IN the wake of the recent announcement by US President Donald Trump regarding new tariffs, Malaysia has swiftly moved to mitigate the potential economic impacts, according to Minister of Investment (MITI), Trade, and Industry, Tengku Datuk Seri Zafrul Tengku Abdul Aziz.
The minister confirmed that Malaysia had anticipated such a move and has already implemented measures to counter the effects of the tariff increase.
Tengku Zafrul explained that Malaysia had proactively diversified its export markets, particularly focusing on regions such as Kenya, Oman, and Namibia since last year.
These efforts have borne fruit, with notable export growth. Exports to Angola surged by 59.3%, followed by Ethiopia at 56.4%, Egypt at 53.6%, and Algeria at 27.9%.
"The government has also been actively pursuing free trade agreements with various countries.
Earlier this year, we signed the Comprehensive Economic Partnership Agreement between Malaysia and the United Arab Emirates (MY-UAE CEPA)," Tengku Zafrul said in a recent Facebook post.
"Additionally, we resumed free trade agreement (FTA) negotiations with the European Union and South Korea last year."
He also pointed out that Southeast Asia presents a significant growth opportunity, with intra-ASEAN trade still below 25%.
As Malaysia takes up the role of ASEAN Chair in 2025, increasing trade within the region will be a key priority.
The announcement of reciprocal tariffs by President Trump, which includes a 24% tariff on imports from Malaysia, is part of a broader escalation in the ongoing global trade war. Other nations facing similar tariff hikes include China (34%), the European Union (20%), Vietnam (46%), Sri Lanka (44%), Cambodia (49%), Laos (48%), and Myanmar (44%).
Tengku Zafrul also reassured that Malaysia's domestic economy remains strong, driven largely by local consumption, which accounts for over 60% of economic activity.
To further bolster the country’s strategic response, the government has established the National Geo-Economics Management Centre (NGCC), which is chaired by Prime Minister Datuk Seri Anwar Ibrahim.
The centre is tasked with developing a comprehensive strategy to address the trade dispute.
"At the same time, we will continue negotiations with the US government to find a mutually beneficial solution," Tengku Zafrul affirmed.
"Rest assured, the government is committed to safeguarding the economic interests of Malaysia and its people."
The swift response from the Malaysian government reflects the country's preparedness to face the challenges posed by the tariff increases while seeking to maintain its economic stability and strengthen international trade ties. - April 6, 2025
