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.
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