Malaysia faces a potential loss of up to 4% in solar panel export value due to proposed U.S. tariffs on imports from Malaysia, Thailand, Cambodia, and Vietnam, as determined by the U.S. International Trade Commission. The tariffs, aimed at countering cheap solar panel imports, could reduce Malaysia’s export earnings significantly, given the global photovoltaic trade’s value exceeded US$40 billion in 2021. To mitigate this, experts suggest Malaysia diversify its export markets to Europe, India, and Latin America to reduce reliance on the U.S., which is prone to protectionist policies. The solar industry, vital to Malaysia’s economy (contributing nearly 20% to GDP), faces risks from over-dependence on a single market. Local company Itramas Corporation anticipates some cushioning from domestic renewable energy projects but warns that a weaker ringgit, potentially triggered by lower interest rates in response to economic stress, could raise costs for U.S. dollar-denominated components.
Business News
Market diversification urged as Malaysia Faces 4% Solar Export Loss with US Tariff Plans
Malaysia risks 4% solar export loss from U.S. tariffs, urged to diversify markets to Europe, India, Latin America.
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