Malaysia Prepared To Handle Us Tariffs Says Tengku Zafrul


 
Investment, trade and industry minister Tengku Zafrul Aziz said Malaysia wants to diversify its export market, exploring opportunities in South America and Africa.
KUALA LUMPUR: Malaysia must brace itself for any potential trade and economic threats, including possible tariffs imposed by the US, says investment, trade and industry minister Tengku Zafrul Aziz.
He said Prime Minister Anwar Ibrahim, Cabinet members and the relevant ministries have been briefed on potential risks to the economy, including any tariff hikes, new taxes or even export restrictions.
“For (Malaysia) it is about mitigating (the effects of the tariffs). We want to focus on increasing intra-Asean trade, which remains quite low now.
“That is why we want to upgrade the Asean Trade in Goods Agreement (Atiga) and the Digital Economic Framework Agreement (Defa).
“We also want to diversify our export markets. We’re looking at South America and Africa.
“We are also trying to renegotiate the free trade agreement with the European Union and the Gulf Cooperation Council,” he said during a panel discussion at the China Conference: Southeast Asia 2025 here today.
Atiga is a regional trade agreement aimed at achieving the free flow of goods among Asean member states, which would reduce trade barriers, enhance economic linkages and promote a more integrated market within the region.
Meanwhile, Defa aims to transform the region into a leading digital economy by fostering greater digital cooperation, enhancing trade growth and ensuring a safe online environment, with the goal of unlocking US$2 trillion (RM8.8 trillion) in the digital economy by 2030 through comprehensive negotiations among member states.
Tengku Zafrul also said Malaysia and Asean must remain positive in navigating the risk of US tariffs, adding that his ministry was focussed on engaging with regional authorities and leaders on the matter.
“Asean has its strengths. We are a large economic group as well. You cannot put every country or every bloc in the same position as others; you can’t have war with everyone.”
The minister added that US-imposed tariffs would be among the main topics of discussion during the 31st Asean economic ministers’ retreat in Johor next week.
Earlier today, Tengku Zafrul said Malaysia’s steel and aluminium industry will not be severely impacted by the 25% US trade tariffs imposed on the sector. - FMT


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