KUALA LUMPUR – Prime Minister Datuk Seri Anwar Ibrahim has warned that the United States’ decision to impose retaliatory import tariffs on several countries, including China, risks undermining Malaysia’s trade and investment relations, particularly with key economic partner China.
Speaking at the Kelantan state-level Aidilfitri Madani celebration at Pantai Irama today, Anwar said the high tariffs and taxes introduced by the US would inevitably have direct implications for Malaysia’s economy, which is heavily dependent on international trade, Bernama reported.
“This situation not only affects China’s economy, but also impacts Malaysia, even though we are temporarily exempted from the implementation of these tariffs,” he said, as quoted by Bernama.
“When high tariffs are imposed on China, our trade and investment ties with the country are inevitably affected.”
Anwar stressed that as an export-oriented nation, Malaysia remains vulnerable to global trade policy shifts.
“We are an exporting and trading country. When the US imposes high tariffs on China, of course we will also feel the impact.”
He acknowledged the US has temporarily suspended the tariff hikes for several Asean countries, including Malaysia, but noted that China remains subject to the increased rates.
Malaysia had earlier faced a 24% tariff, which has since been paused, although a flat 10% baseline tariff continues to apply to all countries except China, which bears the higher burden.
This concern over trade tensions comes at a pivotal moment, as Malaysia prepares to host the landmark Asean-Gulf Cooperation Council (GCC) Summit in May.
The event, which will bring together leaders from all Asean nations and six Gulf states – Saudi Arabia, the United Arab Emirates, Bahrain, Qatar, Kuwait and Oman – is expected to bolster Malaysia’s diplomatic and economic stature.
Notably, Malaysia has also extended an invitation to China to attend the summit, a move Anwar said underscores Malaysia’s commitment to maintaining openness and balanced relations with all major global players, with a strong possibility that Chinese Premier Li Qiang will be present.
“Alhamdulillah, our system, our peace and our strong economic growth have attracted global attention for the summit to be held here.
“InsyaAllah, at the end of May, Malaysia will make history again.
“We remain friends with all our neighbouring countries. And remain committed to safeguarding the interests of our people…our people must have access to good job opportunities. (We) must attract new investments – if it is from the US, we accept; from Arab countries, we accept; from China, we accept.”
Anwar went on to highlight Malaysia’s growing reputation as a model for both developing and developed nations, particularly in economic governance.
“We are not merely talking but delivering real results through economic growth and good inflation control,” he said, reaffirming that Malaysia’s economic policies are on the right track. – April 12, 2025