Us Tariffs Can Be A Major Blow To Malaysia Says Tok Mat


 
Foreign minister Mohamad Hasan described the US move to impose a 25% trade tariff as a form of ‘reshoring’ – the practice of bringing business operations back to the country.
PETALING JAYA: US president Donald Trump’s decision to impose a 25% tariff on automotive, semiconductor and pharmaceutical imports could deal a heavy blow to Malaysia, according to foreign minister Mohamad Hasan.
Mohamad, better known as Tok Mat, said that 60% of Malaysia’s trade with the US consists of electrical and electronic exports.
“This (the tariffs) will be a significant setback if we cannot resolve the issue quickly.
“That is why, as I mentioned in this esteemed House yesterday, Asean is planning to hold a special Asean-US summit to present this matter to the new US administration.
“We need to discuss how Asean nations can collectively voice their concerns to ensure the proposed tariffs do not burden our economies,” he told the Dewan Rakyat during the question-and-answer session, reported Bernama.
Mohamad described the US move as a form of “reshoring” – the practice of bringing business operations back to the country.
“Through reshoring, they are imposing high taxes to encourage major companies operating abroad to return and establish operations within the US,” he added.
In response to Manndzri Nasib (BN-Tenggara) asking how Malaysia could leverage the second Asean-Gulf Cooperation Council (GCC) summit and the Asean-GCC-China summit to enhance economic, trade and investment cooperation at both national and regional levels, Mohamad emphasised the need for collaboration among the three blocs.
“China is the world’s largest market, the GCC nations have substantial capital and Asean is rich in natural resources.
“If these three blocs can negotiate together, we can strengthen intra-Asean economic growth and position the region as the world’s fourth-largest economy by 2030.” - FMT


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