Kuala Lumpur:Malaysia continues to benefit from tariff exemptions for its semiconductor exports to the United States, as stated by the Investment, Trade and Industry Minister, Datuk Seri Johari Abdul Ghani.

According to BERNAMA News Agency, there has been no indication from Washington that tariffs will be imposed on Malaysia's semiconductor sector. Johari mentioned this during a press conference at the European Union-Malaysia Business Day 2026 event.

Negotiations with the US under Section 301 have been focused on four key issues forced labor, excess production capacity, environmental standards, and government subsidies. Johari assured that Malaysia complies well with environmental standards and state subsidies. The issue of forced labor has been settled, with Malaysia subject to a 10 percent rate, unlike the 12.5 percent applied to other countries. However, the matter of excess capacity remains unresolved, with Malaysia seeking further clarification from the US regarding third countries contributing to this issue.

Access to international markets hinges on meeting each country's regulations, Johari noted, using the European Union's strict environmental requirements as an example. The EU-Malaysia Business Day 2026, part of the Selangor International Business Summit, aims to enhance business ties and investment opportunities, highlighting sectors such as advanced manufacturing and green transition.

EU Commissioner for International Partnerships, Jozef Sikela, emphasized the importance of investing with Malaysia to strengthen the semiconductor ecosystem. He highlighted the potential of the Lumut Maritime Industrial City as a collaborative opportunity, amidst ongoing negotiations on the Malaysia-EU Free Trade Agreement (MEUFTA).