KUALA LUMPUR: The Ministry of Investment, Trade, and Industry (MITI) is closely monitoring the possible influx of cheap goods into Malaysia following the US decision to increase import tariffs on several products, including furniture, pharmaceuticals, and semiconductors.
MITI Minister Tengku Datuk Seri Zafrul Abdul Aziz said the move by the United States to impose higher tariffs could prompt producing countries to redirect their exports to other markets, including Malaysia.
"When the US market becomes less attractive due to high tariffs, producers from the affected countries may look for alternative markets, including in the ASEAN region and Malaysia, to continue their production activities and avoid surplus stock.
"This trade diversion could lead to an influx of lower-priced goods into the Malaysian market, thereby pressuring market prices and affecting the competitiveness of local producers,” he said during a question-and-answer session in the Dewan Rakyat today.
He added that MITI plays an important role in protecting local industries from unfair trade practices through the implementation of trade remedy measures, such as countervailing and anti-dumping duties.
He was responding to a question from Lim Guan Eng (Bagan-PH), who sought clarification on protection measures for the semiconductor, furniture, and other industries affected by US tariffs, as well as the risks of dumping and its impact on trade value and the GDP growth rate.
"When tariffs are raised, producers will look for alternative markets to offload their surplus. Malaysia has the potential to become one of those destinations,” he noted.
He said the furniture, pharmaceutical, and semiconductor sectors are expected to be among the most affected, as the United States is a major export market for these industries. "The increase in US tariffs directly impacts Malaysia’s exports in these sectors. If dumping occurs, local producers will face price pressures and a loss of competitiveness,” the minister said.
MITI will take appropriate action if there is evidence of goods entering the country at unreasonable prices or involving unfair trade practices. "We have legal provisions to protect the domestic market, including anti-dumping measures and countervailing actions,” he said.
Tengku Zafrul stressed that close monitoring will continue to ensure that swift action can be taken if there is a significant rise in cheap imports. - Bernama
