KUALA LUMPUR: The Investment, Trade and Industry Ministry (MITI) will consider introducing a special incentive package for businesses affected by United States (US) tariff after assessing its impact, in addition to evaluating its effect on the country’s fiscal position.
Its Minister Tengku Datuk Zafrul Abdul Aziz said the government will focus on reciprocal negotiations with the US starting today, with the main objective of ensuring that no tariffs are imposed on the country, particularly in key sectors.
"We may give it until July because, for now, we are focusing on discussions with the US. Whatever the outcome (from the meeting), we will then know the impact.
"At this moment, we know the basic tariff imposed on Malaysia is 10 per cent, but at the same time, there are sectors that are not subject to tariffs.
"So once we know (after the negotiations end), who is affected, which companies are affected, and which parts of the supply chain are affected, that’s when we can make a decision,” he said during a question and answer session in conjunction with MITI’s 1Q 2025 performance report card media briefing.
Tengku Zafrul also said MITI needs to discuss with the Finance Ministry (MOF) to assess the impact of the special package on the country’s fiscal position.
"MITI does want to help businesses and small and medium-sized enterprises but there are issues that need to be examined in terms of the country’s fiscal position,” he added.
Tengku Zafrul told a press conference after yesterday's special Parliamentary meeting on US tariffs that the reciprocal negotiations will be held virtually, led by Deputy Secretary-General (Trade) Mastura Ahmad Mustafa as Malaysia's chief negotiator with the Assistant US Trade Representative for Southeast Asia and the Pacific (USTR) Sarah Ellerman.
The initial discussions are to determine the scope and technical issues to be addressed during the negotiations to reach an agreement or decision in a win-win situation. - Bernama
