KUALA LUMPUR – As the world watches how global trade tensions unfold, particularly with the United States targeting semiconductor tariffs, Malaysia has a reassuring message for its people and businesses: we’re ready.
Bank Negara Malaysia (BNM) Governor Datuk Abdul Rasheed Ghaffour shared this optimism in a press conference addressing Malaysia’s economic performance for the first quarter of 2025. While acknowledging the rising concerns over US-imposed sector-specific tariffs, especially on semiconductors, he emphasized that Malaysia is in a strong position to weather any storm.
“Malaysia’s exports are diversified, and many of the goods we export—like electrical machinery, computer parts, and scientific equipment—are in high demand globally. These are products that people and industries rely on, no matter what,” he said.
In fact, about 32% of Malaysia’s exports to the US—many of them semiconductors—are already exempt from tariffs. “We’ve also seen companies shipping more ahead of time, anticipating potential cost increases. This front-loading shows that demand remains strong, particularly for our electrical and electronics (E&E) sector,” Abdul Rasheed explained.
Malaysia’s economy grew by 4.4% in the first quarter of 2025, slightly down from 4.9% in the previous quarter, but still fueled by robust household spending, a healthy job market, and proactive government support.
BNM has been actively engaging with firms on the ground to better understand their real-time challenges. Encouragingly, fewer than one-third of companies surveyed expect negative impacts from the tariffs in the short term. Many have secured orders well into the next few months, giving them a cushion against immediate trade shocks.
“What’s more, overseas clients have been stockpiling Malaysian goods ahead of the tariffs—another sign of trust in the reliability and quality of our exports,” the Governor added.
Beyond trade, tourism is another bright spot in Malaysia’s economic horizon. With more international flights, relaxed visa rules, and excitement building for Visit Malaysia Year 2026, the country is poised to welcome more tourists—boosting not just receipts, but also business for local communities.
Still, BNM isn’t taking anything for granted. “We’re keeping a close eye on global developments,” Abdul Rasheed cautioned. “While we’re optimistic, we remain prepared for any downside risks, be it from further trade restrictions or fluctuations in global tourism demand.”
In uncertain times, Malaysia is leaning on its resilience, adaptability, and strong global ties—sending a clear message to the world: we’re not just surviving, we’re prepared to thrive.
