Malaysia

Malaysia complements, not competes with the U.S. in global supply chains – Tengku Zafrul

Malaysia plays a key role as a strategic partner to the United States in the semiconductor and E&E sectors, says Investment Minister, as talks continue on retaliatory tariffs

Updated 1 year ago · Published on 23 Apr 2025 5:21PM

Malaysia complements, not competes with the U.S. in global supply chains – Tengku Zafrul
Many U.S. companies operating in Malaysia, rely on the country as a hub for producing and exporting intermediate goods before final products are completed in the US - April 23, 2025

MALAYSIA is not in competition with the United States but instead complements it within the global supply chain, particularly in the electrical and electronics (E&E) and semiconductor sectors, said Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

Speaking in Washington D.C., where he is leading Malaysia’s delegation for trade discussions with US officials, Tengku Zafrul emphasised that the long-standing partnership between the two countries supports mutual economic interests.

“If we look closely, Malaysia and the US make a strong team in terms of investment and trade. In the global supply chain—especially in the E&E and semiconductor sectors—we play a crucial role. Malaysia is not a competitor to the US, but rather a complementary partner,” he said.

He explained that many US companies operating globally, including in Malaysia, rely on the country as a hub for producing and exporting intermediate goods before final products are completed in the US.

“Our contribution to this supply chain not only benefits Malaysia’s economy, but also supports the operations and growth of American companies,” he added.

Tengku Zafrul is in Washington for a two-day mission to meet with US Trade Representative Jamieson Greer and other stakeholders to discuss the 90-day suspension of retaliatory tariffs currently affecting Malaysia.

He acknowledged that the timeframe for negotiations is short, considering that the US must also engage with multiple affected countries.

“Yes, 90 days is not a long period. At the same time, many other countries are impacted, so the US must negotiate with many parties, including Malaysia, in a limited time frame. We came early to show the US that we are ready to be part of this process,” he said.

He stressed that the current visit is not intended to finalise any deals but to lay the groundwork for deeper negotiations going forward.

“In these meetings over the next few days, we are not expecting to finalise any agreements. This is a starting point. We are here with a Malaysian team ready to negotiate with the US. Our hope is to ensure that our industries and exporters are not adversely affected by high tariffs,” he said.

Tengku Zafrul expressed confidence that the strong trade and investment ties built over more than five decades between Malaysia and the US would serve as a foundation for a mutually beneficial outcome.

“I believe that with the collaboration we’ve built over the past 50 years, we can reassure the US that this is a win-win relationship for both countries,” he added. - April 23, 2025

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