KUALA LUMPUR (April 7): The Malaysian government announced on Monday it is taking strategic steps to address the potential fallout from the 24% reciprocal tariffs imposed by the US on the country, according to Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

Speaking at a press conference regarding the US tariff, the minister said the government and the Ministry of Investment, Trade and Industry (Miti) have outlined five key measures to mitigate the impact of these tariffs on Malaysia’s economy and export sectors.

The first is the activation of the National Geoeconomic Coordination Council (NGCC), chaired by Prime Minister Datuk Seri Anwar Ibrahim. “Miti is conducting an in-depth impact study on key export sectors to the US, and the findings will be presented at the next NGCC meeting in the near future,” Zafrul said.

The second measure involves forming a dedicated task force to gather feedback from industry players and stakeholders, to ensure Malaysia’s exports and investment flows are not severely affected. “A meeting with industry associations is scheduled for tomorrow (April 8),” the minister said.

Then, on April 10, Malaysia will be chairing a special meeting of Asean economic ministers to discuss the regional implications of the US tariffs and formulate a collective Asean response. “Subsequently, Asean leaders will convene to map out a unified strategy to mitigate potential disruptions to regional trade, supply chains, and investment,” Zafrul said.

The fourth measure is to continue to deepen engagement with the US via the existing Trade and Investment Framework Agreement (TIFA). Malaysia is also considering a technology protection agreement to secure exports in critical sectors such as semiconductors and aerospace. “Sector-specific exemptions will also be negotiated. The minister has already met with the US ambassador this morning, with further negotiations planned,” Zafrul revealed.  

Last but not least, Malaysia will continue efforts to diversify its export markets, building on initiatives launched in recent years by Malaysia External Trade Development Corp (Matrade).  

“In any event, I would like to reassure the industry that Miti will do its utmost to ensure that Malaysia's interests are always protected. What is important is the well-being of the people and our business, and export sector,” Zafrul added.

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