In response to the recent announcement by U.S. President Donald Trump regarding new tariffs, Malaysia has taken swift action to mitigate the potential economic impact, according to Tengku Datuk Seri Zafrul Tengku Abdul Aziz, Minister of Investment, Trade, and Industry (MITI).
The minister confirmed that Malaysia had anticipated such a move and had already implemented measures to counter the effects of the tariff increases.
Tengku Zafrul explained that Malaysia had proactively diversified its export markets, particularly focusing on regions such as Kenya, Oman, and Namibia since last year. These efforts have yielded positive results, with significant export growth. Exports to Angola saw a rise of 59.3%, followed by Ethiopia at 56.4%, Egypt at 53.6%, and Algeria at 27.9%.
“The government has also been actively pursuing free trade agreements with various countries. Earlier this year, we signed the Comprehensive Economic Partnership Agreement between Malaysia and the United Arab Emirates (MY-UAE CEPA),” Tengku Zafrul noted in a recent Facebook post.
“Additionally, we resumed negotiations on free trade agreements (FTAs) with the European Union and South Korea last year.”
He also emphasized the growth potential within Southeast Asia, where intra-ASEAN trade remains below 25%. With Malaysia assuming the role of ASEAN Chair in 2025, increasing regional trade will be a key priority.
The tariff announcement from President Trump, which includes a 24% tariff on imports from Malaysia, is part of a broader escalation in the ongoing global trade war. Other countries affected by similar tariff hikes include China (34%), the European Union (20%), Vietnam (46%), Sri Lanka (44%), Cambodia (49%), Laos (48%), and Myanmar (44%).
Tengku Zafrul reassured that Malaysia’s domestic economy remains strong, largely driven by local consumption, which accounts for over 60% of economic activity.
To enhance the country’s strategic response, the government has established the National Geo-Economics Management Centre (NGCC), chaired by Prime Minister Datuk Seri Anwar Ibrahim. The centre is tasked with developing a comprehensive strategy to address the trade dispute.
“At the same time, we will continue negotiations with the U.S. government to find a mutually beneficial solution,” Tengku Zafrul affirmed. “Rest assured, the government is committed to safeguarding the economic interests of Malaysia and its people.”
The swift response from the Malaysian government reflects the country’s preparedness to tackle the challenges posed by the tariff increases while striving to maintain economic stability and strengthen international trade ties.
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