KUALA LUMPUR — The Ministry of Investment, Trade and Industry (Miti) will submit an in-depth study on the impact of the United States (US) tariffs on several export sectors within this coming week.
Miti Minister Tengku Datuk Seri Zafrul Aziz will also convene a virtual meeting with all Asesan Economic Ministers to prepare a coordinated Asean response.
“An impact study on specific sectors will be carried out to determine the necessary support for sectors severely affected by the tariffs,” Prime Minister Datuk Seri Anwar Ibrahim said in a special video message to address the US tariffs.
Anwar, who is also the Finance Minister, said all options would be explored to ensure the well-being of the people and business sectors.
At the regional level, Malaysia, as the Asean chair, will strengthen collaboration with its neighbours.
“Asean nations are among the countries hit with the highest US tariffs. As Asean chair, Malaysia will lead efforts to present a united regional front, maintain open and resilient supply chains, and ensure Asean’s collective voice is heard clearly and firmly on the international stage.
“We must acknowledge that this round of sweeping tariffs may only be the beginning of greater challenges to come in the external economy. We must be mentally prepared to weather the potential storm ahead and work together as a nation to safeguard our continued prosperity. But this government stands ready to address and mitigate them.
“We will do this, not alone nor confrontational, but in collaboration with our friends and partners, and constructively,” said Anwar.
In his special address, Anwar reiterated that Malaysia, which was imposed with a 24% tariff, would not impose retaliatory tariffs, and had started high-level negotiations with the US on the matter.
He was echoed by Bank Negara Malaysia Governor Datuk Seri Abdul Rasheed Ghaffour, who said separately that Malaysia still has room to negotiate with the US on the 24% tariff on Malaysian goods.
“There is still room for negotiation, and we do not yet know the full extent, timing, or magnitude of the tariff, nor which scope of coverage and which products will be affected by the tariff.
“We need to closely examine the impact on inflation. At present, our inflation forecast remains between 2% and 3.5%,” he told Bernama during a walkabout session in preparation for the 12th Asean Finance Ministers and Central Bank Governors Meeting (AFMGM) that begins tomorrow.
Abdul Rasheed said the central bank is still awaiting further details from the US about the tariffs.
Meanwhile, Finance Minister II Datuk Seri Amir Hamzah Azizan also called for further analysis and discussion, saying Malaysia should not panic or rush into decisions over the US tariff.
Malaysia needs time to further assess the impact of the 24% tariff on industries and, consequently, on inflation, he said.
“For now, Malaysia’s approach is to continue discussions with the US, as we believe that through dialogue, a better solution can be found,” Amir Hamzah said when met at preparations for the AFMGM.
Bank Negara has set the inflation projection for this year at around 2% to 3.5%, which already takes into account the planned subsidy adjustments in the future, the minister added. – April 6, 2025