Study will determine support measures for the govt to implement
PETALING JAYA: An in-depth study is being carried out on the impact of US tariffs on key sectors which will be used to determine the appropriate support measures, says the Prime Minister.
Stressing that all options will be studied and considered, Datuk Seri Anwar Ibrahim also assured Malaysians that for now, the government does not foresee a recession in Malaysia.
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Malaysia is also set to convene a virtual meeting with Asean economic ministers to prepare a joint regional response following the April 2 announcement of sweeping tariffs affecting imports from nearly every trading partner.
From Saturday, all Malaysian goods exported to the US face a minimum 10% duty, rising to 24% for most products by this Wednesday, although some exemptions apply.
Facing economic headwinds: Final preparations being made for the 12th Asean Finance Ministers and Central Bank Governors Meeting at the Kuala Lumpur Convention Centre. — Bernama
The Investment, Trade and Industry Ministry, said Anwar, is carrying out the in-depth study on the impact of the tariffs on key sectors, which will be used to determine support measures.
“All options will be studied and considered to ensure the well-being of our people and business sectors,” he said in a statement yesterday.
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Among those expected to be hit hardest, he said, are Malaysia’s rubber, plastics, textiles and furniture industries.
He added that while the semiconductor sector – the country’s top export to the US – enjoys partial exemptions, the broader impact is likely to be significant.
“If the 24% tariff were to be implemented, from an economic perspective, the 2025 GDP growth projection of 4.5% to 5.5% will need to be reviewed.
“However, for now, let me reassure you that the government does not foresee a recession in Malaysia,” said Anwar, adding that the economy remains resilient, underpinned by strong household spending, robust domestic investment, healthy tourism activity and the continued implementation of national master plans.
Anwar described the US decision as a major threat to global trade norms, calling it a rejection of the “principles of free, non-discriminatory, predictable and open trade” established under the World Trade Organisation (WTO), which the US helped to found.
He also rejected claims by US authorities that Malaysia imposes a 47% tariff on US imports.
“The basis for calculating this tariff is fundamentally flawed, which has inaccurately resulted in Malaysia being imposed a reciprocal tariff of 24%,” he said.
At the regional level, he said Malaysia, as Asean Chair this year, will spearhead efforts to present a united front.
“Asean nations are among the countries hit with the highest US tariffs.
“Malaysia will lead efforts to present a united regional front, maintain open and resilient supply chains, and ensure Asean’s collective voice is heard clearly and firmly on the international stage,” he added.
Anwar acknowledged the seriousness of this development, warning that “this round of sweeping tariffs may just be the beginning of greater challenges to come in the external economy.”
However, he pledged that Malaysia would respond with calm and resolve.
“We will do this, not alone and not confrontationally, but in collaboration with friends and partners, and constructively,” he said, reiterating that Malaysia will not introduce retaliatory tariffs.
“We are fully committed to securing a favourable resolution that preserves vital market access, attracts continued foreign investment and supports the well-being of Malaysian workers and businesses,” he said.
Anwar also reaffirmed the government’s commitment to economic and industrial reform through initiatives such as the New Industrial Master Plan 2030 (NIMP 2030) and the National Energy Transition Roadmap (NETR), adding that the Madani government understood the anxieties faced by affected sectors.
