1 day Ago By Qistina Sallehuddin
KUALA LUMPUR: The government does not foresee a recession in Malaysia as a result of the United States tariffs on imports from Malaysia and other countries, says Prime Minister Datuk Seri Anwar Ibrahim."Our economy remains resilient," Anwar said in a televised broadcast tonight.It was previously reported that concerns over a global recession were growing, driven by the US tariffs and revisions to the gross domestic product (GDP) of the US, Europe and China.
"Our macroeconomic foundations remain strong, including our robust household spending, strong domestic investment, healthy tourism receipts, and the continued implementation of national master plans," Anwar said. "Our sound economic fundamentals, therefore, will enable us to weather this challenge from a position of strength and preparedness."Anwar, however, said that should the tariffs be implemented, the government would need to review its 2025 GDP growth projection.
Currently, the government expects the economy to grow between 4.5 and 5.5 per cent.
In his address, Anwar said the medium-to-long-term impact of the tariffs on Malaysian imports would be challenging but that the government is ready to mitigate the issue. He added that Malaysia would not resort to retaliatory tariffs. It would instead engage with the US to find a mutually acceptable, fair and equitable solution.
Meanwhile, in Penang, Chief Minister Chow Kon Yeow said his administration has submitted industry players' feedback on the tariffs to Anwar and the investment, trade and industry minister.Chow said the companies are concerned about the tariffs as the state is an industrial hub.He added that as it was still early days, there was a need to study the issue and the potential impacts on the country.
He said there were also those who expressed optimism as the tariffs imposed on Malaysia are lower than those on neighbouring countries, including Vietnam, Thailand and Indonesia."And because of the lower tariffs, some commentators say that we will actually become a more attractive investment destination. However, these are all just initial views.
"Earlier last week, the US imposed a 24 per cent tariff on imports from Malaysia, which is among a slew of countries hit by reciprocal levies by US President Donald Trump's administration.On Saturday, Anwar had said he was actively engaging with key figures close to Trump about the tariffs.© New Straits Times Press (M) Bhd.
