PUTRAJAYA: Malaysia needs to improve its preparedness in facing global economic uncertainties, including the impact of the market crash in the United States (US), which recorded losses of trillions of dollars, said Prime Minister Datuk Seri Anwar Ibrahim.
He said although the country’s economic fundamentals remain strong with convincing figures, there are several unexpected developments that require immediate attention, including tariff issues and trade relations with the US.
“Our export value to the US is significant. Semiconductor exports alone may reach 100 billion dollars, which is 65 per cent of the country’s total semiconductor production. Trade and investment relations with the US are still among the highest.
“Therefore, we must consider all possibilities because we do not want any economic policies that will eventually harm the people, affect jobs, and their livelihoods,“ he said during a staff meeting at the Prime Minister’s Department here today.
Also present were Deputy Prime Ministers Datuk Seri Ahmad Zahid Hamidi and Datuk Seri Fadillah Yusof.
Anwar also said there will be a meeting this Thursday, to be coordinated by the Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, together with ASEAN counterparts to draft and align their stand on the US tariff issue.
On April 2, 2025, Trump announced new tariffs that impacted ASEAN countries. This move directly raised import duties on several of Washington’s Southeast Asian trading partners.
Among the hardest hit were Cambodia which faced a basic and reciprocal tariff of 49 per cent, Laos (48 per cent), Vietnam (46 per cent), and Myanmar (44 per cent).
Thailand faced a tariff of 36 per cent, Indonesia 32 per cent, Brunei and Malaysia at 24 per cent each, the Philippines 17 per cent, and Singapore at a basic tariff of 10 per cent.
The 10 per cent baseline tariff came into effective April 5, 2025 and the additional “reciprocal tariff” April 9.
Commenting further, Anwar emphasised the importance of the entire government machinery to improve efficiency, strengthen work commitment, and practice savings in facing current economic challenges.
“The decline in the stock market, commodities, and trade in the US is one of the most severe in recent history.
“Reports indicate losses of up to four trillion US dollars in the markets. This certainly affects their decisions, and we hope it can be negotiated in a more congenial manner,“ he said.
Meanwhile, Anwar also reminded the leadership of public servants not to take the government’s reform agenda lightly.
“There is still negligence, leakages, corruption reports, and abuse of power. Leaders in departments and ministries need to be vigilant because our goal is to strengthen the nation and ensure that this country continues to rise in stature,“ he stressed.
Also present at the event were Ministers in the Prime Minister’s Department Datuk Seri Azalina Othman Said (Law and Institutional Reform) and Datuk Mohd Naim Mokhtar (Religious Affairs).
Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar and Public Service Department Director-General Tan Sri Wan Ahmad Dahlan Abdul Aziz were also present.
