KUALA LUMPUR, Aug 1 — The United States’ decision to reduce the tariff on Malaysian exports to 19 per cent from 25 per cent is a significant achievement and stems from Malaysia’s thorough and methodical negotiating process, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
Tengku Zafrul emphasised that Malaysia had stood firm on various “red line” items, and the 19 per cent rate was secured without compromising the nation’s sovereign right to implement key policies supporting socio-economic stability and growth.
“This positive outcome follows sustained engagement between both governments through various bilateral platforms and reflects the high degree of Malaysia-US complementarity in trade and investment for over 60 years,” he said in a statement.
He also noted that the lower rate is broadly in line those set for other Southeast Asian countries.
The Malaysia-US tariff negotiations started May 6 and conclude July 31.
Tengku Zafrul added that the Investment, Trade and Industry Ministry (Miti) has been working closely with Bank Negara Malaysia to assess the impact of different tariff levels on the nation’s gross domestic product.
“In managing the impact of the 19 per cent tariff, Miti will continue to collaborate with ministries and agencies to mitigate its effects on exports, encourage exporters to fully utilise Malaysia’s 18 free trade agreements, and diversify and expand export markets. We will continue implementing industrial reform programmes,” he said.
“This aligns with key national policies such as the New Industrial Master Plan 2030, the Green Investment Strategy, and the National Semiconductor Strategy, all of which are aimed at helping Malaysian companies transform operations by enhancing efficiency, embracing automation, and boosting overall productivity.”
On the global economic outlook, Tengku Zafrul acknowledged that it has become increasingly uncertain since March, driven by shifting trade policies, tariff uncertainties, and rising geopolitical tensions.
“As an open trading economy, Malaysia’s growth prospects are closely linked to these external risks. Nonetheless, Miti has consistently emphasised that Malaysia is confronting these challenges from a position of strength and resilience, with robust domestic demand supported by ongoing policy measures and sustained industrial and economic reforms,” he said.
He also said Miti and other ministries and agencies will conduct targeted outreach programmes on the implementation of the revised tariff rate for Malaysian exports to the US.
