US tariffs: stress test for Malaysia’s solar, semiconductor sectors?

AWANI

The US has slapped steep tariffs on solar panel imports from Southeast Asia—Malaysia faces a countrywide rate of 34.4%. UNCTAD's Dr. Juita Mohamad breaks down how this could affect both the solar and semiconductor industries’ global competitiveness.

Transcript

00:00The U.S. has imposed significant tariffs on solar panel imports from Southeast Asian countries,

00:06with Malaysia being hit with a countrywide rate of 34.4%.

00:11Dr. Juita Mohamed, consultant of the U.N. Trade and Development,

00:15shares how this will impact both the solar and the semiconductor industries

00:20and their competitiveness in the global market.

00:22In Malaysia, even though there are a few solar panel producers,

00:31and these solar panel producers are mostly backed by China,

00:37and they are Chinese-owned companies,

00:41but again, it will impact our strength, which is in testing and packaging.

00:50So, in the long run, if these companies do move away,

00:54and if investments in the strategic pockets of the supply chain is stalled,

01:02then we might see a weakening in our semiconductor positioning in the region and in the world.

01:13So, in the past, Malaysia was one of the biggest exporters of solar panels

01:20due to the relocation of Chinese producers here.

01:24And at that time, it was about, I think it was Obama's time,

01:27when they targeted not just Chinese-produced panels,

01:34but also Malaysian-produced panels here that we really had a very negative impact

01:42to our local industry here.

01:48So, with such a high hike of about 34%,

01:52again, with producers and exporters having to operate with a very narrow

02:01and very slim profit margin,

02:04and possibly in the medium term,

02:08with the dampening of global demands,

02:14not just from the US and possibly as well from China,

02:17we may see a longer negative impact

02:24if we don't do anything

02:26to try to either implement trade diversification

02:33or product diversification in the near term.

02:38D

02:56So,

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