MALAYSIA will continue to prioritise the exploration of new and non-traditional markets to safeguard its economic and trade interests amid a changing global landscape, Investment, Trade and Industry (MITI) Minister Tengku Datuk Seri Zafrul Abdul Aziz said on Tuesday.
Speaking during a press conference on the Ministry of Investment, Trade and Industry's (MITI) first quarter 2025 performance report, Tengku Zafrul said the government will allocate additional funds to support Malaysian companies, particularly small and medium enterprises (SMEs), in breaking into emerging markets.
“These allocations will provide opportunities for these companies to enter new markets such as Russia, Africa, the Middle East, and South America,” he said during a question-and-answer session at the briefing.
He also noted that Prime Minister Datuk Seri Anwar Ibrahim is expected to undertake an official visit to Russia in the near future. “The prime minister is expected to meet with partners and companies trading with and investing in Malaysia, as well as hold meetings with Malaysian investors in Russia,” he added.
The initiative follows Anwar's earlier announcement in Parliament that RM50 million will be allocated to the Malaysia External Trade Development Corporation (MATRADE) to accelerate the country’s push into new markets.
Tengku Zafrul said Malaysia is also looking to deepen collaboration with economic blocs such as BRICS and MERCOSUR, while continuing efforts to diversify its trade base. The government will further enhance intra-ASEAN trade and expedite the implementation of the ASEAN Trade in Goods Agreement and the ASEAN Digital Economy Framework Agreement, he added.
Addressing the impact of recently imposed US tariffs, Tengku Zafrul said the government’s Special Consideration Package—aimed at supporting industries affected by global trade shifts—is currently being finalised and will likely be announced by July.
“We may announce it after July, as our current focus is on discussions with companies. Once we understand the impact, identify the affected companies, and determine which supply chains are disrupted, we will be able to make a decision,” he said.
Among the measures already announced under the package are an additional RM1 billion in guarantees through the Business Financing Guarantee Scheme to improve SME access to bank loans, and RM500 million in soft loans to be channelled through development financial institutions.
While the government is committed to supporting affected sectors, Tengku Zafrul cautioned that any financial assistance must be carefully weighed against fiscal sustainability.
“Our investment division is committed to helping as much as possible, but at the same time, there are fiscal concerns that need to be reviewed before making a final decision,” he said.
Industries identified as being most affected by the US tariff measures include electrical and electronics (E\&E), machinery and equipment, medical devices, furniture, palm oil and rubber, pharmaceuticals, automotive, and aerospace.
Tengku Zafrul also pointed out that several sectors have not fully utilised existing government support facilities, suggesting that more targeted assessments are needed before finalising the support package, which is expected to include additional tax and trade-related incentives. - May 6, 2025
