PETALING JAYA: US duties on solar panels from Malaysia and three other Asean countries will disrupt production planning among solar manufacturers and force companies to reconsider ongoing or planned investments, says a manufacturers’ group.
In a Bernama report, Federation of Malaysian Manufacturers (FMM) president Soh Thian Lai said Malaysia had long served as a key hub in the global solar supply chain by producing solar photovoltaic (PV) products – especially cells and modules – for export to major markets like the US and Europe.
He said the duties may force some factories to suspend production, delay expansion plans, or relocate to avoid punitive cost pressures.
“This poses serious implications for Malaysia’s standing as a clean energy manufacturing destination,” said Soh.
On Monday, the US imposed new import duties on solar panels from Malaysia, Vietnam, Cambodia and Thailand.
Cambodian companies faced duties of up to 3,521%, Vietnam 395.9%, Thailand 375.2%, while Malaysia saw a countrywide rate of 34.4%.
Soh explained that instead of being imposed as blanket tariffs on all imports from the region, the duties on solar panels are applied to specific companies based on findings of unfair pricing or subsidies.
Stating that Malaysia’s solar industry was significantly exposed to US trade action given its dependence on exports, he said the extent of the impact depends on whether manufacturers cooperated with the US Department of Commerce’s investigation.
“Companies that fully cooperated and provided the necessary documentation may receive a lower duty,” said Soh.
“In contrast, non-cooperating producers face the risk of being assigned the highest rates, reinforcing the critical importance of active participation in trade remedy processes to safeguard Malaysia’s interests and commercial viability.”
Meanwhile, Malaysia Semiconductor Industry Association (MSIA) president Wong Siew Hai said the impact on local Malaysian solar companies might not be that significant as solar panels were mostly produced by Chinese companies that had invested in Malaysia.
Stating that these Chinese companies might have to move their production to more “neutral” countries which have lower duties, Wong also noted that some Chinese companies that manufactured solar panels wound up their production in Malaysia last year due to fewer orders.
Source: https://www.freemalaysiatoday.com/category/nation/2025/04/23/us-solar-duties-threaten-malaysias-role-in-global-clean-energy-sector-says-fmm