Trump tariffs: Anwar says no recession expected for Malaysia, ASEAN to coordinate united trade response

KUALA LUMPUR: Malaysia will not face a recession despite being hit by United States President Donald Trump’s new tariffs, according to Prime Minister Anwar Ibrahim. 

“For now, let me reassure you that the government does not foresee a recession in Malaysia,” Anwar said in a nine-minute video addressing the US tariffs posted on his social media accounts on Sunday (Apr 6).

However, the Malaysian prime minister said he considers the recently announced tariffs a “major threat” to the current global trade and investment system. 

From Apr 5, every Malaysian product shipped to the US will face at least a 10 per cent duty and from Apr 9, most products will face a 24 per cent rate, with some exemptions. 

Anwar, who is also Finance Minister, emphasised that his government will not introduce retaliatory tariffs and that Malaysia’s macroeconomic foundations remain strong, including its “robust household spending, strong domestic investment (and) healthy tourism receipts”.

“We will of course be able to weather this challenge from a position of strength and preparedness,” he said. 

He also said that, if the 24 per cent tariff were implemented, the economic growth forecast of 4.5 per cent to 5.5 per cent for this year would need to be reviewed. 

Malaysia, as the chair of the Association of Southeast Asian Nations (ASEAN), is also coordinating a response with other regional leaders “to engage constructively” with the United States as Southeast Asian countries are among the hardest hit by the sweeping tariffs, Anwar said.