KUALA LUMPUR: Malaysia’s trade figures may have seen a record high of RM249.89bil in March this year, but that momentum of growth is unlikely to keep going in the coming months, says Investment, Trade and Industry Minister (Miti) Tengku Datuk Seri Zafrul Tengku Abdul Aziz.
According to Tengku Zafrul, this is because many companies were exporting quickly before the on-again, off-again US tariffs was implemented in April.
“We believe companies are exporting quickly and stocking up lots of goods required before the US tariffs come into effect.
“March is a record number, but it is not sustainable going forward,” he said yesterday.
Tengku Zafrul said the International Monetary Fund (IMF), the World Bank and the World Trade Organisation have reduced their economic forecasts for this year.
He also said that during recent negotiations in Washington DC, the United States wanted Malaysia to address issues pertaining to safeguarding technology, investing in strategic sectors and reducing trade imbalances.
“The United States stated that it would like to see Malaysia investing in certain strategic sectors there.
“Government-linked companies alone, to date, have invested close to US$45bil (RM191bil) in the bond and equity markets in the United States,” he said.
“They felt many issues can be improved on and these are some of the things they want us to look at,” added Tengku Zafrul.
The United States, he said, wants Malaysia to address any transshipment offences committed against the country.
“That is why we announced on May 5 that the issuance of a certificate of origin is within the authority of my ministry,” he added.
Tengku Zafrul said trade negotiations with the United States will officially begin this morning.
The IMF downgraded Malaysia’s GDP growth forecast from 4.7% to 4.1% while the World Bank projects Malaysia’s GDP growth at 3.9%.
On April 2, US President Donald Trump announced a sweeping 10% baseline duty on goods from all countries entering into the United States, and a steeper 24% levy specifically targeting Malaysian goods.
However, except for China, Trump announced a 90-day pause on the implementation of his retaliatory tariffs just hours after they came into effect on April 9.
