tariffs, economic headwinds and multiple new cost measures had left many firms financially strained and less able to invest.

He warned that the incoming tariff, announced by US ...