US President Donald Trump's decision to impose a 25% tariff on automotive, semiconductor and pharmaceutical imports will be a challenge for Malaysia.
Foreign Minister Datuk Seri Mohamad Hasan said this is because 60% of Malaysia's total trade with the US comprises electrical and electronics exports.
“This is a huge blow if we can't get this resolved soon.
"That's why yesterday (Wednesday), I mentioned in this honourable assembly that Asean plans to hold a special Asean-US summit immediately to present to the new US administration (on the matter).
“We need to confer on how to provide the views from Asean countries to ensure the proposed tariffs do not burden us,” he said during a question-and-answer session in the Dewan Rakyat on Thursday.
He added that what the US is doing is ‘reshoring’.
"By [reshoring], it means the US is imposing this high tax, so that large companies operating outside the US return to the US and establish operations in the US itself," he said in reply to a question from Manndzri Nasib (Barisan Nasional-Tenggara), who wanted to know the extent to which Malaysia can benefit from the organisation of the 2nd Asean-Gulf Cooperation Council (GCC) Summit and the Asean-GCC-China Summit in increasing economic cooperation, trade and national and regional investment.
Mohamad, who is also known as Tok Mat and Mat Hasan, said the three blocs of Asean, GCC and China should sit together to discuss the matter.
"This is because China is a country with one of the largest markets, the GCC is a country with capital, and Asean is a block of countries with many natural resources.
"If these three blocs can negotiate, we can develop the intra-Asean economy, making Asean the fourth largest economy in the world by 2030," he said.
Source: The Edge Malaysia
Share:
<p>Time: 2024 By: Ministry of Industry and Trade</p>
