Malaysia is taking proactive steps to safeguard its trade and investment ties with the United States to prevent potential tariff hikes that could impact key export sectors, said Minister of Investment, Trade and Industry Tengku Zafrul Aziz.
He noted that the US remains Malaysia’s third-largest trading partner, with total trade amounting to RM324.9 billion in 2024. Exports to the US stood at RM198.6 billion, making up 13.2% of Malaysia’s total exports, while imports reached RM126.3 billion, or 9.2% of total imports. The US is also a major investor, with over 600 American companies operating in Malaysia.
“To ensure Malaysia is not subjected to tariff increases like those imposed on China, Canada, and Mexico, the government is committed to maintaining and strengthening our trade and investment ties with the US,” Tengku Zafrul said in Parliament.
He emphasised that Malaysia’s neutral stance in the ongoing US trade disputes with other countries would help preserve its position as a reliable trade and investment partner. This includes fostering a business-friendly investment ecosystem, implementing effective export control regulations, and ensuring compliance with international trade standards.
Semiconductors remain a critical component of Malaysia’s exports, with electrical and electronics (E&E) products accounting for nearly 40% of total exports in 2024. Of this, RM387 billion, or 64%, consisted of semiconductor products. The US was among the top three destinations for Malaysia’s semiconductor exports last year.
Tengku Zafrul assured that Malaysia has not been subjected to tariff hikes at present, and the risk of negative effects on semiconductor exports remains minimal. He also highlighted the continued strength of US investments in Malaysia, with US firms committing RM5.1 billion in investments in the third quarter of 2024.
Malaysia’s trade resilience is further reinforced by the Memorandum of Cooperation (MoC) on Semiconductor Supply Chain Resilience signed with the US in May 2022. “This ongoing cooperation reflects our shared commitment to strengthening the global semiconductor supply chain and solidifying Malaysia’s economic and strategic ties with the US,” he added.
With these measures in place, Tengku Zafrul expressed confidence that existing US investors would maintain and expand their presence in Malaysia, ensuring continued growth in the sector.
Tengku Zafrul answered this in a QnA session following up a question by Kubang Pasu MP, Datuk Dr Ku Abd Rahman.
Source: https://www.businesstoday.com.my/2025/02/06/tengku-zafrul-us-malaysia-trade-ties-remain-strong-amid-global-uncertainty/