00:00According to experts, the imposition of a 24% reciprocal tariff on Malaysia by the Trump
00:07administration may result in moderate to significant impact on Malaysian economy and businesses.
00:14Economist Bajoy Bardai said the new tariffs could make the Malaysian economy less stable,
00:19with the share market taking a hit and the ringgit seeing a marginal decline following
00:22the unveiling of the reciprocal tariffs.
00:26He added that businesses in the US may push Malaysian exporters to lower prices or seek
00:31cheaper suppliers from other countries, leading to a drop in the volume of business for Malaysian
00:36exporters and a decline in profits.
00:39In the MIDF analysis, Head of Research Imran Yassin Yusof, Head of Strategy Syed Kifni
00:44Kamaruddin and Chief Economist Abdul Muezz Murhalim warned that Malaysian shipments to
00:49the US could be cut by 10%, which is significant given that the US market accounts for 13%
00:55of Malaysia's total exports.
00:57They said if the tariff hikes also weaken demand from countries such as Singapore, Taiwan,
01:01South Korea, Vietnam, Japan and China, it could lead to another 10% decline in shipments
01:07from Malaysia.
01:08However, Small and Medium Enterprises Association President Chin Chi-Siong sees the tariffs
01:13as an opportunity to renegotiate trade deals and reduce reliance on the US by exploring
01:19new markets.
01:20He also said Malaysia is less affected than Vietnam and Indonesia, giving local manufacturers
01:25a competitive edge, especially in sectors like electronics, rubber gloves and furniture.
01:31Narmada Raja, FMT.
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