Malaysia's Investment, Trade and Industry Minister Zafrul Aziz confirmed the country's commitment to continuing trade growth amid rising tariff tensions with the US.
Expected Trade Growth in 2025
Minister Zafrul Aziz reported that Malaysia is expected to achieve a trade growth of 4-5% in 2025, despite significant economic uncertainties and the threat of new tariffs. He emphasized that the country's exporters are already adapting to the evolving circumstances.
Export Decline Ahead of Tariff Deadline
Recent data revealed that Malaysia’s exports fell in May 2025 for the first time since September 2024, raising concerns about the country's dependence on global trade policy. The US administration announced a 24% tariff on a range of goods including semiconductors and palm oil, subsequently increasing it to 25%, putting additional pressure on exports.
Diplomatic Efforts by Malaysia
As the tariff deadline approaches, Malaysia has initiated diplomatic efforts to cushion or dodge the harshest tariffs. The US is seeking to eliminate caps on foreign ownership in strategically important sectors such as logistics and telecommunications. Zafrul stated that the government is open to considering liberalization but only if it is strategically beneficial for the country's long-term interests.
Malaysia is demonstrating its commitment to strengthening its trade position amidst challenging economic realities, with diplomatic efforts potentially having a significant impact on the future of the country’s economy.
