50 000 Jobs Could Be Lost Says Business Chamber


 
Key industrial sectors at risk include electronics, gloves and automotive parts, says the Malaysian International Chamber of Commerce and Industry. (Bernama pic)
PETALING JAYA: Up to 50,000 jobs could be lost in Penang, Johor and the Klang Valley because of the 24% tariff to be imposed on Malaysian goods exported to the US, says the head of a business group.
Key industrial sectors at risk include electronics, gloves and automotive parts, where export-related production could decline significantly, affecting small and medium-sized enterprises, said Christina Tee, president of the Malaysian International Chamber of Commerce and Industry.
“This 24% tariff will have a far-reaching impact, not only on electronics manufacturing and services, but also on palm oil, medical devices, automotive parts, textiles and more,” she said, according to Berita Harian.
“With over 65% of our gross domestic product linked to trade, Malaysia’s economy is highly vulnerable to such shocks,” she said.
Tee said the tariff risks making Malaysia’s exports uncompetitive in the US, forcing businesses to re-evaluate contracts, restructure operations or even move production overseas.
She said Malaysia could not remain passive, while other regional economies actively seek exemptions or relief. Putrajaya needs to act quickly to protect industries, jobs and global competitiveness.
She also called for the establishment of a tariff mitigation council, to be co-chaired by the investment, trade and industry ministry, with her business chamber to lead coordination at the national level.
She also proposed the formation of a bilateral working group under the Malaysia-US trade and investment agreement and the provision of access to technical advisory services for affected exporters. - FMT


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