FORMER Finance Minister Lim Guan Eng has shared the possibility of "goods dumping" in Malaysia following the US move to curtail imports through tariffs.
Lim singled out that the country needs to be alert to such a situation as exporters who are unable to export to US, may redirect their excess stocks to Malaysia instead.
This is the unfortunate situation which may ensue following the US move to impose the punitive import tariffs on goods coming into their country globally, whereas Malaysia is an open economy, reliant on trade and investments.
Sharing a reply from Minister of Investment, Trade and Industry Tengku Zafrul Abdul Aziz, Lim said the ministry is currently monitoring the possibility of goods dumping from within the region.
The ASEAN region is among the nations hit significantly by the US tariffs, especially Vietnam, Cambodia, Thailand and Malaysia.
"There is a need to protect the local industries from indiscriminate dumping."
Dumping also occurs when goods creeping into the domestic market, are ones which are priced intentionally cheaper than similar local items.
Lim shared that the trade authorities were also using the legislation to fight possible dumping by enforcing the Anti-Goods Dumping Act 1993 and reaching out to the World Trade Organisation to uphold the international obligation standards.
He also echoed Tengku Zafrul's stance that industrialisation-led exports would continue to be the mainstay of the country's economy.
With the US market becoming unattractive due to the tariffs, Lim said that the country has no choice but to tap new markets in Africa, Latin America, Middle East and Asia.
Apart from the general reciprocal tariffs of 19% effective October 7, 2025, Malaysia faces possible tariffs of 25-30% for upholstered furniture, 25-50% for kitchen cabinets and vanities,10% for lumber wood, 100% for branded pharmaceutical and patents as well as up to 300% for semiconductors, said Lim.
"Those who discredit the export-led industrialisation ignore the tremendous progress that many countries have benefited over 40 years, including helping to lift millions of Malaysians out of poverty.
“However, nothing stands in comparison to the miraculous achievement of China in lifting 800 million people out of poverty, the greatest economic success in modern history. In the process China has transformed its economy to become the second largest and soon the world's largest economy."
There is no doubt that export-led industrialisation policy is a vital cog of a rational economic model that should not be blithely dismissed as a race to the bottom in terms of low wages, low skill sets, low value and low technology, said Lim.
In view of the threat from the tariffs, Lim said that Tengku Zafrul's ministry has agreed to provide RM1 billion in loan guarantees and RM 500 million in easy financing for the localised small medium enterprises affected by the tariffs.
"These financial assistance by the government underline the importance of continuing Malaysia’s export-led industrialisation policy."
Clearly the export policy is still the economic policy of choice for Malaysia’s sustainable growth and prosperity, he added. - October 23, 2025.
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