Kuala Lumpur: Prime Minister Datuk Seri Anwar Ibrahim has assured that Malaysia will not slip into a recession despite the imposition of tariffs by the United States, emphasizing the resilience of the country’s economy. Anwar highlighted that Malaysia will not introduce retaliatory tariffs in response to the US measures.
According to BERNAMA News Agency, Anwar stated that if the 24 percent tariff were implemented, the projected GDP growth for 2025, initially estimated between 4.5 to 5.5 percent, would need reassessment. However, he reassured that the government does not foresee a recession in Malaysia at present. The Prime Minister, who also serves as Finance Minister, underscored Malaysia’s strong macroeconomic foundations, supported by robust household spending, domestic investment, healthy tourism receipts, and national masterplans.
Anwar expressed confidence in Malaysia’s ability to face the challenges posed by President Donald Trump’s tariffs, which impact 168 countries and have triggered a global trade conflict. Beginning April 5, Malaysian products shipped to the US will face a minimum 10 percent duty, escalating to 24 percent for most items by April 9, with some exceptions.
Highlighting the implications for Malaysia as an open trading nation, Anwar criticized the tariffs as a threat to global trade and investment systems, which violate principles of free and open trade as established by the World Trade Organisation (WTO).
The Prime Minister acknowledged the mid-to-long-term challenges these tariffs pose, given Malaysia’s position as one of America’s largest trading partners and a major destination for US-based foreign direct investment. While some exemptions protect the semiconductor sector, Malaysia’s largest export to the US, industries like textiles, furniture, rubber, and plastics remain vulnerable.
Anwar assured that the government is committed to addressing the concerns of workers, manufacturers, and businesses affected by the tariffs. He emphasized the importance of nondiscrimination in global trade and the impact on Malaysia’s economic identity and security.
Furthermore, Anwar refuted US claims of a 47 percent tariff on US imports, calling the calculation flawed and affirming Malaysia’s calm and strategic response. The Prime Minister stated Malaysia’s commitment to securing favorable resolutions that preserve market access, attract foreign investment, and support Malaysian workers and businesses.
In pursuit of constructive engagement with the US, Anwar mentioned ongoing efforts by Malaysia’s trade and foreign ministries to analyze tariff impacts and communicate with US counterparts and American firms. Malaysia’s trade strategy involves a diversified network of regional and global partnerships, including ASEAN, CPTPP, RCEP, and ongoing negotiations with the EU.
Anwar announced the establishment of the National Geo-economic Command Centre (NGCC), which he chairs, as part of the government’s initial steps to mitigate tariff impacts.