KUALA LUMPUR (April 4): The Malaysian International Chamber of Commerce and Industry (MICCI) has called on the government to urgently set up a council to lead national-level mitigation efforts in response to the US' imposition of a 24% tariff on Malaysian exports, warning that up to 50,000 Malaysian jobs are at risk if the issue is not addressed immediately.

The chamber proposed that the council be co-chaired by the Ministry of Investment, Trade and Industry and MICCI, saying that a comprehensive government strategy is urgently required.

"Malaysia cannot afford to adopt a wait-and-see approach while other regional economies move quickly to negotiate relief or exemptions. As a nation, we must act swiftly and collaboratively to protect our industries, jobs, and global competitiveness," said MICCI president Christina Tee in a statement on Friday.

While some companies have already begun implementing defensive measures — such as relocating partial production and renegotiating contracts — MICCI believes a coordinated national effort is essential.

Most exporters will not be able to pass the increased costs on to consumers due to pricing pressures, the chamber said. This will force them to absorb the burden internally or restructure contracts to remain viable.

Thus, MICCI recommends establishing bilateral working groups under the Malaysia–US Trade and Investment Framework Agreement and providing technical advisory services for affected exporters.

As part of its proposed five-point response strategy, the chamber is advocating for initiatives including a tariff cushioning scheme, trade agreement acceleration, a defence taskforce that will look at the classification of goods under the harmonised system codes that are used by customs authorities worldwide to determine tariff rates, and a US diplomacy taskforce.

It is also proposing that an exporter resilience fund be set up to help those who are badly impacted by US' latest tariff policy.

If left unmitigated, MICCI estimates that the tariff shock could result in up to 50,000 direct and indirect job losses, particularly in key industrial hubs such as Penang, Johor, and the Klang Valley.

Sectors at highest risk include electronics, gloves, and automotive parts, where export-linked production volumes may decrease, the chamber noted.

Malaysia’s significant reliance on trade — accounting for over 65% of gross domestic product — makes it particularly vulnerable to such external shocks, Tee said.

“These tariffs risk rendering our exports uncompetitive in the US, forcing businesses to reconsider contracts, restructure operations, or even shift production abroad. Many are already under pressure from rising input costs, and this adds yet another layer of strain,” she said.

“This is a pivotal moment for Malaysia. We must respond with urgency and unity to safeguard our competitiveness and position in the global value chain. MICCI stands ready to collaborate with the government and industry players to develop practical, forward-looking solutions," added Tee, who is also the managing director and group chief executive officer of Cape EMS Bhd (KL:CEB).  

Meanwhile, MICCI advised businesses to reassess supply chains, expand into new markets, and leverage Asean trade networks.

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