TRADE PERFORMANCE WITHIN EXPECTATIONS
While Malaysia’s overall macroeconomic forecasts remain strong, the new US tariff could weigh heavily on growth and profitability across export-driven sectors.
During a press conference on Monday (Jul 15), Investment, Trade and Industry Minister Tengku Zafrul Aziz said the country’s trade performance for 2025 remains within expectations and is on track to hit its growth target of 4 to 5 per cent.
Still, he added that his ministry expects global trade to moderate in the second half of the year amid uncertainties due to the US tariffs.
The latest trade numbers for June will be released later this week.
Zafrul also told reporters that negotiations with the US are being accelerated as the Aug 1 deadline looms.
These talks follow a meeting between Malaysian Prime Minister Anwar Ibrahim and US Secretary of State Marco Rubio on the sidelines of the ASEAN (Association of Southeast Asian Nations) Regional Forum in Kuala Lumpur last week.
While Zafrul said he remains optimistic about a mutually beneficial deal, he reiterated that Malaysia would not give in on issues tied to national interests.
“The terms negotiations … There are no new terms, but of course, there are concerns on non-tariff issues. We’ve addressed one of that through the strategic Trade Act, where we have now put one item in the list,” he noted.
“But on issues where we cannot move, which is a red line – if you are in a sovereign country, and for strategic interests, are you willing to do that? So we need to study that carefully,” he added.
