PUTRAJAYA: The country's semiconductor industry is unlikely to be severely affected by the revised tariffs announced by the United States, says Datuk Seri Anwar Ibrahim.
The Prime Minister said that Malaysia was grateful to secure a 19% tariff rate in recent negotiations, a relatively favourable outcome compared to other neighbouring countries, adding that it could possibly be due to the country's success in helping resolve the Thailand-Cambodia conflict.
"Tariff concerns, particularly in the semiconductor industry, have caused significant unease recently.
"Previously, these were mostly exempted.
"However, most of these companies are US-based or already have commitments to continue their investments and production in the US, so they won’t be severely affected," he said in his speech during the 2026 Budget Consultation Council at the Finance Ministry here on Thursday (Aug 7).
Anwar said, however, there are some exceptions such as Infineon, a German semiconductor manufacturer, that mainly caters to the needs of Germany and Europe, as well as others.
"So, we’re monitoring the situation," said Anwar.
Earlier, US President Donald Trump announced sweeping new tariffs on countries worldwide, which have now come into effect, escalating his trade war.
Trump plans to impose 100% tariffs on semiconductors imported from countries that do not produce, or do not plan to produce, chips within the US and only companies that have invested in or are building chip-manufacturing facilities in the US would reportedly be exempt.
