WASHINGTON, April 25 – Putrajaya has confirmed that it will be lowering its economic growth forecast for 2025 due to the United States’ new tariffs, ahead of talks with the latter’s officials pushing for a “fair” trade agreement this week.
Second Finance Minister Datuk Seri Amir Hamzah Azizan was quoted saying Malaysian officials will stress the country’s strategic role in global supply chains, particularly in the semiconductor industry and for US companies manufacturing in Malaysia.
“We must be prepared to look at what we can, so long as it doesn’t disrupt the economic structure within the country,” he quoted telling financial news Bloomberg.
He admitted that closing the trade gap would be challenging, but highlighted that Malaysia records a trade deficit in services despite maintaining a trade surplus with the US.
“Let’s put it all on the table and discuss what’s fair or what’s not fair,” he added.
Amir Hamzah also said that Malaysia’s earlier growth target of between 4.5 and 5.5 per cent will be reassessed, echoing a remark by Bank Negara Malaysia governor Datuk Seri Abdul Rasheed Ghaffour yesterday.
“What’s transpired over the past three weeks has been probably a lot harder than what people anticipated.
“It is likely that global trade will come down. The key question is: how deeply?” he asked.
Amir Hamzah said the revised economic outlook will be released in the coming months, noting that Malaysia’s first-quarter growth was already slower than expected before the new US tariffs were announced.
Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz is scheduled to meet US Trade Representative Jamieson Greer in Washington for a meeting that started yesterday.
This comes as the US announced a 24 per cent “reciprocal” tariff, currently on hold for 90 days.
Meanwhile, Prime Minister Datuk Seri Anwar Ibrahim, who also serves as finance minister, has pledged to lead efforts for a unified Southeast Asian response to the US tariffs, as Malaysia currently chairs the 10-member Asean bloc.
