Malaysia Must Build Resilient Exports, Not Rely On US Tariff Relief
KUALA LUMPUR, May 14 (Bernama) -- Malaysia must build more resilient export capabilities rather than relying on the United States' (US) temporary tariff relief, said Economic Minister Akmal Nasrullah Mohd Nasir.
US President Donald Trump has announced a 10 per cent global tariff under Section 122 of the US Trade Act of 1974 after the US Supreme Court nullified his previous trade policies.
Section 122 authorises the US president to impose temporary import surcharges of up to 15 per cent or quotas for no more than 150 days.
"We are aware that those decisions have benefited Malaysia from the perspective of a lower trade-weighted tariff since nearly half of Malaysia’s exports, particularly electronics and machinery, are exempted from the levy.
"While this has improved Malaysia's relative competitive position compared to regional peers, it is a temporary breather as the future is still uncertain after July 24 when Section 122 expires," he said after launching the 32nd Malaysia Economic Monitor (MEM): Raising the Ceiling, Raising the Floor: The Jobs Agenda as a Productivity Agenda.
He emphasised that to mitigate the risks associated with the impending expiration of Section 122, Malaysia needs to move into higher-value, harder-to-substitute segments of the electrical and electronics sector where competitiveness is driven by technological capability instead of tariff differentials.
"To achieve this, Malaysia needs to significantly increase investment in research and development, foster indigenous innovation, and address broader gaps in its legal and business environments," he said.
Akmal Nasrullah said that Malaysia will intensify efforts to expand global trade networks and strengthen economic integration to enhance the competitiveness of “Made by Malaysia” products and services.
"By broadening the market access, Malaysia reduces over-reliance on traditional trading partners whilst building a more balanced and diversified trade portfolio.
“Ultimately, this ensures that Malaysia not only withstand external shocks but emerge stronger, more competitive, and better positioned to deliver sustainable, inclusive, and high-quality growth for the rakyat," he added.
-- BERNAMA