PETALING JAYA: An opposition MP has urged the government to urgently negotiate with the US for a reduction or restructuring of the 24% reciprocal tariff imposed on Malaysian imports.
Machang MP Wan Ahmad Fayhsal Wan Ahmad Kamal said the new reciprocal tariffs were a major blow to the global economy, and will significantly affect Malaysia.
“The immediate impact includes reduced competitiveness of Malaysian products in the US market, loss of export contracts, downsizing of industries, and increased risk of local job losses,” he said in a statement.
Wan Fayhsal also said that in the medium term, the reciprocal tariff would undermine Malaysia’s gross domestic product growth and further weaken the ringgit.
He urged Putrajaya to provide fiscal support for industries most affected by the US tariff hike.
Earlier today, it was reported that US president Donald Trump had signed an executive order imposing reciprocal tariffs on 49 countries, effective April 9.
Malaysia, which was hit with a tariff of 24%, was listed alongside neighbouring countries such as Thailand (37%), Indonesia (32%), Brunei (24%), and the Philippines (18%).
Trump said the additional ad valorem duty on imports from US trading partners would start at 10% from Saturday, and increase shortly after to the rates specified for the respective countries.
Wan Fayhsal said that in navigating the global uncertainties following Trump’s policies, Malaysia must safeguard and strengthen its geoeconomic institutions, particularly Petronas.
He said tha Petronas has over the years played a crucial role as Malaysia’s economic anchor, including by opening up trade opportunities abroad.
“Its economic initiatives often yield benefits beyond the oil and gas sector.
“The government must avoid excessive political interference in Petronas and grant it full autonomy to execute its investment plans and expansion strategies domestically and internationally,” he added.
Wan Fayhsal, a Bersatu Supreme Council member, said Petronas was more than just an oil and gas company, being a symbol of Malaysia’s global economic competitiveness.
“Weakening Petronas equates to weakening Malaysia’s bargaining power in international trade negotiations, particularly in bilateral engagements with key trading partners,” he said.
He also described the proposed National Geoeconomic Command Centre (NGCC) as a “largely cosmetic” measure, saying it lacked a robust strategy to manage real risks from global geopolitical shifts.
Deputy investment, trade, and industry minister Liew Chin Tong said last month that Malaysia wanted to be better prepared for eventualities or fallouts from the current global geoeconomics situation by setting up the NGCC.
