SHAH ALAM: Malaysia is increasing the use of locally-manufactured solar panels in schools, universities, and hospitals to mitigate potential trade barriers from the United States, says Prime Minister Datuk Seri Anwar Ibrahim.
"Our instruction is that all schools, universities, and hospitals must use Malaysian-made solar panels," Anwar said, highlighting the strategy to reduce dependence on imports amid escalating trade tensions.
The Prime Minister was responding to US President Donald Trump's remarks that no solar panels should be exported to America due to concerns over Chinese companies operating in Malaysia.
However, Anwar noted that Malaysia hosts various other solar manufacturers not affiliated with China.
"This means we can partly mitigate the potential problem that we may face," he said, describing the approach as "creative disruption" and urging a swift shift to local products.
On broader trade issues, Anwar acknowledged uncertainty over how American policy shifts may affect Malaysian exports, especially with Trump announcing a 90-day grace period before new tariffs are enforced.
"Our largest exports to the US include semiconductors, chips, and E&P [engineering and procurement] products. These account for around 60% of our exports to the US, worth approximately RM130bil.
"So far, these have been excluded from the new measures. But if included later, we will have to adapt and promote those products locally," he said during the "Temu Anwar IPTS" event at a local university on Monday (May 5).
Since taking office two and a half years ago, Anwar said his administration has worked to diversify Malaysia’s trade relationships.
"We have opened new markets and strengthened ties with countries like India, China, Korea, Japan, and within Asean," he said.
He pointed to Egypt as one example, where Malaysian investments have grown by 34% over the past two years.
Malaysia is also pursuing and finalising free trade agreements with several regions.
"We are engaging with the US and also fostering an FTA with the European Union.
"From last month, thanks to an FTA with the United Kingdom, our palm oil and other products are being exported there tariff-free," he added.
