Kuala lumpur: The Ministry of Investment, Trade, and Industry (MITI) is closely monitoring the possible influx of cheap goods into Malaysia following the US decision to increase import tariffs on several products, including furniture, pharmaceuticals, and semiconductors.
According to BERNAMA News Agency, MITI Minister Tengku Datuk Seri Zafrul Abdul Aziz indicated that the US’s move to impose higher tariffs could lead producing countries to redirect their exports to other markets, such as Malaysia. “When the US market becomes less attractive due to high tariffs, producers from the affected countries may seek alternative markets, including the ASEAN region and Malaysia, to maintain their production activities and avoid surplus stock,” he mentioned during a session in the Dewan Rakyat today.
Tengku Zafrul noted that this potential trade diversion could result in an influx of lower-priced goods into the Malaysian market, putting pressure on market prices and affecting the competitiveness of local producers. MITI is tasked with protecting local industries from unfair trade practices through trade remedy measures like countervailing and anti-dumping duties.
His comments came in response to a query from Lim Guan Eng (Bagan-PH), who requested clarification on protection measures for industries affected by the US tariffs, including the risks of dumping and its impact on trade value and GDP growth. “When tariffs are raised, producers will look for alternative markets to offload their surplus. Malaysia could become one of those destinations,” Tengku Zafrul noted.
He highlighted that sectors such as furniture, pharmaceuticals, and semiconductors are expected to be significantly impacted, as the United States is a major export market for these industries. “The increase in US tariffs directly impacts Malaysia’s exports in these sectors. If dumping occurs, local producers will face price pressures and a loss of competitiveness,” the minister stated.
MITI will take necessary actions if there is evidence of goods entering the country at unreasonable prices or involving unfair trade practices, including anti-dumping measures and countervailing actions. Tengku Zafrul emphasized that ongoing monitoring will ensure swift action if there is a notable rise in cheap imports.