MALAYSIA CONFIDENT IN WEATHERING US TARIFFS WITH SOLID ECONOMIC FUNDAMENTALS

KUALA LUMPUR, May 5 (Bernama) -- Prime Minister Datuk Seri Anwar Ibrahim is confident that Malaysia’s strong economic fundamentals will enable the country to navigate the global uncertainties following the recent announcement of retaliatory tariffs by the United States (US).

He stressed that structural reforms introduced under the MADANI Economic Framework will strengthen the country's ability to withstand global economic challenges and stay prepared for future uncertainties

“With a resilient domestic economy and strong confidence, we are not easily swayed by external pressures or overwhelmed by global challenges.

“We have the figures and data that can be managed and used wisely,” he said during a Special Parliamentary Meeting in the Dewan Rakyat today on the US tariffs

Anwar, who is also the Finance Minister, described Malaysia’s macroeconomic performance last year as highly encouraging, with the country recording a gross domestic product growth of 5.1 per cent in 2024 compared to 3.6 per cent in 2023, surpassing the Budget 2024 forecast of between 4.0-5.0 per cent.

He said that last year, Malaysia recorded RM378.5 billion in approved investments -- the highest in the country’s history -- marking a 14.9 per cent increase compared to RM329.5 billion in 2023.

“In addition, we have consistently reduced the fiscal deficit — from 5.5 per cent in 2022 to 5.0 per cent in 2023 and subsequently 4.1 per cent in 2024, down to a projected 3.8 per cent for 2025,” he said.

He added that the government is taking the US’s imposition of reciprocal tariffs seriously.

“Given the importance of the US as Malaysia's export destination and its largest source of foreign investments, the government believes that any challenges to trade relations must be addressed pragmatically and based on national interest, while maintaining good ties with all of Malaysia’s trading partners,” he said.

At the same time, Anwar said that the country’s alliances and networks, particularly with ASEAN nations, China, Japan, and regional partners, have been strengthened through discussions on this issue.

The US tariff is expected to be a key agenda at the ASEAN Summit with the Gulf Cooperation Council (GCC) countries and China later this month.

“Based on preliminary observations, Malaysia’s export performance remains strong, especially in the electrical and electronics sector, which continues to show encouraging growth

“With the postponement of the reciprocal tariff implementation, the impact on Malaysia’s trade is expected to remain manageable in the near term,” said Anwar.

Furthermore, he added that with ongoing structural reforms, the MADANI Government has built a robust supply chain ecosystem and diversified the country’s export products and markets.

“This is to ensure we are not overly reliant on any single market or products exposed to external shocks,” added Anwar.

The Prime Minister said that continued efforts to strengthen domestic economic resilience have enabled the country to achieve economic stability with sufficient fiscal space.

“This has helped the nation to withstand any economic and financial crisis. The government is confident that a data-driven and well-planned policy response can address current uncertainties.

“Monitoring mechanisms have been activated, and targeted measures will be implemented as needed to support affected individuals and businesses,” he added.

-- BERNAMA