KUALA LUMPUR – Prime Minister Datuk Seri Anwar Ibrahim has stressed that Malaysia must not act hastily in responding to the newly announced tariffs by United States President Donald Trump, warning that any reaction must be calculated and coordinated with regional partners.
“Asean must be strong, but we must not act rashly because there is still no certainty about where these tariffs are heading, how far they will go, what relief or exemptions may exist, and whether further negotiations with the US are possible to ease the pressure,” he said, as quoted by Bernama.
Speaking at the 2025 Madani Aidilfitri National Celebration at the Melaka International Trade Centre (MITC) in Ayer Keroh today, Anwar acknowledged that the tariffs could slightly impact Malaysia’s projected economic growth.
“We do not deny that the planned economic growth may be slightly affected. Our economic growth is quite good, although if you ask the opposition, they will say the ringgit is at its worst, but that is not true. The economy is not political chatter in villages; it needs to be based on figures and facts,” he said.
He noted that a special Cabinet meeting was convened yesterday to deliberate on steps to alleviate the economic pressures stemming from the US move, which has affected not just Malaysia, but also other economies in the region.
“For instance, if you look at the decline in the stock market, the whole world was affected yesterday, including Malaysia. However, Malaysia’s decline is smaller compared to Japan, South Korea, Indonesia, Thailand, and the Philippines. All countries are facing this issue, and it calls for the entire strength of Asean to unite,” he said.
The Prime Minister emphasised that Malaysia, as a trading nation, relies heavily on exports and tourism, highlighting that semiconductors alone contribute US$200 million in exports, with 65% going to the US.
To address the issue, he said Malaysia would take a firm yet diplomatic approach, ensuring the nation’s interests are safeguarded while keeping the door open for dialogue.
“I have personally contacted several individuals close to (US president Donald) Trump,” he revealed, as quoted by FMT.
“And yesterday, our foreign minister, Mohamad Hasan, received a call from US Secretary of State Marco Rubio to continue negotiations.
“Every country in the world wants to be firm in defending its interests, but it will still leave room for negotiations.”
Anwar also said he has begun consultations with Asean leaders, and all agreed that a cautious and united stance is required. As the incoming Asean chair in 2025, Malaysia will continue to engage with regional heads of state to forge a common response.
“I will also negotiate with the Prime Minister of Japan, the President of South Korea, and the President of China so that our actions appear well-coordinated,” he said.
The United States’ decision, formalised through an executive order signed by Trump on Wednesday, imposes a 24 per cent reciprocal tariff on Malaysian goods effective April 9. The Trump administration claims Malaysia maintains 47 per cent trade barriers against the US—a figure which Putrajaya has denied.
Cambodia faces the highest tariff rate among Asean nations at 49%, followed by Laos (48%), Vietnam (46%), Myanmar (45%), Thailand (37%), Indonesia (32%), Brunei (24%), the Philippines (18%) and Singapore (10%).
Anwar expressed confidence that Malaysia, in collaboration with Asean and other Asian economic powers, can weather the storm.
“But Malaysia alone, or Thailand alone, or Indonesia alone will not be strong enough unless we harness the full strength of Asean as an economic bloc to negotiate with that sense of unity,” he was quoted as saying.
“I am confident, God willing, that we can overcome this together with wisdom and patience.”
Among those in attendance at today’s celebration were the Yang di-Pertua Negeri of Melaka Tun Mohd Ali Rustam, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, Melaka Chief Minister Datuk Seri Ab Rauf Yusoh, Communications Minister Datuk Fahmi Fadzil and his deputy Teo Nie Ching, as well as National Unity Minister Datuk Aaron Ago Dagang, several Cabinet members, and Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar. – April 5, 2025