KUALA LUMPUR (April 7): The Trump tariffs that will come into effect on April 9 will damage global investment sentiment, and Malaysia will not be spared, according to Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

“We cannot deny this fact,” Zafrul told the press on Monday, adding that his ministry will be revising its foreign direct investment target for 2025.

The minister noted it is too early to gauge the impact and that quantifying it is even more difficult at this juncture. “But what’s important is for us to start assessing and find ways to mitigate this.”

US President Donald Trump announced last week an executive order imposing a 24% tariff on goods imported from Malaysia as part of a broader trade policy affecting all its trading partners. The tariff rates range from 10% to 50%.

The trade policy announcement sent markets worldwide tumbling.

Zafrul explained that with the uncertainty, companies may put previously planned expansions on hold to conserve cash to weather potential troubles.

The Investment, Trade and Industry Ministry and the Malaysian Investment Development Authority have been in engagement with American companies this year, according to Zafrul, but he did not disclose feedback the ministry and agency received.

Malaysia recorded RM378.5 billion in approved investments for 2024, marking a 14.9% year-on-year growth. Foreign investments made up RM170.4 billion or 45% of the investments.

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