Malaysia Should Not Panic, Rush Into Decisions Over US Tariffs – Amir Hamzah

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, April 6 (Bernama) -- Malaysia should not panic or rush into decisions regarding the impact of the 24 per cent reciprocal tariff imposed by the United States (US) on Malaysian goods, said Finance Minister II Datuk Seri Amir Hamzah Azizan.

He explained that the announcement of the tariffs by US President Donald Trump is recent, and Malaysia needs time to further assess their impact on industries and, consequently, on inflation

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"We need to analyse the existing issues and discuss them further. For now, Malaysia’s approach is to continue discussions with the US, as we believe that through dialogue, a better solution can be found.

"God willing, through meetings within ASEAN, we will find a way to collaborate with all our partners so that a consensus can be reached moving forward," he told Bernama after a 'walkabout' session in preparation for the 12th ASEAN Finance Ministers and Central Bank Governors Meeting (AFMGM) today.

Amir Hamzah made these remarks in response to a question about the impact of US tariffs on Malaysia’s inflation forecast for this year. Bank Negara Malaysia (BNM) has set the inflation projection for this year at around two to 3.5 per cent.

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He noted that the inflation forecast already takes into account the planned subsidy adjustments in the future.

"Our economy remains vibrant, so naturally, with strong economic activity, some inflationary pressure may occur.

"We have not yet factored in the additional pressures that might arise if the tariff takes effect. Under our government, a joint council chaired by Prime Minister Datuk Seri Anwar Ibrahim will provide guidance on addressing these issues," he said.

BNM Governor Datuk Seri Abdul Rasheed Ghaffour was also present at the session.

Amir Hamzah further mentioned that next week, alongside the scheduled meeting of finance ministers and regional central bank governors, the Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Aziz, will meet with his counterpart, while the Prime Minister will continue discussions with the ASEAN Heads of State.

“All countries will discuss what is important for each nation. The understanding and cooperation within ASEAN have long existed, so when we engage, we move forward together," he said.

According to BNM, the inflationary impact from domestic policy measures and announced tax adjustments, including the targeted rationalisation of RON95 subsidies and the expansion of the sales and services tax, is expected to be temporary and manageable.

The central bank noted that inflation is projected to rise to between two and 3.5 per cent this year, compared to an average of 1.8 per cent in 2024. But it is expected to remain controlled due to easing global cost conditions and the absence of excessive demand pressure.

The Malaysian economy is also forecast to grow between 4.5 and 5.5 per cent in 2025, with domestic demand being the primary driver of growth, supported by stable private sector spending despite facing external uncertainties.

-- BERNAMA