Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz on Monday (April 7) said several steps are being taken by the government to address the implications of the tariffs imposed by the US.
Among the measures is the activation of the National Geoeconomic Command Centre (NGCC).
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Among the measures is the activation of the National Geoeconomic Command Centre (NGCC).
Read more at https://tinyurl.com/yws69k2h
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NewsTranscript
00:00Allow me to share the steps that are being and will be taken by the government and MITI
00:08in addressing the impact of this tariff.
00:11So measure number one, we have activated the National Geoeconomic Command Centre or NGCC.
00:18MITI is currently doing a sectoral impact study on key exports to the US.
00:25This will be presented to the NGCC.
00:27The Prime Minister has agreed to chair the next meeting this coming Monday and will be
00:32considering the findings of the impact study.
00:36Measure number two, MITI has set up a task force on managing US tariffs to gather inputs
00:42and feedback from key stakeholders.
00:43So the members of this task force will also be members from the private sector.
00:48This is to minimize the impact of the unilateral US action on our exports and investments.
00:55Tomorrow, MITI will be meeting representatives of industries, from chambers and export companies,
01:02export associations.
01:04And MITI will also engage all the relevant ministries and agencies, like Ministry of
01:08Finance, Ministry of Economy, Benegara, etc.
01:12So we will leave no stone unturned in considering all options to ensure the well-being of our
01:20industries, our businesses and our people.
01:23Third measure, at the ASEAN level, I will chair a special ASEAN Economic Ministers Meeting
01:29on the 10th of April.
01:31We will discuss the broader implication of the US tariff measures on regional trade and
01:36investment.
01:38So we are looking at the investment flow, macroeconomic stability and ASEAN's coordinated
01:42response to this tariff issue.
01:45Subsequently, the ASEAN leaders will meet to discuss ASEAN member states' way forward
01:49and to mitigate potential disruptions to regional trade, supply chain networks as well
01:54as cross-border investments.
01:56And measure number four, in terms of strategic high-level engagement with the US, this will
02:00continue.
02:01We will leverage on the Malaysia-US Trade and Investment Framework Agreement, or TIFA.
02:07And MITI will also consider the establishment of a tech safeguard agreement to protect our
02:13semiconductor and aerospace exports.
02:16Additional exemptions will be negotiated and, as I mentioned this morning, we have
02:22met the US Ambassador and we will continue negotiating with the US.
02:27The fifth measure is on our own export markets, MATRI this year.
02:31It has proactively diversified and expanded Malaysia's export markets to regions such
02:36as Middle East, Africa and South America.
02:40So effort at MITI's policy level includes increased utilisation of our existing FTAs
02:46as well as other FTAs that are being initiated.
02:50For example, the conclusion or the entry to force of CEPA with the UAE, resumption of
02:56FTA with EU, FTA negotiation with South Korea, upgrading of our ATIGA, which is our ASEAN
03:02Trade and Goods Agreement, and negotiations on the Malaysia-European Free Trade Association
03:07EFTA, Economic Partnership Agreement.
03:10So we are one of the largest trading partners of the US in ASEAN as well, and also one of
03:16the major recipients of US-based foreign investments.
03:20So we must therefore acknowledge that there will be mid- to long-term impact.
03:25This impact will be challenging, it will be broad-based, mainly because the tariffs have
03:29also been levied on almost every other trade and investment partner of Malaysia.
03:35So should many countries retaliate, the global economic fallout of a worldwide trade war
03:39will be very serious.
03:41So this impact, as I mentioned, is expected to be broad-based, as tariffs have also been
03:46imposed on almost every trading partner and investment source partner of Malaysia.
03:53So there may be some positive and negative impact from the 24% tariff.
03:56I think there are some positive, some negative, but for now, critical sectors, for example
04:02critical minerals, pharmaceuticals, semiconductors, and certain energy-related products are temporarily
04:08exempted from the new tariff measures, although they may be subject to further trade scrutiny
04:13or tariff actions in future.
04:16And semiconductor is Malaysia's largest export category to the US, but many other sectors
04:20will be hit, such as machinery and equipment, furniture, rubber, and plastic.
04:25So in terms of approved investments, initial feedback from foreign and domestic investors,
04:30number one, some have stated that for now it is too early to assess the impact on their
04:35respective operations until the tariffs come into force, some of them mainly on April 9th.
04:43Several investors have shared that their supply chains will be affected, especially in terms
04:47of contract manufacturing, and some Malaysian investors are slowing down their business
04:51expansion plans and starting to conserve cash while focusing on market expansion in other
04:57markets, for example China, India, ASEAN.
05:00In closing, the Bandar Hati government is determined to overcome this challenge, and
05:05MITI seeks the cooperation of all industry sectors, industry chambers, and associations
05:10to work with us on finding the best solution moving forward.
05:14So in any event, I would like to reassure the industry that MITI will do its utmost
05:20to ensure that Malaysia's interests are always protected.
05:23What is important is the well-being of the people and our business and export sectors.