KUALA LUMPUR (April 8): Malaysia is committed to reforms and will strengthen regional economic ties, amid short-term pain from US reciprocal tariffs, Finance Minister II Datuk Seri Amir Hamzah Azizan said on Tuesday.
The official forecast for the economy to expand 4.5% to 5.5% in 2025 will be affected, and Malaysia must navigate the new complexities by strengthening regional economic integration within Asean as a countermeasure, he said during a panel discussion at the Asean Investment Conference 2025.
“We have to address it," Amir Hamzah said. “Therefore, activating new markets, activating Asean integration growth, is our counter to that.”
He did not provide a new forecast or elaborate in detail.
Amir Hamzah was responding to a question on whether Malaysia could still grow its gross domestic product by more than 5% in 2025, after the sweeping tariffs by the US that include 24% levies on all goods imported from Malaysia.
The panel discussion session also featured Singapore’s Second Minister for Finance Chee Hong Tat and Indonesia's Vice Minister of Finance Thomas Djiwandono.
Committed to reforms
Malaysia's existing economic reforms would not be derailed by the challenges, though some reprioritisation is necessary to cushion the blow, Amir Hamzah said on Tuesday.
The various announced national plans will continue, “because these are structural, fundamental elements that must be sustained", Amir Hamzah said, stressing that economic reforms will continue to be implemented, despite the short-term challenges posed by the tariffs.
"You cannot delay reforms,” he said. “Reforms will secure the success of the country going forward.”
On concerns about continued commitment from US tech giants amid trade uncertainties, Amir Hamzah acknowledged investor caution but highlighted Malaysia's strengths, especially in financial liquidity and having a robust semiconductor ecosystem.
"We can also create a secondary ecosystem, so that we are also able to lift ourselves up along the way, and not necessarily fully dependent on foreign direct investments,” Amir Hamzah continued. “You cannot solve the problem with one magic bullet.”
Effective Wednesday, April 9, Malaysia will face a steep 24% reciprocal tariff from the US. Malaysia will negotiate with the US while stressing that its tariffs are merely a sliver of the 47% that the Trump administration claimed are imposed on US goods imported into Malaysia.
Malaysia maintains a trade surplus with the US, primarily exporting electronics, palm oil and machinery. The US is Malaysia’s third-largest trading partner since 2015. Shipments to and from the US accounted for 11.3% of Malaysia’s total trade, underscoring its importance.