KUALA LUMPUR — The 104% tariff on Chinese goods announced by U.S. President Donald Trump is expected to have a significant impact on the global economy, including Malaysia. According to Dato G Kumaar Aamaan, Chief Editor of Ottrangknews and an activist, this decision could severely damage the stability of the country’s economy if not managed carefully.
Short-term and Long-term Impacts
With this significant increase in tariffs, the prices of imported goods from China will surge, leading to higher costs in the Malaysian market. Malaysia, as a country dependent on global trade, including China as one of its largest trading partners, will undoubtedly be affected by this price hike.
Dato G Kumaar Aamaan stated, “If this situation continues, we will see a sharp rise in the cost of living for Malaysians. Not only that, many industries that rely on raw materials and products from China will face huge challenges, and this could lead to companies having to reduce their workforce or even shut down operations.”
Risks of Unemployment and Loss of Foreign Investment
More worrying, the long-term effects of these tariffs could lead to a reduction in job opportunities in Malaysia. Companies that rely on the supply chain from China will have to cut back on production or move to other more trade-friendly countries. “If large companies, particularly those involving foreign investments, decide to leave Malaysia due to rising costs or trade uncertainties, our country will experience a massive wave of unemployment,” said Dato G Kumaar Aamaan.
Immediate Actions That Should Be Taken
To tackle this crisis, Dato G Kumaar Aamaan recommends that the Malaysian government urgently implement policies to reduce the direct impact on the people and local industries. First, the government should accelerate efforts to diversify supply chains and reduce dependence on China. “We need to look for alternative supply sources from countries like India, Vietnam, or other ASEAN countries,” he added.
Secondly, the government must strengthen support for local companies, especially SMEs (Small and Medium Enterprises), by providing financial incentives and assistance to mitigate the impact of these tariff increases. “We must ensure that our domestic economy continues to grow, and this requires direct support for the affected sectors,” he emphasized.
Additionally, Malaysia should continue to strengthen trade cooperation with major countries like Japan, South Korea, and European nations to reduce the impact of the ongoing trade war. “The government needs to improve trade relations with more stable partners who are not affected by the global tensions,” said Dato G Kumaar.
Opportunities for Economic Transformation
However, amidst these challenges, Dato G Kumaar Aamaan sees an opportunity for Malaysia to accelerate its economic transformation. “This is the perfect time for Malaysia to focus on developing the technology and innovation sectors, as well as strengthening the digital economy,” he said. Malaysia, he added, should use this opportunity to become a digital economy hub in Southeast Asia.
In conclusion, Dato G Kumaar Aamaan emphasized that Malaysia must be prepared for the potential negative effects of Trump’s new tariffs. “If we do not act quickly, our economy will suffer severely, and more people will lose their jobs. Immediate action from the government and the private sector is required to protect the stability of our country’s economy and the future of Malaysians.”