Malaysia pushes to reduce prices on its exports to the United States. Prime Minister Anwar Ibrahim told Parliament on Monday that the United States had agreed to continue discussions. He described negotiations as still early, but noted that they showed progress.
The United States has proposed a rate of 24% On certain goods from Malaysia from July. This would increase the price of Malaysian goods In the United States, markets and make them less competitive. Anwar said that although the discussions are still preliminary, the American authorities had agreed to continue the talks with Malaysia and that the mutual rate could be lowered.
He added that the overall economic impact is always contentable for the moment because the majority of the prices have been canceled until July.
But if Malaysia fails to conclude an agreement before July, its exports could be a significant blow. Anwar said the government was also willing to listen to concerns. Among the wrinkles are the non-pricing barriers and the Malaysia trade surplus with the United States.
Malaysia is also open to a new bilateral trade agreement with Washington.
Increasing prices lead to the economy of Malaysia
The proposed American rates are part of a broader protectionist strategy of the administration of President Donald Trump, which has also imposed measures similar to other business partners, including China and Mexico. These prices have raised concerns among global economies, in particular in Southeast Asia, where countries like Malaysia strongly depend on exports.
Malaysia economy is burned by the World Trade War. The country previously planned to grow from 4.5% to 5.5% this year. Now the government has recognized that it will not reach this target.
Anwar has informed legislators that global commercial confrontations make it difficult to satisfy previous forecasts.
This feeling was also recently taken up by the governor of the Negara Malaysia Bank (BNM), the Malaysia Central Bank. He also said that the projection of economic growth may have to be revised due to a deterioration in the global economy.
The economy depends on exports, which is increased by weak growth in the first trading partner China. Malaysia local industries suffer when global demand drops or prices increase.
Manufacturing industry, in particular, is at risk. It represents a significant part of Malaysia exports to the United States and China.
The government intends to support local industries and seek new markets to amortize the blow.
Malaysia increases regional and global trade links to compensate for American tariff risks
Economists have remained carefully optimistic about the prospects for exporting Malaysia, pointing to strong performance in certain key sectors such as electricity and electronics (E&E) and palm oil. Malaysian exports rose to RM118. 26 billion, up 6.2% compared to the same period last year. Despite this, economists say that the current trade tensions can weigh on the country's economic expansion prospects.
The International Monetary Fund (IMF) warned that reprisal prices threaten the growth of Asia and disrupt supply chains. For 2025, the global economic prospects of the IMF are planning global economic growth of 3.2%, and in the case of Asia, this growth should be a little higher to 4.4% during the same period.
Malaysia is changing now to improve relations with other world actors. Anwar said that the country will “pursue” new commercial avenues. This includes increasing trade with China and the European Union.
He also said that Malaysia would try to modernize its trade in Southeast Asia. Malaysia is the president of the Association of Southeast Asian Nations (Anase) this year. This, for Anwar, is an opportunity to direct regional dialogue on better economic cooperation.
The Ministers of Anase and China will meet on May 19. The objective is to complete the updates of the Asean-Chine free trade agreement. Such modifications would result in a drop in prices and faster customs clearance between the two areas.
Malaysia wants to develop so that it does not need to count on a single market. The impact of tariff climbing has been debilitating in the countries of the whole region, of Southeast Asia to the Pacific. Six of the 10 member countries of the Anase face 32% and 49% of American samples.
Thread difference cresure Help the crypto brands to unravel and dominate the headlines quickly
