PUTRAJAYA – Prime Minister Datuk Seri Anwar Ibrahim said Malaysia’s semiconductor sector has so far remained unaffected by the United States’ tariff changes, describing it as “the most positive” development amid growing global trade uncertainty.
“On semiconductors, the US, for now, has excluded them from the tariffs. That’s the most positive sign. But of course, anything can change tomorrow or even tonight, depending on the (US) president. For now, we’re safe,” he said.
Anwar added that it was still too early to assess the full impact of the tariffs but stressed that Malaysia would continue to monitor developments and respond accordingly.
“We are taking this very seriously. We understand that 60% of our products are exported to the US. It’s huge… and we believe action needs to be taken,” he said.
He also noted that despite a slowdown in some countries, global tech firms including Microsoft, Google and Nvidia continue to invest in Malaysia’s semiconductor sector.
Reaffirming Malaysia’s position as a trading nation, Anwar said the country would continue to strengthen its traditional trade ties with China and the US, while also exploring new markets, including engagement with Russia.
Malaysia will also participate in the upcoming BRICS Summit in Rio de Janeiro, Brazil, on July 6 and 7.
At the same time, Anwar said Malaysia is prioritising domestic economic reforms before expanding regional and global partnerships through Asean and key partners such as China, India and Pakistan. He said efforts are also underway to enhance relations with the European Union (EU), especially in response to US trade policy shifts.
He noted that “the EU had been quite dramatic in its decision to engage more aggressively and actively with Asean.”
Anwar said Malaysia had initiated early engagement with the US on the tariff issue, led by Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz, who held discussions with US Secretary of State Marco Rubio.
The talks were constructive and provided a platform to clarify Malaysia’s trade position, Anwar said during a briefing session related to the Asean Summit 2025 with editors-in-chief of local and international media at the Seri Perdana Complex last night.
“There was a follow-up meeting, as you know, in (South) Korea – and, amazingly, we have seen this statement by Asean, China, Japan, (South) Korea, which, in my mind, is very positive because it shows that we are prepared to consider the matter and openly promote multilateralism.
“But at this stage, it is a bit too early. Secretary Rubio had a long session with the Foreign Minister (Datuk Seri Mohamad Hasan). I also spoke with him, but beyond that, the US has promised to consider it sympathetically and give us a boost,” he said. – May 22, 2025