Malaysia Faces Long-Term Economic Impact from US Tariffs, Warns Minister

Malaysia is preparing for a long-term economic impact due to US President Donald Trump's tariffs, which could affect many of its trading partners and investment flows. Minister of Investment, Trade and Industry, Tengku Zafrul Abdul Aziz, emphasized the need for a proactive approach to mitigate the tariffs' effects, including setting up a task force for stakeholder feedback and engagement with US officials. The Malaysian International Chamber of Commerce and Industry (MICCI) warns that these tariffs could result in up to 50,000 job losses, particularly in vulnerable sectors like electronics and automotive parts. MICCI has proposed the formation of a Tariff Mitigation Council and a five-point response strategy to safeguard jobs and industries. The Malaysian government is also reviewing its GDP growth targets and adapting its economic strategies in response to increased trade pressures. The overall vulnerability of Malaysia's economy, which relies heavily on trade, necessitates urgent action to maintain competitiveness.