Malaysia’s Semiconductor Industry Faces Uncertainty Over Future US Tariffs
Malaysia’s semiconductor firms are cautious despite recent US tariff exemptions. Industry leaders warn of potential future actions that could impact exports and operations of US firms in Malaysia. Negotiations with the US regarding tariffs are imminent.
Malaysia’s semiconductor sector faces ongoing uncertainty despite recent exemptions from new US tariffs. Datuk Wong Siew Hai, president of the Malaysia Semiconductor Industry Association, advised that the industry could still face future trade actions. He cautioned that US semiconductor firms operating in Malaysia might also be impacted by potential tariffs.
Recently, US President Donald Trump announced a blanket 24% tariff on imports from Malaysia, effective April 9, although semiconductors are currently exempt. Electrical and electronic exports constitute approximately 40% of Malaysia’s total exports, underscoring the significance of the semiconductor industry, which includes firms such as Intel and Infineon Technologies.
Wong further explained that semiconductors could be indirectly affected, as they are critical components in products subjected to tariffs, such as computers and industrial equipment. Therefore, he stated, “If the product is shipped to the US, it will be captured under the equipment tariff.”
Currently, the semiconductor industry is adopting a cautious approach, opting to “wait and see” amid the unpredictable nature of the Trump administration’s policies. It remains unclear whether the tariffs will become final, although negotiations between Malaysia and the US are anticipated regarding these tariffs.
In summary, Malaysia’s semiconductor industry maintains a cautious outlook amid possible future US tariff actions, despite current exemptions. The need for proactive negotiations is evident, particularly as the tariffs may impact significant exports and domestic operations of US firms in Malaysia. Industry leaders emphasize the importance of vigilance and readiness for potential changes in the trade landscape.
Original Source: theedgemalaysia.com
