Measures to help Malaysia weather Trump tariff storm being discussed, says Miti

PETALING JAYA: Key measures to help Malaysia withstand the coming global tariff storm from the United States (US) are currently under discussion, says the Investment, Trade And Industry Ministry.

The ministry said among the measures being explored include possibly diversifying Malaysia’s current trade and investment interests as well as strengthening the country’s supply chains.

It also said that the government would continue to have strategic high-level engagement with the US by leveraging on its influence in the Malaysia-US Trade and Investment Framework Agreement (TIFA).

“The government will continue to engage with the US to find an amicable and fair solution to the reciprocal tariff issue as well as continue to prioritise Malaysia’s interests, for the well-being of our people, businesses and exporters.

“Miti and other relevant Ministries will also continue to engage with industry and exporters in order for all of us to weather through this testing period based on a whole-of nation approach.

“We plan to do so with a plan to support impacted industry sectors to mitigate the impact of the tariffs,” it said in a statement on Friday (April 4).

Despite worrying concerns of a possible recession due to global tariffs, the ministry affirmed that it currently does not foresee a recession or fundamental economic slowdown in Malaysia.

“Economic growth projection remains forthcoming, underpinned by resilient household spending, strong domestic investment, healthy tourism receipts, and the continued implementation of national masterplans.

“Our sound economic fundamentals will enable us to weather this challenge from a position of strength and preparedness,” the ministry said, adding that the economic impact of the US’s new tariff measures were still being assessed.

Despite this, the ministry added that it expected the impact of the US tariffs to be significant but that the situation would only be clearer once more information on the tariffs are available as well as the possible speed and scale of retaliatory actions by other economies.

The ministry also refuted the claim by US authorities that Malaysia had imposed a 47% tariff on US imports into Malaysia.

It added that its minister Tengku Datuk Seri Zafrul Abdul Aziz would chair a Special Asean Economic Ministers’ Meeting to discuss the issue on April 10.

“We plan to discuss the broader implications of the US tariff measures on regional trade and investment flows; macroeconomic stability; and Asean’s coordinated response to uphold the region’s economic interests and long-standing commitment to an open, fair, and rules-based trading system.

“Asean leaders will also look to address and mitigate potential disruptions to regional trade, supply chain networks, and cross-border investments to ensure that Asean continues to be a stable, competitive, and attractive hub for global trade and investment,” it said.

The statement came after Prime Minister Datuk Seri Anwar Ibrahim presided over a special meeting Thursday (April 4) to discuss the US tariffs issue with Cabinet.