Malaysia’s exports are set to face a significant shift following the US Supreme Court’s decision to overturn President Donald Trump’s reciprocal tariffs. This ruling could lower the effective US tariff rate on Malaysian goods, giving trade-sensitive companies a potential boost and improving Malaysia’s position in the global export market. Analysts highlight that sectors such as electronics manufacturing, plastic fabrication, and glove production are particularly exposed to the US market, making them key beneficiaries if tariffs are eased.
While the move is broadly positive, the impact on the Malaysia stock market may be gradual. The tariffs have already been applied, and local government reviews on trade policies are expected in the near future, creating a temporary period of uncertainty. Nevertheless, companies with high US exposure, including leading Electronics Manufacturing Services (EMS) providers and glove manufacturers, could see increased demand and improved revenue forecasts if tariffs are reduced.
Investors and market watchers are closely monitoring how this development will influence trade-sensitive listed companies. With Malaysia-US trade relations at the forefront, the potential for tariff relief offers both opportunities and challenges for businesses navigating the current export environment.
Below are several analyst top picks, along with their exposure to the US market and how tariffs may affect their businesses:
VS Industry is ranked among the world’s top 50 Electronics Manufacturing Services (EMS) providers, offering comprehensive, integrated manufacturing solutions to multinational clients across EU, US, and Japan. The company specialises in high-precision electronics assembly, including printed circuit boards, semiconductor modules, and complete system integration, making it a key partner for global technology companies. Over the past several years, VS Industry has established a strong presence in the US market, with the region historically contributing between 30% and 40% of the company’s total revenue.
However, the implementation of US tariffs under the Trump-era trade policies created headwinds for VS Industry. To mitigate higher costs resulting from the tariffs, many US clients reduced their order volumes, causing the US segment’s revenue contribution to drop to 20.6% in 2025, equivalent to RM781.9 million. This decline highlighted the company’s vulnerability to trade policy changes and underscored the sensitivity of its business model to tariff fluctuations.
A reduction or reversal of US tariffs could provide a meaningful boost to VS Industry’s operations. Lower tariffs would likely encourage US clients to increase order volumes, restore previously curtailed demand, and improve profit margins on exported goods.
SKP Resources is a Malaysian-based Electronics Manufacturing Services (EMS) provider specialising in plastic manufacturing and mould fabrication. The company offers a range of precision-engineered products, including custom plastic components and industrial moulds, serving clients across electronics, automotive, and industrial sectors. With a growing footprint in export markets, SKP Resources has established significant exposure to the US, with analysts estimating that approximately 20% of its total revenue is derived directly from US clients. This makes the company particularly sensitive to changes in US trade policies and tariffs.
In its recent 3QFY2026 financial results, SKP Resources reported a revenue decline of 9.2% year-on-year, falling to RM457.2 million, while net profit dropped sharply by 37% year-on-year to RM16.1 million. The decline was primarily driven by reduced order volumes from a key US customer, who scaled back purchases in response to the Trump-era tariffs. The impact of these tariffs underscores the company’s vulnerability to external trade barriers, highlighting how policy shifts can directly influence operational performance and profitability for trade-dependent manufacturers.
The recent US Supreme Court ruling overturning Trump’s reciprocal tariffs could provide relief for SKP Resources. A reduction in tariffs may encourage US customers to restore or increase their orders, potentially stabilising revenue and supporting margin recovery. Additionally, improved trade conditions could enhance the company’s competitiveness against other regional EMS providers, allowing SKP Resources to better capitalise on opportunities in both the US and other international markets.
3. Kossan Rubber Industries Bhd (KOSSAN)
Glove manufacturers are among Malaysia’s most prominent exporters to the United States, and Kossan is a leading player in this sector. The company derives approximately 50% of its revenue from the US market, making it highly sensitive to changes in American trade policies, including tariffs and regulatory adjustments. Kossan specialises in the production of medical and industrial gloves, offering a wide range of products that cater to hospitals, laboratories, and industrial clients worldwide. Its established global distribution network and reputation for quality position it as a key supplier in both the US and international markets.
Analysts suggest that the recent US Supreme Court decision to overturn Trump-era reciprocal tariffs could be advantageous for Kossan. A reduction in tariff rates may encourage higher order volumes from US clients, helping the company regain some of the demand that had been curtailed due to the previous trade barriers. This could translate into short-term revenue growth and improved margins, providing a boost to the company’s financial performance and supporting investor confidence in the trade-sensitive stock.
Get the analysts’ consensus estimates here to understand the companies’ top buy calls.