PRIME MINISTER Datuk Seri Anwar Ibrahim has underscored the importance of prioritising domestic economic reform before expanding regional and global cooperation, as Malaysia responds to shifts in United States tariff policy.
Speaking during a briefing with local and international media editors ahead of the ASEAN 2025 Summit, Anwar said the country is enhancing ties with ASEAN partners and major economies such as China, India, and Pakistan, while strengthening engagement with the European Union (EU).
He noted the EU had become “rather dramatic” in its efforts to intensify interaction with ASEAN, signalling a shift towards more active engagement.
On recent developments involving the US, Anwar confirmed early consultations had taken place through Malaysia’s Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Abdul Aziz, who held discussions with US Secretary of State Marco Rubio.
“The initial discussions were positive and offered a platform to clarify Malaysia’s trade position,” Bernama cited Anwar saying.
He added that further meetings had since taken place and highlighted the joint statement by ASEAN, China, Japan, and South Korea as a positive sign of regional commitment to openness and multilateralism.
“But at this stage, it is still too early. Secretary Rubio held an extensive session with the Foreign Minister (Datuk Seri Mohamad Hasan), and I have also discussed the matter with him. The United States has promised to take a sympathetic view and support our position,” he said.
Anwar reiterated that Malaysia remains committed as a trading nation. In addition to its traditional partners, the country is also exploring new markets, including Russia, and will participate in the upcoming BRICS Summit in Rio de Janeiro, Brazil, from 6 to 7 July.
Regarding the US tariff changes, Anwar said Malaysia is monitoring the situation closely but cautioned that it is too early to assess the full impact.
He noted that 60 per cent of Malaysia’s exports are directed to the US, stressing the gravity of the situation.
“We take this seriously. We understand that 60 per cent of our products are exported to the United States. It is a large figure… and we believe action is needed,” he stated.
On the semiconductor sector, Anwar described it as “the most positive” area amid rising trade uncertainty.
“For now, it is exempt from tariffs. But as for the President, we do not know what may happen tomorrow or tonight. For now, it is relatively safe,” he said.
He added that despite global economic slowdowns, Malaysia’s semiconductor industry continues to attract major investment from technology giants such as Microsoft, Google, and Nvidia. - May 22, 2025
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