Prime Minister Datuk Seri Anwar Ibrahim has assured Malaysians that the country is not on the brink of a recession, despite fresh US tariffs that have sparked concerns about global economic stability.
Speaking in a video statement, Anwar — who also serves as Finance Minister — acknowledged the potential impact of the newly imposed US tariffs but emphasized that Malaysia’s economic foundations remain solid. The US, under President Donald Trump, has triggered global market anxiety after slapping tariffs on 168 countries, including Malaysia, prompting fears of another major trade war following China’s retaliation.
Starting April 5, all Malaysian exports to the United States are subject to at least a 10% tariff, with most products facing a sharp 24% rate from April 9. While the increased duties could impact trade, Anwar stressed that there are currently no plans for Malaysia to retaliate with its own tariffs.
“If the 24 per cent tariff were implemented, from an economic perspective, the 2025 Gross Domestic Product (GDP) growth projection of 4.5 - 5.5 per cent will need to be reviewed,” Anwar noted. “However, for now, let me reassure you that the government does not foresee a recession in Malaysia.”
Anwar pointed to Malaysia’s strong macroeconomic fundamentals as a source of confidence. He highlighted steady household spending, solid domestic investment, a rebound in tourism, and ongoing execution of national development blueprints as key factors supporting the economy. These indicators, he said, place Malaysia in a position of strength to withstand external shocks.
As a country that thrives on open trade, Malaysia views the unilateral US decision on tariffs as a serious threat to the current global trade and investment environment, Anwar said, underscoring the broader implications of the US move.
While the coming months may require economic recalibration, Anwar’s message aimed to reassure the public and investors that Malaysia is well-equipped to navigate the storm. The government’s focus, he affirmed, remains on economic resilience, strategic planning, and maintaining investor confidence in the face of external uncertainties.
With global trade tensions rising, Malaysia’s measured approach — opting not to retaliate — reflects its commitment to economic stability and long-term growth, even as it urges for a more balanced and cooperative international trade environment.
Information Source: The Star
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