US President Donald Trump’s new tariffs could lead to up to 50,000 job losses in Malaysia, especially in Penang, Johor, and the Klang Valley, and may slow wage growth, according to the Malaysian International Chamber of Commerce and Industry (MICCI).

MICCI President Christina Tee said key sectors at risk include electronics, gloves, and automotive parts —especially among small and medium-sized businesses that rely on exports. She warned that Malaysia must act quickly, as other countries in the region are already seeking relief or exemptions.

“This is one of the most consequential trade developments in recent years. The 24% tariffs will have far-reaching implications beyond the electronics manufacturing services (EMS) sector, affecting palm oil, medical devices, automotive parts, textiles and more.”

“With over 65% of our gross domestic product tied to trade, Malaysia’s economy is extremely vulnerable to such shocks.”

“These tariffs risk rendering our exports uncompetitive in the US, forcing businesses to reconsider contracts, restructure operations, or even shift production abroad,” Christina said in a statement, as quoted by NST.

To protect jobs and industries, MICCI proposed a five-point strategy that includes a tariff relief scheme, faster trade deals, taskforces for trade codes and US relations, and a resilience fund for exporters.

The chamber also urged businesses to adapt by reviewing supply chains, finding new markets, improving trade compliance, and working more closely with ASEAN partners.

“To that end, MICCI has formally called for the establishment of a Tariff Mitigation Council, co-chaired by the Ministry of Investment, Trade and Industry and MICCI, to lead national-level coordination.”

“The chamber also recommends the formation of bilateral working groups under the Malaysia–US Trade and Investment Framework Agreement as well as access to technical advisory services for affected exporters,” MICCI said.

(Source: NST)

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