PUTRAJAYA: Indonesian President Prabowo Subianto paid a Hari Raya Aidilfitri courtesy visit to Prime Minister Datuk Seri Anwar Ibrahim last night where both men took the opportunity to discuss regional matters especially the United States imposed tariffs.
The new tariffs announced by US President Donald J. Trump rattled Asean economies prompting Malaysia and the regional partners to convene to chart a collective response.
Speaking to civil servants during his monthly address, Anwar said the Asean region must unite and use its strength in harmony and numbers to find ways to combat the US tariffs adding that the move by the United States had flaws in them.
“We cannot take it lightly. Although the US has long championed free trade, this decision was made on a very weak basis. Some of the countries listed include, if I’m not mistaken, islands that are inhabited by penguins,” said Anwar.
“The unpredictability is what worries us most and we must stay firm as a group and ensure our people’s livelihoods are protected.”
The statement, delivered with a hint of sarcasm, shows the perceived lack of due diligence by Washington, fueling concerns of a broader shift away from established global trade norms.
Anwar stressed the need for Asean unity confirming engagements with leaders from Vietnam, the Philippines, Brunei, Laos, Thailand, and others to build consensus ahead of a joint economic strategy meeting.
He said Malaysia exports US$100 billion (RM447 billion) worth of semiconductors annually with 65 per cent going to US could be significantly impacted.
“We are monitoring it closely. Our economy is stable and we are not too exposed to those threats but unpredictability is a challenge especially when our semiconductor exports to the US alone are worth US$100 billion, about 65 per cent of our total output.”
“There are exceptions in the US tariff announcements, so perhaps it’s best we take an average approach, where Asean ministers can find a common position,” he added.
Anwar said on Thursday Malaysia’s Ministry of Investment, Trade and Industry (Miti) will convene a meeting with economic ministers to solidify Asean’s joint stance.
