Malaysia strengthens response to US tariffs, focuses on strategic industries
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the government's establishment of the National Geoeconomic Command Centre (NGCC) would play a key role in monitoring, evaluating, and coordinating responses to shifts in the global trade landscape, including tariff shocks and non-tariff barriers.
"This effort aims to ensure that the country's strategic and economic industries remain resilient and competitive in an increasingly challenging and uncertain global environment," he said in the Dewan Rakyat, responding to a question from Mohd Syahir Che Sulaiman (PN-Bachok).
Mohd Syahir enquired about the government's steps to address the US tariff issue with the involvement of state governments to coordinate investment responses, restructure state incentives, and help local industries adapt to a more challenging trade environment.
Meanwhile, Tengku Zafrul said that on May 5, Prime Minister Datuk Seri Anwar Ibrahim convened a Special Parliament Session on US retaliatory tariffs, during which several incentives were announced to support the small and medium enterprise (SME) sector.
Among these, the government has allocated RM20 million to the Malaysia External Trade Development Corporation to help SMEs penetrate new markets.
"The easy financing fund has also been increased by RM500 million through development financial institutions (DFIs) for the benefit of affected SMEs," said Tengku Zafrul.
Additionally, the government has raised its guarantee facility under the Business Financing Guarantee Scheme (SJPP) by RM1 billion, specifically to assist SME exporters in obtaining loans.
The Ministry of Finance has also spearheaded the Government-linked Enterprises Activation and Reform Programme (GEAR-uP) with funds totalling RM25 billion to drive high-growth and high-value sectors.
Tengku Zafrul noted that since US President Donald Trump announced the imposition of retaliatory tariffs on Malaysia and other trading partners on April 1, 2025, the government has made a strategic decision not to respond with retaliatory measures, opting instead to negotiate with the US administration.
The Prime Minister has assured that in pursuing a reciprocal trade agreement, the government will not compromise on matters related to national sovereignty.
"Although we are proactive, firm, and open in our negotiations with the US, we have several 'red lines' that were recently agreed upon by the new Cabinet," he said.
These include the Bumiputera policy on ownership of local industries and strategic sectors, priority for local and Bumiputera companies in government procurement, adherence to halal guidelines recognised by the Department of Islamic Development Malaysia (Jakim), and the protection of intellectual property rights.
"We will continue to engage with the US in a careful, transparent, and professional manner to ensure that every decision made benefits the people and supports balanced economic development," added Tengku Zafrul.
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