KUALA LUMPUR, April 7 — Malaysia is preparing for a potential long-term impact on its economy due to US President Donald Trump’s tariffs, which will affect nearly all of its trading and investment partners.
Minister of Investment, Trade and Industry Datuk Seri Tengku Zafrul Abdul Aziz confirmed that the government is actively addressing the tariffs’ effects, Bloomberg reported today.
“We are one of the US’s largest trading partners in Asean, and also one of the major recipients of US-based foreign investment,” the minister was quoted as saying at a briefing today.
“We must therefore acknowledge that there will be mid-to-long-term impact.”
He said the tariffs would lead to reduced demand, lower revenue, and cautious investment spending.
Tengku Zafrul further warned that the tariffs might contribute to a decrease in Malaysia’s economic output and a global economic slowdown in the long run.
The government is also concerned about potential dumping of imported goods, which could further disrupt local industries.
However, he said Malaysia’s relatively moderate tariff rate could make its exports more competitive globally, and palm oil exports may see an increase as consumers seek cheaper alternatives.
In response to the tariffs, Malaysia is reviewing its GDP growth target for 2025, while the nation’s currency and stock market have already shown signs of strain, with the ringgit falling and stock indices dropping significantly.
