3 days ago
‘Talks ongoing amid contingency steps'
PETALING JAYA: Talks with the United States on the proposed tariff increase are still in progress, while the government has begun rolling out contingency measures such as market diversification and economic reforms, according to Malaysia's chief negotiator, Mastura Ahmad Mustafa.
She said the government is actively engaging US counterparts to seek a mutually acceptable outcome.
'It's difficult to say at this point whether we can conclude an agreement before the deadline,' Mastura, who is also the Investment, Trade and Industry Ministry's (Miti) deputy secretary-general (trade), told The Star.
At the same time, she said, negotiations with the United States are only one part of Malaysia's broader strategy to cushion the potential impact on exporters.
'With regard to the contingency plan, as has been stated on numerous occasions, engagement with the United States is not the sole measure that the government is taking to mitigate the impact.
'The government is also looking to diversify export markets and strengthen trade partnerships under Asean, the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership), the RCEP (Regional Comprehensive Economic Partnership) and other free trade agreements.
'Additionally, it aims to implement reforms to enhance national productivity and competitiveness,' the chief negotiator stated.
She added that efforts are also underway to design targeted support measures for local industry players, particularly small and medium enterprises (SMEs), to help them navigate potential disruptions and reduce over-reliance on a single market.
'These combined steps are aimed at strengthening the resilience of Malaysia's export sector and positioning the country for more sustainable, long-term growth amid an increasingly challenging global trade environment,' she said.
The United States has announced a 24% tariff on most Malaysian goods, along with a range of duties affecting around 60 countries.
However, the tariffs have been suspended for 90 days to allow for trade negotiations.
Previously, Investment, Trade and Industry (Miti) Minister Tengku Datuk Seri Zafrul Abdul Aziz said the United States had made four key demands to Malaysia in the ongoing tariff negotiations, aimed at reaching a mutually beneficial outcome.
The priorities focus on non-tariff barriers, addressing the trade deficit, safeguarding US technology and encouraging investment in American industries.
Following a market revolt after his major tariff announcement on April 2, US President Donald Trump paused most import duties for 90 days and said he would hammer out bilateral deals with trade partners.
