KUALA LUMPUR — Prime Minister Datuk Seri Anwar Ibrahim reassured the nation that Malaysia remains steadfast in its approach to fostering positive and progressive relationships with all its trading partners, even as it faces challenges stemming from the latest tariff measures imposed by the United States.
In a statement released on Friday night (April 4), Anwar acknowledged that the full impact of the US’s recent tariff actions on Malaysia’s economy is still under review by the relevant ministries and agencies, spearheaded by the Ministry of Investment, Trade and Industry. The Prime Minister emphasized that any response to these tariffs will be formulated with careful consideration, and highlighted that there is ample opportunity for continued dialogue and negotiations with the United States and other key trading partners.
“We are determined to ensure that Malaysia’s position remains firm in maintaining a balance between safeguarding our domestic interests and engaging with our international counterparts in a constructive and mutually beneficial manner. There is always room for dialogue, and we will continue our discussions with our trade partners, both bilaterally and through platforms like ASEAN,” said Anwar in his Facebook post.
The Prime Minister’s remarks come as Malaysia, which currently holds the Chairmanship of ASEAN, plans to lead talks within the regional bloc to address the issue of reciprocal tariffs. The ASEAN member states, particularly in the Indo-China region, have felt the brunt of these measures. Countries such as Cambodia, Laos, Vietnam, and Myanmar are facing steep tariffs, with rates as high as 49% for Cambodia and 46% for Vietnam. Other ASEAN nations are not exempt, with Thailand subjected to a 36% tariff, Indonesia 32%, and both Brunei and Malaysia at 24%.
In the face of these tariff impositions, Anwar reiterated Malaysia’s commitment to the principle of fairness in international trade. Malaysia, he said, would collaborate closely with fellow ASEAN members to ensure that the region is united in advocating for equitable trade terms. He further highlighted that these discussions will be critical to mitigating the effects of the tariffs on ASEAN economies.
A Broader Regional Challenge
The impact of the tariffs has been particularly harsh on the Indo-China region, where countries such as Cambodia and Vietnam are seeing punitive measures that could hamper their economic growth. In contrast, Malaysia’s tariff rate of 24% is notably lower than that of some regional counterparts, yet it remains a point of concern for Malaysian businesses and exporters who may face rising costs in the wake of the changes.
The tariff hike is part of the United States’ broader strategy to address growing trade deficits with several countries, effective as of April 9. Countries with the most significant trade deficits with the US will face even higher reciprocal tariffs. This move is part of the US’s ongoing effort to ensure what it considers a more balanced trade framework.
Safeguarding National Interests
Prime Minister Anwar made it clear that Malaysia’s top priority remains the well-being of its citizens, businesses, and exporters. “As we navigate these challenging circumstances, we will continue to defend the interests of the people and businesses of Malaysia, ensuring that the measures we take are in their best interests,” he added.
While Malaysia’s approach remains diplomatic, Anwar affirmed that the country would not shy away from taking firm stances in the face of unfair trade practices. The government is committed to ensuring that any response to the tariffs is not only strategic but also aligned with Malaysia’s long-term goals for economic growth, stability, and international trade relations.
In conclusion, Malaysia is positioning itself to navigate the complexities of international trade dynamics with a balanced, pragmatic approach, fostering regional solidarity while protecting its own economic interests. The government is committed to ongoing dialogue and negotiations with both the United States and ASEAN member states to safeguard Malaysia’s economic future.