Malaysia is actively engaging with U.S. authorities to address the impact of the recently announced 10% tariff hikes on Malaysian exports. While Malaysia is not considering retaliatory tariffs, it is committed to upholding fair trade principles. The newly established National Geoeconomic Command Centre (NGCC), chaired by the Prime Minister, will assess the impact and formulate strategies to maintain Malaysia’s economic competitiveness.
TIFA
Malaysia will leverage the Trade and Investment Framework Agreement (TIFA) and pursue a Technology Safeguards Agreement with the U.S. to enhance cooperation in semiconductors, aerospace, and the digital economy. Despite a trade deficit in goods, the U.S. maintains a services trade surplus with Malaysia, underlining strong economic ties.
Tariffs Impact
To mitigate the impact of tariffs, Malaysia is diversifying its export markets by focusing on high-growth regions and utilizing Free Trade Agreements (FTAs) like CPTPP and RCEP. The government is also strengthening domestic supply chains through policies such as the New Industrial Master Plan 2030 (NIMP 2030) and the National Energy Transition Roadmap (NETR).
MITI remains committed to supporting affected industries and ensuring Malaysia’s economy remains resilient, diversified, and robust despite external challenges.
Leave a Reply
You must be logged in to post a comment.