BUTTERWORTH (April 12): Malaysia will leverage its strong ties with the US, Europe, China and Asean to seek a resolution to the US retaliatory import tariffs, Prime Minister Datuk Seri Anwar Ibrahim said.

He said Asean member states had also agreed to coordinate efforts to address the tariff issue collectively.

“This is important because we are not acting solely as Malaysia, but as a united Asean bloc,” he said.

“We hope that through discussions and negotiations, both on behalf of Malaysia and Asean, we can resolve the tariff issue as effectively as possible.”

He was speaking at the Aidilfitri Madani 2025 celebration with Penang Chief Minister Chow Kon Yeow at the Picca Convention Centre @ Arena Butterworth, Penang, on Saturday.

Also in attendance were Education Minister Fadhlina Sidek, Human Resources Minister Steven Sim Chee Keong, and other state leaders.

Anwar, who also chairs Asean 2025, said Malaysia would not simply complain or concede to the tariff increases imposed by the US, expressing confidence that Asean countries would unite to overcome the economic challenge.

“The test of any crisis is whether we complain, give in, or mobilise our efforts to find a new path. According to Joseph Schumpeter's theory, a desperate situation finds a way to rise again,” he said.

The finance minister expressed concern as Malaysia, particularly Penang, is a key exporter of semiconductor materials, with exports reaching RM200 billion, 65% of which are destined for the US.

Anwar further emphasised that Malaysia must set an example as a harmonious nation, with a stable economy, clear policies, and a diligent populace.

“We must eliminate bad practices, laziness, delays in approvals, and corruption,” he said.

He called for improvements in the quality of work and productivity to ensure Malaysia remains competitive and economically stable.

US President Donald Trump announced on April 2 that a basic tariff of 10% would be introduced on all countries, with higher duties of 24% imposed on several countries, including Malaysia.

This move directly increased import duties on key trading partners. However, Trump announced last Thursday that the higher tariff increase would be paused for 90 days to allow room for trade negotiations with affected countries.

For the record, exports from Penang-based companies to the US amounted to 17% (RM76 billion) in 2023, while Malaysia’s total exports to the US were RM161 billion, with the electrical and electronics sector being the primary contributor.

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