By Yasmin Ramlan
SHAH ALAM, Feb 13 — Malaysia aims to leverage the United States’ new tariff policies by enhancing high-value products and strengthening the labour force to sustain long-term economic competitiveness, said Economy Minister Rafizi Ramli.
He said under US President Donald Trump’s administration and its new policies, which could trigger a tariff war, Malaysia will stay vigilant and proactive in addressing emerging issues to maintain positive trade relations with the US and China.
“Malaysia is also affected as we are a major trading nation, and the US is one of our largest trading partners.
“At the government level, this issue is being managed in an integrated manner, led by Miti (Investment, Trade and Industry Ministry). We are taking a dual strategy to address it effectively,” he said in response to a supplementary question from Kampar MP Chong Zhemin during Ministers’ Question Time in the Dewan Rakyat today.
Previously, Chong asked about the impact of the tariff war between the US, Canada, and Mexico on Malaysia’s economy.
Earlier this month, Trump implemented new tariffs on imports from Canada, Mexico, and China. These include a 25 per cent duty on imports from Canada and Mexico, and a 10 per cent fee on imports from China. However, energy resources from Canada will be subject to a lower tariff of 10 per cent.
These measures aim to protect American businesses but risk escalating trade tensions with major partners like China, Canada, and Mexico, potentially disrupting global supply chains and investment flows.
Rafizi clarified that for the long term, Malaysia will focus on fiscal stability, high-value economic activities, and workforce development to sustain investment and economic growth.
“We must manage investment sentiment, stock market flows, and currency movements in the short term.
“However, billion-ringgit investment decisions that create jobs and drive economic growth for the next five, 10, or 15 years are long-term commitments.
“While long-term investment decisions may be influenced to some extent… they are primarily based on broader considerations, particularly the country’s fiscal position and our ability to produce high-value products to maximise opportunities from the ongoing tariff war,” he added.
