KUALA LUMPUR, May 6 — Malaysia’s exports will be impacted more by global economic growth and trade than by currency fluctuations, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said today, while flagging a potential slowdown in outbound shipments.
He said exports rose significantly in the first quarter of 2025 as companies were frontloading orders to get ahead of the United States’ tariffs, which were announced by US President Donald Trump in early April.
“What will support exports more is actually the growth of the global economy and the growth of global trade ... more so than the currency fluctuation,” Tengku Zafrul said at a press conference.
Malaysia’s exports rose a better-than-expected 6.8 per cent in March from a year earlier, with shipments to the US rising to a record RM22.66 billion.
Tengku Zafrul said the “dramatic increase” in exports mainly included purchases in electrical and electronic products from US buyers “looking at stocking up due to the possible increase in tariffs”. However, he said the growth in exports was unlikely to remain as strong moving forward.
Malaysia’s exports are projected to rise 5.2 per cent in 2025, moderating from a 5.7 per cent expansion in 2024.
Malaysia is facing a 24 per cent tariff rate in July for exports to the US, unless an agreement is struck between the two countries. Putrajaya has said it is open to negotiating with the US on non-tariff barriers, reducing its bilateral trade surplus, and exploring a bilateral trade agreement.
Prime Minister Datuk Seri Anwar Ibrahim said yesterday that there was a possibility that Malaysia can negotiate a reduction in threatened US tariffs as Washington has agreed to further talks.
Tengku Zafrul said Malaysia’s objective is to reduce the tariff to zero, adding that the US wants Malaysia to resolve trade imbalances and non-tariff barriers, as well as safeguard US technology from transhipment smuggling.
Yesterday, Tengku Zafrul said the Investment, Trade and Industry Ministry will be the sole issuer of certificates of origin for exports to the US to prevent illicit transshipment through Malaysia.
He said the ministry will enhance audits of exporters’ applications and strengthen investigations to curb any transshipment offences to the US.
— Reuters
