Kuala Lumpur: Malaysia should not panic or hastily make decisions regarding the recent imposition of a 24 per cent reciprocal tariff by the United States on Malaysian goods, Finance Minister II Datuk Seri Amir Hamzah Azizan has advised. He emphasized the importance of taking time to assess the impact on local industries and inflation before making any moves.
According to BERNAMA News Agency, Amir Hamzah noted that the tariff announcement by US President Donald Trump is still fresh, and Malaysia needs to carefully analyze the existing issues. He stressed the significance of maintaining dialogue with the US to explore potential solutions, expressing hope that ASEAN meetings could facilitate collaboration and consensus among partner nations.
Amir Hamzah’s comments came as a response to inquiries about the effect of US tariffs on Malaysia’s inflation forecast for the year. Bank Negara Malaysia (BNM) has projected inflation to be between two and 3.5 per cent, factoring in potential subsidy adjustments.
“Our economy remains vibrant, and while some inflationary pressure is natural with strong economic activity, we have yet to account for additional pressures from the tariffs,” Amir Hamzah stated. He added that a joint council, led by Prime Minister Datuk Seri Anwar Ibrahim, is tasked with guiding the government’s response to these challenges.
BNM Governor Datuk Seri Abdul Rasheed Ghaffour also attended the session, where Amir Hamzah disclosed that upcoming discussions would involve regional finance ministers and central bank governors. The Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Aziz, is set to meet with international counterparts, while the Prime Minister will engage with ASEAN Heads of State.
BNM reports that the inflationary impact from domestic policy measures and tax adjustments, such as the targeted rationalization of RON95 subsidies and sales and services tax expansion, is anticipated to be temporary. The central bank projects inflation to rise to between two and 3.5 per cent this year, but expects it to remain controlled due to easing global cost pressures and stable demand.
The Malaysian economy is forecast to grow between 4.5 and 5.5 per cent in 2025, driven primarily by domestic demand and stable private sector spending amidst external uncertainties.