Malaysia has opted against imposing retaliatory tariffs in response to the United States’ recent 10% tariff hike on Malaysian exports. Instead, the Ministry of Investment, Trade, and Industry (Miti) is prioritizing diplomatic engagement with US authorities to seek a resolution that preserves free and fair trade.
Despite concerns over the impact of these tariffs, Miti remains confident in Malaysia’s economic resilience, emphasizing that domestic demand will continue to be the primary driver of growth. To counterbalance potential trade disruptions, Malaysia plans to expand its export market, focusing on high-growth regions while leveraging existing free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP).
In a statement, Miti highlighted that Malaysia will also utilize the Trade and Investment Framework Agreement (TIFA) to negotiate reciprocal trade benefits and explore a Technology Safeguards Agreement with the US. This agreement aims to foster high-tech collaboration in sectors such as semiconductors, aerospace, and the digital economy.
National Strategy to Counter Tariff Impact
To assess and mitigate the economic impact of the US tariffs, Malaysia has established the National Geoeconomic Command Centre (NGCC), which has been approved by the Cabinet. The NGCC, chaired by Prime Minister Datuk Seri Anwar Ibrahim, will develop a comprehensive strategy to safeguard Malaysia’s economic interests.
“https://www.thevibes.com/articles/business/106614/malaysia-wont-impose-retaliatory-tariffs-on-us-says-miti,” Miti stated. The ministry also reiterated its commitment to keeping Malaysia’s economy competitive despite global trade uncertainties.
Strengthening Regional and Industrial Ties
Beyond US negotiations, Malaysia is looking to strengthen economic ties within ASEAN and expedite key industrial policies, including the New Industrial Master Plan and the National Energy Transition Roadmap. These initiatives are designed to reinforce Malaysia’s supply chain resilience and maintain its global trade position.
Miti reaffirmed its commitment to open dialogue and collaboration in resolving trade disputes, underscoring Malaysia’s dedication to promoting mutual economic prosperity.
Information Source: The Vibes
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