KUALA LUMPUR (April 9): Malaysia is seeking to boost automotive exports to help narrow a four-decade trade deficit in the sector, said a top government official, and help could come from an unexpected country: the US.

Trump’s higher tariffs for Thailand and Indonesia — the two largest vehicle manufacturers in the region — has positioned Malaysia “more favourably”, Deputy Secretary General of the Ministry of Investment, Trade and Industry Datuk Hanafi Sakri said on Wednesday.

“Promoting exports is one of the key strategies, alongside attracting foreign investment into the country and overcoming non-tariff barriers,” he said.

Nevertheless, he did not elaborate on measures to boost automotive exports.

The trade gap in Malaysia’s automotive sector has persisted for over 40 years. In 2024, imports totalling RM54.33 billion far exceeded the RM15.96 billion in gross exports of motor vehicles, motorcycles and parts and components.

The US has imposed a blanket tariff of 24% on goods imported from Malaysia compared to 36% for Thailand and 32% for Indonesia, which all came into force on Wednesday.

Malaysia is home to almost 40 producers and more than 700 component manufacturers. The sector, from manufacturing to aftermarket services, contributed about 5.0% to Malaysia’s economic output while supporting more than 700,000 jobs across the entire value chain.  

“More efforts are still needed to boost our exports,” Hanafi said. There are 16 free trade agreements signed by Malaysia and currently in force, which “can provide companies with broader market access and greater trade opportunities”, he noted.

Hanafi was speaking at the launch of the Jetour Dashing on Wednesday. Jetour is a brand under the Chinese automotive group Chery.

Jetour plans to localise over 40% of its production in Malaysia, one of Asia’s biggest automotive markets, strengthening the local supply chain and creating opportunities for domestic vendors.

The company also aims to export regionally from Malaysia, which aligns with the country's ambition to become a key automotive exporter in Asean, Hanafi added.