Malaysia to empower local firms amid US tariff hike, says Liew
The Deputy Investment, Trade and Industry (MITI) Minister said this was part of efforts to create a resilient ecosystem that allows Malaysian companies to reap spillover benefits and develop into technology-based multinational corporations (MNCs).
'To ensure investments lead to meaningful gains such as quality jobs for Malaysians and the development of local technology ecosystems, MITI and the Finance Ministry will introduce the New Investment Incentive Framework (NIIF) in the third quarter of this year,' he said in Parliament on Wednesday (Aug 6).
Liew added that the government is committed to transforming Malaysia's role in global supply chains by strengthening national resilience and nurturing homegrown tech firms in strategic sectors such as semiconductors.
'There must be a mindset shift. For too long, MSMEs have been seen only as support players for foreign MNCs.
'The new thinking emphasises the potential of Malaysian firms to become global technology-based MNCs,' he said.
Liew stressed that the government is determined to lead the shift from being a hub for 'Made in Malaysia' outsourced production to 'Made by Malaysia' technological innovation.
He also pointed to the RM25bil GEAR-uP programme under the Finance Ministry, which aims to catalyse high-growth, high-value (HGHV) sectors such as semiconductors and energy transition, while also empowering marginalised communities and nurturing local talent.
On United States trade policy, Liew described the 19% retaliatory tariff rate on Malaysia as a success, saying that Malaysia had engaged in 'complex and time-sensitive' negotiations to secure the agreed rate.
'The government is confident that early interventions and robust mitigation planning will reduce the negative impact of the retaliatory tariffs imposed by the US,' he said.
Malaysia's exports to the US accounted for 13.2% of the country's total exports in 2024, which amounted to RM1.508 trillion, he added.
To mitigate the effects of the US tariffs, he said MITI and its agency Matrade are working to diversify Malaysia's export markets.
This includes exploring non-traditional destinations and strengthening the export network to fast-growing emerging markets such as Central Asia, South Asia, the Middle East, Africa and Asean.
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