By Nor Baizura Basri and Zarul Effendi Razali
KUALA LUMPUR, May 5 (Bernama) -- The Special Parliamentary Session on the United States (US) tariffs provided the government an opportunity to enlighten Members of the Parliament (MPs) about ongoing efforts to manage the impact of global economic uncertainty on Malaysia following the imposition of the tariffs.
The session, which lasted over five hours, started with a briefing by Prime Minister Datuk Seri Anwar Ibrahim, where he outlined the current state of the economy and how Malaysia’s strong economic fundamentals have placed the country in a relatively stable position to weather external shocks and cyclical challenges.
“Ongoing efforts to strengthen domestic economic resilience have enabled us to achieve economic stability with sufficient fiscal space. This has helped the country withstand financial and economic crises.
“The government is confident that a data-driven and well-planned policy response can address current uncertainties. Monitoring mechanisms have been activated, and targeted measures will be implemented as needed to support affected individuals and businesses,” said Anwar, who is also the Finance Minister.
He said the MADANI Government must continue planning and strategising in facing the global economic scenario to safeguard the country’s short- and medium-term economic stability and national interests.
Following Anwar’s briefing, which lasted for about 45 minutes, 23 MPs were given eight to 15 minutes each to debate the issue.
Among the proposals was a call by Datuk Indera Mohd Shahar Abdullah (BN–Paya Besar) for the government to expedite the announcement of the revised gross domestic product (GDP) forecast to help the economic sector to take relevant measures to adjust to the new scenario.
Meanwhile, Lim Guan Eng (PH-Bagan) proposed that Bank Negara Malaysia's Overnight Policy Rate be lowered by 1.0 percentage point to 2.0 per cent from the current 3.0 per cent.
Datuk Seri Hamzah Zainuddin (PN–Larut) also urged the government to conduct a study so that the country can reduce imported food and agricultural products.
During the winding-up session, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz said the government welcomed the proposal to establish a bipartisan Parliamentary Caucus to ensure transparency in negotiations with the US.
He also explained the rationale for the government’s decision to take over the issuance of the Non-Preferential Certificate of Origin (NPCO) from chambers of commerce, particularly for exports to the US, beginning tomorrow.
Tengku Zafrul also emphasised that Malaysia strongly opposes any misuse of international trade systems, including the issuance of false or misleading certificates of origin intended to bypass tariffs.
This was a response to media reports alleging that some exporters from China have attempted to evade US tariffs by "origin washing" products through third countries such as Malaysia.
Origin washing refers to the practice where companies reroute or relabel goods through third countries to hide their true origin and avoid tariffs, especially those imposed by the US on Chinese products.
This practice allows goods to circumvent import duties, creating unfair competition in the market.
-- BERNAMA
