Economy Won T Go Into Recession Says Anwar

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Prime Minister Anwar Ibrahim, in video broadcast on the US tariff police, said the mid- to long-term impact would be challenging.
PETALING JAYA: Prime Minister Anwar Ibrahim has given an assurance that Malaysia’s economy remains resilient and will not slip into a recession following the imposition of tariffs by the United States.
However, the economic growth forecast of 4.5% to 5.5% for this year would need to be reviewed, he said in a video broadcast on the US tariff, Bernama reported.
He reiterated that Malaysia will not introduce retaliatory tariffs after the US imposed a so-called “reciprocal tariff” of 24% on Malaysian goods imported by the US.
Anwar, who is also finance minister, said Malaysia’s positive macroeconomic fundamentals were well supported by its robust household spending, strong domestic investment, healthy tourism receipts and the continued implementation of national masterplans.
“The sound economic foundation would enable the country to weather the challenge “from a position of strength and preparedness”, he said.
He said the mid- to long-term impact would be challenging. However, efforts for a fair solution were already under way, including the establishment of the national geo-economic command centre, which he chairs.
Anwar said some exemptions to the US tariff regime partially shield semiconductors, Malaysia’s largest exports to the US,. “However the new tariffs will still adversely impact many of our Malaysian industries including textiles, furniture, rubber and plastics,” the prime minister said.
“We affirm our determination to overcome and adapt to this challenge,” he said. “Make no mistake, we are taking these tariffs seriously because it challenges the fundamental principle underpinning global trade rules.”
The tariffs would affect the livelihoods and economic security of countless Malaysians who depend upon open and fair access to international markets, he said.
Last week, the US president Trump announced a range of tariffs on more than 170 countries and territories, comprising almost all US trading partners.
US customs agents began collecting a unilateral 10% tariff on all imports from many countries on Saturday, with higher levies on goods from 57 larger trading partners due to start next week.
Almost all Malaysian products will be affected by the 10% levy, while most products will face a 24% rate from April 9, with some exemptions.
Anwar said Malaysia deemed the unilateral US decision to impose tariffs as a major threat to the current global trade and investment system and a rejection of the principles of free, and open trade under the World Trade Organisation.
“This very organisation was established by, among others, the US itself in 1948 through the General Agreement on Tariffs & Trade,” he said.
47% tariff calculation flawed
Anwar said the US had inaccurately calculated the basis for the 24% tariff announced last week, describing it as “fundamentally flawed”.
He said the government would seek a favourable resolution that supports the well-being of Malaysian workers and businesses and “engage constructively with the US” to safeguard vital market access, preserve investor confidence and secure fair outcomes for the country’s exporters.
“In short, we must find a mutually acceptable, fair and equitable solution to this problem,” he said, adding that some of these efforts were already under way. - FMT

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