Malaysia To Cut Growth Outlook Discuss Fair Trade With Us

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 Finance minister II Amir Hamzah Azizan says the country will highlight its important role in global supply chains, particularly for semiconductors and US firms producing goods in Malaysia.
Finance minister II Amir Hamzah Azizan said the government will release its revised economic outlook in the coming months. (Bernama pic)WASHINGTON: Malaysia is revising down its growth outlook as tariffs weigh on the economy, while seeking a “fair” deal in trade talks that kick off with US officials this week, according to finance minister II Amir Hamzah Azizan
The government is reviewing its official growth projection of 4.5% to 5.5% for 2025 after the US imposed levies earlier this month, creating uncertainty for investment and trade, Amir said.
“What’s transpired over the past three weeks has been probably a lot harder than what people anticipated,” he said in an interview during the IMF-World Bank spring meetings in Washington on Thursday. “It is likely that global trade will come down. The key question is: how deeply?”
The government is revising the economic outlook and will release it in the coming months, Amir said.
Malaysia grew at a slower-than-expected pace in the first quarter, even before the US announced tariffs on trading partners. The International Monetary Fund expects the Southeast Asian economy to expand 4.1% this year.
Malaysia aims to begin trade talks with the US on Thursday, seeking to avoid a 24% “reciprocal” tariff from the world’s largest economy that is currently on hold for 90 days.
Investment, trade and industry minister Tengku Zafrul Aziz is scheduled to meet with US Trade Representative Jamieson Greer. It will be the latest Asian nation to begin official discussions with the US, joining Japan and Vietnam.
Malaysian officials plan to highlight to US counterparts the country’s important role in global supply chains, particularly for semiconductors and US firms producing goods in Malaysia, Amir said. And while the Asian nation has an overall trade surplus with the US, the trade in services is in deficit.
“We must be prepared to look at what we can, so long as it doesn’t disrupt the economic structure within the country,” he said, adding that erasing the trade gap would be difficult, and declining to say whether the nation would offer to buy more US goods.
“Let’s put it all on the table and discuss what’s fair or what’s not fair.”
Malaysia is prepared to weather growth hits, he said, pointing to fiscal spending room and increased investment from government-linked firms. Despite a decline in oil prices, the nation still plans to go ahead with petrol subsidy reforms in mid-2025, with a two-tier system where only the wealthiest 15% in the country pay market rates.
Amir said the country can also boost regional coordination and trade as global headwinds mount. Prime Minister Anwar Ibrahim, who doubles as finance minister, has said that Malaysia, the current Asean chair, will lead efforts to coordinate a regional response by Southeast Asia toward US tariffs. - FMT

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