Malaysia may be able to negotiate a cut in threatened US tariffs as a result of further discussions, but the global trade war meant that this year’s economic growth was likely to be below target, according to Prime Minister Anwar Ibrahim on Monday ( May 5 ).
If there isn’t a deal reached between Malaysia and the US, which will result in a 24 % tax rate on imports to the US in July.
The United States government has agreed to continue negotiations with Malaysia, and there is a chance of lowering the bilateral tax imposed, Anwar told the legislature.  ,
” Once more, I must emphasize that neither side has reached an agreement, and this process is still in its first stages.”
He claimed that the impact was bearable for the time being that the most tariffs were suspended until July, but that Malaysia was unlikely to meet its economic growth forecast of 4.5 % to 5.5 % this year.
Anwar pointed out that the tariffs ‘ impact on global growth had been offset by the International Monetary Fund, which dropped from 3.3 % to 2.8 %.
This included a change to Malaysia’s rate, which increased from 4.7 % to 4.1 %.
There is a good chance that we won’t be able to meet our Budget 2025 goals of 4.5 to 5.5 % development, despite the situation remaining active.
The Ministry of Finance and Bank Negara Malaysia are currently evaluating the effects of these taxes and will update the GDP estimates once more details are revealed and the result of the upcoming agreements are final, “announced Anwar.
Due to the global trade war, the central bank government Abdul Rasheed Ghaffour added next month that the forecast for growth for this year would need to be lowered.
Malaysia has stated that it is available to discussions over non-tariff barriers, reducing its bilateral trade deficit, and considering signing a bilateral deal deal.  ,
According to Anwar, one of 18 nations that managed to have first discussions with the US authorities regarding its “reciprocal” tariffs, as reported by the Malay Mail, the Southeast Asian nation.
He claimed that during a visit from April 22 to April 24, Zafrul Abdul Aziz, the secretary of investment, commerce, and industry, met with leaders in Washington, DC to discuss the issues, which turned out to be positive.
Anwar argued that the purpose of the visit was to look into potential cooperation, identify what Malaysia may offer, and make an appeal for the US to contemplate exempting Malaysia from the hostile tariffs.
Anwar vowed that Malaysia may actively look into new buying opportunities and promote exchanges between its current trading associates, including China and the European Union.  ,
He claimed that industry ministers from the various nations will meet on May 19 and that progress may be made to improve a free-trade agreement between the Asian regional bloc and China.  ,
The Malaysian prime minister also pledged to provide additional loan guarantees and funding for small and medium-sized businesses ( SMEs ) affected by US tariff measures worth up to RM1.5 billion ( US$ 356 million ).
To help impacted SMEs in obtaining professional bank loans, the government may increase the amount available under the Business Financing Ensure Scheme.
According to Anwar, who also serves as the government’s finance minister,” the government will raise sweet borrowing money by RM500 million to help affected SME companies,” according to a statement released by the local news website The Edge.
This time, Malaysia is the head of the Association of Southeast Asian Nations, which has ten members.
Southeast Asia’s export-focused countries have experienced severe tariffs, with six of the ten countries in the region being levied between 32 % and 49 %.
This is currently undergoing a 90-day pause, with the most recent imposed widespread 10 % tax on most exports from other nations.