Latest news with #TengkuZafrulAziz
Free Malaysia Today
2 days ago
- Business
- Free Malaysia Today
Tengku Zafrul officially a PKR member
Investment, trade and industry minister Tengku Zafrul Aziz is now a member of PKR's Ampang division. (Bernama pic) OSAKA : Tengku Zafrul Aziz has confirmed that his application to join PKR was accepted two weeks ago. The investment, trade and industry minister said he is now a member of PKR's Ampang division. 'I don't remember the exact date my application was accepted, but it was during a meeting of the party's central leadership council two weeks ago,' he told Malaysian media here today during a visit to the Malaysia Pavilion at Expo 2025 Osaka. On May 30, Tengku Zafrul announced his resignation from Umno.
Malay Mail
3 days ago
- Business
- Malay Mail
Tengku Zafrul picks apart Dr Mahathir's ‘clearly false' claims about US-Malaysia trade deal
KUALA LUMPUR, Aug 8 — Datuk Seri Tengku Zafrul Aziz has rebutted former prime minister Tun Dr Mahathir Mohamad's criticism of Malaysia's recent trade arrangement with the United States, saying the latter was making 'false allegations' and misrepresenting facts surrounding the deal. In an Instagram post today, the minister of investment, trade, and industry dismantled Dr Mahathir's claim that the government was overly eager about the deal and had made concessions that unfairly benefitted the US. Among others, Dr Mahathir alleged Malaysia was removing all taxes on 11,000 American products in return for a modest drop in US tariffs on Malaysian exports from 25 per cent to 19 per cent. Tengku Zafrul countered that only 60.4 per cent of the tariff lines will be zero-rated, not 100 per cent as alleged by the former prime minister. 'There's a significant difference between 60 per cent and 100 per cent, Tun,' Tengku Zafrul wrote, calling the claim 'clearly false.' Dr Mahathir also criticised a supposed commitment by Malaysia to supply unprocessed rare earth to the US at a low return. Tengku Zafrul clarified that there is no exclusive supply agreement for rare earth, nor any intention to export the material in raw form. He said Malaysia's existing policy mandates that rare earth must be processed domestically before being exported. 'Please reread the official statement, Tun,' said Tengku Zafrul, challenging Dr Mahathir to disclose the source of his claim. Tengku Zafrul further said that while criticism is acceptable, it becomes problematic when it is based on falsehoods. He also said he viewed the government's approach as a responsible effort to protect Malaysian jobs and livelihoods, rather than seeking approval. Earlier this month, US President Donald Trump announced the new 'reciprocal' tariff of 19 per cent on Malaysia, down from the 25 per cent he originally imposed, following negotiations between the two countries.
Free Malaysia Today
4 days ago
- Business
- Free Malaysia Today
Malaysian semiconductor exports remain exempt from US tariffs, says Tengku Zafrul
Investment, trade and industry minister Tengku Zafrul Aziz said his ministry is working closely with BNM to assess the full impact of the US's 100% tariff on semiconductor chips and its effect on various supply chains in Malaysia. (Bernama pic) KUALA LUMPUR : Investment, trade and industry minister Tengku Zafrul Aziz says Malaysian semiconductor exports to the US are exempted from the 100% tariff announced by US president Donald Trump yesterday. Malaysia is the world's sixth-largest semiconductor exporter, and Tengku Zafrul today said the tariff would have 'serious implications' for major exporting countries like Malaysia. 'As of now, Malaysian semiconductor exports to the US remain exempt from these retaliatory tariffs,' he told the Dewan Rakyat. 'However, this exemption is subject to review and could change at any time depending on the US administration's policy direction. Bagan MP Lim Guan Eng earlier asked Tengku Zafrul to clarify what concessions Malaysia had made in exchange for the 19% US tariff, as well as its impact on the economy and cost of living. He also inquired about the government's plans to cushion potential price increases and expressed concern over Trump's proposal to impose a 100% tariff on imported semiconductors unless companies invest in the US. Lim also asked whether Malaysia's current exemptions could be at risk. In an event at a hotel here earlier today, Tengku Zafrul said his ministry is working closely with Bank Negara Malaysia to assess the full impact of the tariff and its effect on various supply chains. He also said about 65% of Malaysia's semiconductor exports to the US come from American companies operating in Malaysia. Malaysia is the world's sixth-largest semiconductor exporter, with electrical and electronics (E&E) exports surpassing RM600 billion last year. On Monday, Tengku Zafrul told the Dewan Rakyat that semiconductor products were exempted from the 19% tariff imposed on goods from Malaysia. However, he said the US government was investigating whether extensive reliance on foreign imports of pharmaceuticals and semiconductors poses a national security threat. He noted today that 60% of Malaysia's exports to the US are in the E&E sector, and within that, 68% are semiconductors. Of that 68%, 65% are exported by American companies operating in Malaysia. Tengku Zafrul also called for more clarity on the tariffs after noting that the US government has yet to officially announce the mechanism for implementing them. He added that Putrajaya is actively engaging with American companies operating in Malaysia, especially under the American Malaysian Chamber of Commerce, to understand the implications of Trump's latest announcement. Yesterday, Trump said the 100% tariff on semiconductor imports would not apply to companies that were already producing semiconductor chips in the US or had plans to do so. 'American firms such as Intel and Texas Instruments have major operations in Malaysia and supply chains involving thousands of local SMEs, and around 7,000 local suppliers supporting 70,000 workers,' he said. 'These firms also have factories in the US, but we are seeking clarification from US authorities about whether 'investing in the US' means new investments … or whether existing facilities count. 'We need clearer answers to protect our supply chain ecosystem and to avoid disruptions.'
Reuters
4 days ago
- Business
- Reuters
Firms in Malaysia to boost tech, LNG purchases from US as part of trade deal
KUALA LUMPUR, Aug 4 (Reuters) - Multinational companies in Malaysia will buy equipment from the U.S. worth $150 billion in the next five years for the country's semiconductor, aerospace and data centre sectors, part of a deal with Washington to cut tariffs, its trade minister said on Monday. The United States announced last week that it would impose a 19% tariff on Malaysia starting from August 8, lower than a 25% levy threatened last month. State energy firm Petroliam Nasional Berhad ( opens new tab will buy liquefied natural gas worth $3.4 billion a year, while Malaysia will commit to $70 billion in cross-border investments in the United States over the next five years to address the trade imbalance between the two countries, minister Tengku Zafrul Aziz told parliament. The United States ran a goods trade deficit with Malaysia of $24.8 billion in 2024, government data showed. Tengku Zafrul said the two countries were finalising a joint statement covering the commitments made, following weeks of negotiations over the tariffs imposed by U.S. President Donald Trump's administration. "Despite expecting lower tariff rates, the ministry believes that these negotiations have succeeded in achieving a result that is reasonable with the offers made by Malaysia," Tengku Zafrul said. Other concessions by Malaysia include reducing or abolishing duties on 98.4% of U.S. imports, the easing of some non-tariff barriers, and the removal of a requirement for U.S. social media platforms and cloud service providers to contribute part of their Malaysian revenues to a state fund. Last week, Tengku Zafrul said tariff exemptions remained on Malaysian pharmaceutical products and semiconductors exported to the United States, and the government was seeking further cut-outs for commodities such as cocoa, rubber and palm oil. On Monday, however, he warned that semiconductor chips may still be subject to additional tariffs under U.S. laws based on national security reasons. "Therefore, we need to continue to be prepared for any possible additional tariffs imposed on the semiconductor industry," he said.
Free Malaysia Today
7 days ago
- Business
- Free Malaysia Today
Malaysia bracing for possible US tariffs on semiconductors
The US is investigating whether extensive reliance on foreign imports of pharmaceuticals and semiconductors poses a national security threat. (Pixabay pic) KUALA LUMPUR : Malaysia needs to remain prepared for the possibility of the US imposing tariffs on the semiconductor industry amid a review by Washington, says investment, trade and industry minister Tengku Zafrul Aziz. Tengku Zafrul told the Dewan Rakyat that 100,000 workers, especially in Penang and Kedah, may be at risk of losing their jobs if high tariffs reduce the demand for electrical and electronic goods in the US. Although semiconductor products are currently exempted from the 19% tariff imposed on goods from Malaysia, he said, the US government is investigating whether extensive reliance on foreign imports of pharmaceuticals and semiconductors poses a national security threat. 'The US could impose additional tariffs on grounds of national security,' he said in a ministerial statement on the tariffs. 'We cannot take any changes in US trade policies lightly as they will negatively impact Malaysia,' he said, stressing that the US was Malaysia's largest export destination and one of the nation's main sources of foreign investment last year. On Aug 1, the US announced a 19% tariff on Malaysian exports effective Aug 8, a reduction from the 25% tariff previously imposed. Thailand, Indonesia and the Philippines were also hit with a 19% tariff rate, while Vietnam faces a slightly higher rate of 20%. Tengku Zafrul said although his ministry had hoped for a lower rate, he believed that negotiators managed to achieve a 'reasonable outcome' without compromising the country's key policies and sovereignty. He said Malaysia and the US were still in the process of reaching an agreement on a joint statement that includes the mutually agreed upon commitments. He also said Malaysia and the US are working towards a reciprocal trade agreement to safeguard long-term cooperation and minimise the risk of punitive measures. Malaysia is the world's sixth-largest semiconductor exporter, with E&E exports surpassing RM600 billion last year.
