Kota Kinabalu: The Malaysian International Chamber of Commerce and Industry (MICCI) believes the country may be able to weather the potential economic fallout of the 24 per cent tariff imposed by the United States through negotiations.
Its Chairman, Datuk Lee Swi Heng, said the two countries should negotiate towards an outcome that benefits both Malaysia and the US.
“The tariff affects most exports from Malaysia, including Sabah’s key commodity—palm oil. Only pharmaceutical and semiconductor products are currently exempt.
“Companies like Kibing, which manufactures panels, would also be impacted if their goods are shipped to the US,” he said after the MICCI Sabah Annual Luncheon 2025 in conjunction with the 188th Anniversary of MICCI at Sabah International Convention Centre (SICC).
As of now, the US has placed a 90-day pause on the tariff, but this, according to Lee has created uncertainty.
“At this point in time, we do not know what the issue will be going forward. The members are saying that in times of uncertainty, the question is, where do you go from here?”
“As a result, everyone is adopting a wait-and-see attitude. This means they cannot take any action until there is a clear direction, particularly until the US specifies which sectors will be affected by the tariff. And then they will take necessary actions to counter that.
“That being said, as I mentioned, both the Americans and Malaysians are sitting down to reassess the entire tariff situation. So, for the next 90 days, there is not much that can be done except to wait and see,” Lee said.
Earlier in his speech, he said that Investment, Trade and Industry Minister Datuk Tengku Zafrul Aziz’s Blog explaining the issue and Malaysia’s position, was an excellent initiative that gave Malaysians a clear perspective on the issue.
“Listening to his elaborate explanation reminded me of the importance of timely and clear government response to geopolitical and cross-border events. Such response gives assurance, an element of comfort, and provides hints to business leaders,” he said.
However, he said that the tariff aftershocks may be short-lived until US President Donald Trump, tries out other tricks to reach his Make America Great Again goal.
He said there are announcements and developments that not only require our response, but responses that has the effect of protecting our well-being and long-term prosperity such as earthquake preparedness in Sabah, in light of the recent quake in Myanmar that caused a building collapse in Thailand.
“Have our building codes been given another look?” he said.
He also said that Indonesia’s development of its new capital, Ibu Kota Nusantara, in East Kalimantan, where tens of billions are being invested raises important questions about the potential impact, competition, and challenges for Sabah, especially as both cities share the same East ASEAN neighbourhood.
“Like Sabah, Nusantara will be part of the conversation on the proposed pan-Borneo railway and highway. So better than responding, perhaps, we should seek to be actively participating,” he said.
On another note, he said that MICCI Sabah Chapter is appreciative of the stable, consistent and business-friendly administration of the state government under the stewardship of Chief Minister Datuk Seri Hajiji Noor.
“We share your ambition of pushing economic growth, elevating the manufacturing sector’s share of our Gross Domestic Product (GDP), creation of the energy hub, the development of the blue economy and a host of initiatives towards the prosperity of Sabah.
“I on behalf of MICCI Sabah pledge to continue to be a partner in the State’s collective pursuit for our common prosperity,” Lee said.
