PETALING JAYA: Key measures to help Malaysia withstand the global tariff storm from the United States are being discussed, says the Investment, Trade And Industry Ministry (Miti).
Among the measures being explored are possibly diversifying Malaysia’s current trade and investment interests as well as strengthening the country’s supply chains, Miti said.
It also said the government would continue to have strategic high-level engagement with the United States by leveraging on its influence in the Malaysian-US Trade and Investment Framework Agreement.
“The government will continue to engage with the US to find an amicable and fair solution to the reciprocal tariff issue as well as continue to prioritise Malaysia’s interests, for the well-being of our people, businesses and exporters.
“Miti and relevant ministries will also continue to engage with the industry and exporters in order for all of us to weather through this testing period based on a whole-of-nation approach.
“We plan to do so with a plan to support impacted industry sectors to mitigate the impact of the tariffs,” it said in a statement yesterday.
The statement came after Prime Minister Datuk Seri Anwar Ibrahim chaired a special meeting to discuss the US tariffs issue with the Cabinet.
Miti noted that the economic effects of the US tariff issue have surpassed initial expectations, prompting a reassessment of the 2025 gross domestic product (GDP) growth forecast of between 4.5% and 5.5%.
“The full impact will become clearer with more details on the implementation timeline, tariff rates, product coverage, and the outcome of trade negotiations,” it said, adding that the response from other economies will significantly affect the outcome.
Despite concerns of a possible recession due to global tariffs, Miti affirmed that it does not foresee a recession or fundamental economic slowdown in Malaysia.
“Economic growth projection remains forthcoming, underpinned by resilient household spending, strong domestic investment, healthy tourism receipts, and the continued implementation of national masterplans.
“Our sound economic fundamentals will enable us to weather this challenge from a position of strength and preparedness,” the ministry said, adding that the economic impact of the new tariff measures was being assessed.
Despite this, Miti said it expected the impact of the US tariffs to be significant but that the situation would only be clearer once more information on the tariffs was assured as well as the possible speed and scale of retaliatory actions by other economies.
Miti also refuted the claim by US authorities that Malaysia had imposed a 47% tariff on US imports into Malaysia.
Miti also said its Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz would chair a Special Asean Economic Ministers’ Meeting on Thursday.
“We plan to discuss the broader implications of the US tariff measures on regional trade and investment flows; macroeconomic stability; and Asean’s coordinated response to uphold the region’s economic interests and long-standing commitment to an open, fair, and rules-based trading system.
“Asean leaders will also look to address and mitigate potential disruptions to regional trade, supply chain networks, and cross-border investments to ensure that Asean continues to be a stable, competitive, and attractive hub for global trade and investment.”
