MADANI Govt Taking Firm Steps To Address Impact Of US Tariffs -- Tengku Zafrul

KUALA LUMPUR, April 7 (Bernama) -- The MADANI government is putting in place strong measures to mitigate the United States (US) tariffs’ impact on Malaysia, according to Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said several steps are being taken by the government, including the Ministry of Investment, Trade and Industry (MITI), to address the implications of the tariffs imposed by the US.

“Among the measures is the activation of the National Geoeconomic Command Centre (NGCC). MITI is currently conducting a sectoral impact study focusing on key export sectors to the US, and the findings will be presented to the NGCC, which is expected to convene soon,” he told a press conference on the impact of US tariffs here today.

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Tengku Zafrul said MITI has also established a Task Force on Managing US Tariffs, aimed at gathering feedback from key stakeholders, including representatives from the private sector. 

The task force seeks to minimise the impact of the unilateral US action on Malaysia’s exports and investments, he said.

“Tomorrow, MITI will be meeting representatives of industry chambers and export associations as well as engaging with relevant ministries and agencies such as the Ministry of Finance, Ministry of Economy, Bank Negara Malaysia, Malaysia External Trade Development Corporation (MATRADE), Malaysian Investment Development Authority and the Department of Statistics Malaysia.

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“We will leave no stone unturned in considering all options to ensure the well-being of our industries, businesses and people,” he added.

Meanwhile, at the ASEAN level, Tengku Zafrul said he will chair a Special ASEAN Economic Ministers’ Meeting on April 10 to deliberate on the broader implications of US tariff measures on regional trade and investment flows, macroeconomic stability and ASEAN’s coordinated response. 

Subsequently, he said, ASEAN leaders are scheduled to meet to discuss the member states’ way forward and to mitigate potential disruptions to regional trade, supply chain networks and cross-border investments.

Tengku Zafrul said the next measure to be taken is the continuation of high-level strategic engagement with the US, leveraging the Malaysia-US Trade and Investment Framework Agreement (TIFA).

“MITI is also considering the establishment of a tech safeguard agreement to protect Malaysia’s semiconductor and aerospace exports, while sectoral exemptions will be negotiated.

“This morning, I met with the US Ambassador and his team, and we will continue negotiating with the US,” he said.

Domestically, Tengku Zafrul said, efforts are underway to strengthen and diversify Malaysia’s export markets. 

“MATRADE has proactively expanded Malaysia’s export reach to regions such as the Middle East (including through the Malaysia International Halal Showcase or MIHAS), Africa, and South America,” he said.

Efforts at MITI’s policy level include increased utilisation of existing free trade agreements (FTAs).

He said among FTA-related initiatives are the signing of the Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates on Jan 14, 2025, which is projected to increase bilateral trade by 60 per cent within five years, the resumption of FTA negotiations with the European Union and FTA negotiations with South Korea.

Other initiatives include the upgrading of the ASEAN Trade in Goods Agreement (ATIGA) during Malaysia’s ASEAN chairmanship in 2025, along with other ASEAN FTA upgrades, including with China and India, and negotiations on the Malaysia-European Free Trade Association (EFTA - Iceland, Liechtenstein, Norway dan Switzerland) Economic Partnership Agreement.

-- BERNAMA