US tariffs: Anwar urges reforms, closer ASEAN and partner ties

The Sun

22-05-2025

PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim said Malaysia is prioritising domestic economic reforms before expanding partnerships through ASEAN, key regional players such as China, India and Pakistan, and strengthening ties with the European Union (EU) to address the impact of the United States' (US) tariff policy changes.
He said the EU had been quite dramatic in its decision to engage more aggressively and actively with ASEAN.
Anwar added that Malaysia had initiated early engagement with the US, represented by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, who held initial discussions with US Secretary of State Marco Rubio on the tariff issue.
The talks, he said, were positive and offered a platform to clarify Malaysia's trade position.
'There was a follow-up meeting — as you know, in (South) Korea — and, amazingly, we have seen this statement by ASEAN, China, Japan, (South) Korea — which, in my mind, is very positive because it shows that we are prepared to consider the matter and openly promote multilateralism.
'But at this stage, it is a bit too early. Secretary Rubio had a long session with the Foreign Minister (Datuk Seri Mohamad Hasan). I also spoke with him, but beyond that, the US has promised to consider it sympathetically and give us a boost,' he said here on Wednesday (May 21).
Anwar said this during a briefing session related to the ASEAN Summit 2025 with editors-in-chief of local and international media at the Seri Perdana Complex.
Also present were Malaysian National News Agency (Bernama) chief executive officer Datin Paduka Nur-ul Afida Kamaludin, Bernama editor-in-chief Arul Rajoo Durar Raj, and Bernama Economic News Service executive editor Saraswathi Muniappan.
Anwar said it was still too early to assess the full impact of the US tariff changes but added that Malaysia would continue to monitor developments and respond accordingly.
He reaffirmed Malaysia's commitment to remaining a trading nation and said that, in addition to traditional partners such as China and the US, the country is exploring new markets, including engagement with Russia.
Malaysia will also participate in the upcoming BRICS Summit in Rio de Janeiro, Brazil, on July 6–7.
Anwar noted that Malaysia's semiconductor sector has so far remained unaffected by the US tariffs, describing it as 'the most positive' area amid increasing global trade uncertainty.
'On semiconductors, the US, for now, has excluded them from the tariffs. That's the most positive sign. But of course, anything can change tomorrow or even tonight, depending on the (US) President. For now, we're safe,' he said.
However, Anwar said Malaysia is closely monitoring the situation, particularly as 60 per cent of its exports go to the US.
'We are taking this very seriously. We understand that 60 per cent of our products are exported to the US. It's huge... and we believe action needs to be taken,' he said.
He also noted that despite a slowdown in some countries, global tech giants including Microsoft, Google and Nvidia continue to invest in Malaysia's semiconductor sector.