Welcome President Trump! Maintenance underway on a building ahead of the 47th ASEAN Summit in October. Prime Minister Anwar Ibrahim confirmed US President Donald Trump will be in attendance. — RAJA FAISAL HISHAN/The Star
KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim says that Malaysia's success in reducing the US tariff rate is due to effective leadership.
He said the previous 25% tariff was a serious concern due to its potential economic impact.
"The 25% tariff that worried us has been reduced to just 19%. If it had remained high, the impact on our economy would have been substantial.
"We are a hub for semiconductors and electrical and electronics (E&E) in Southeast Asia.
"Our exports to the United States alone make up 60% of total E&E exports – how much is that? Over RM200bil a year in exports to the US from E&E and semiconductors alone," he said on Saturday (Aug 2) at the National Felda Settlers' Day Celebration and Rural Entrepreneurs' Carnival
He added that Malaysian semiconductor exports will continue to enjoy zero tariffs.
"Semiconductors – once again – are not included in this tariff. Zero. We can export."
Anwar said the achievement was due to leadership capable of navigating domestic and international complexities.
"This is why leadership must have the ability to manage not just within the country but also internationally.
"Some people ask what does it have to do with the US? It has to do with saving tens of thousands of our workers. It has to do with securing high tax revenues so they can be returned to the people," he said.
He explained that the government had been engaged in months of negotiations because the 25% rate was simply too high.
"We negotiated for months because the 25% tariff imposed on us was too high. There were conditions that were imposed."
Anwar said that Malaysia's position is as a trading nation with broad global ties.
"We trade with the US, with China, with India, with Australia, with the Arab world."
He also highlighted Malaysia’s leadership in organising key international forums, including a recent historic summit involving Asean, wealthy Arab Gulf nations, and China.
"Two months ago, for the first time, we brought together Asean, the Gulf countries – rich Arab nations like Kuwait, Saudi Arabia, UAE, Qatar, Bahrain – together with China.
"This is a record. It was not done by me alone; Malaysia did it through the strength of the Malaysian people," Anwar said.
He said Asean leaders acknowledged Malaysia's effectiveness, including the region's most senior figure.
"A senior leader in Asean – the Sultan of Brunei – told me that although dozens of Asean summits have been held, he is proud because the Asean-Gulf-China summit in Kuala Lumpur was the largest and the most efficiently organised by our friends."
Anwar concluded by stating that while Malaysia does not always agree with the policies of its partners, it remains firm and principled.
"We do not agree with all policies, but we are a trading nation. We are friends with everyone, but we still dare to state our stance with courage."
