Malaysia intends to engage with the United States over Trump's planned chip import tariffs, warning that such duties could harm businesses doing business in the Southeast Asian nation. Minister of Investment, Trade and Industry Zafrul Aziz said that he will travel to the United States in the second quarter of 2025 to discuss ways that will benefit both countries.
"We are concerned about whether there will be any tariffs or other policies on semiconductors," Zafrul said in Kuala Lumpur on Monday. "So exposure is key, but if tariffs are imposed, it will certainly be negative for companies doing business in Malaysia."
The United States is Malaysia's third largest semiconductor export market. Trump said last week that he may impose import tariffs of about 25% on automobiles, semiconductors and pharmaceuticals, with relevant decisions to be officially announced as early as April 2.
The Southeast Asian nation last year pledged to invest at least 25 billion ringgit ($5.7 billion) to support its local semiconductor industry.
Intel Corporation, GlobalFoundries and Infineon Technologies have chip packaging facilities in Malaysia, which has become a key regional hub in the global supply chain.