Malaysia is set to lead discussions on the broader implications of the US tariffs with its Southeast Asian neighbours, while an industry leader says the region can serve as a balanced, rules-based trading bloc.
Speaking to reporters during a press conference in Putrajaya this afternoon, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz (main image) said he will chair a Special Asean Economic Ministers’ Meeting on April 10. This comes following US President Donald Trump’s sweeping tariffs, which have hit several Southeast Asian nations hard — including Laos (49 per cent), Cambodia (49 per cent), Vietnam (46 per cent), Thailand (36 per cent), and Malaysia (24 per cent).
“We will be discussing the impact on Asean and also looking at areas of common concern shared by Malaysia and the other countries regarding the US tariff decision,” said Zafrul, referring to the Association of Southeast Asian Nations (Asean).
“Some may argue that certain countries were hit harder than others, so it won’t be easy to reach a unanimous consensus. But there will be areas where we can agree, and more importantly, we must explore opportunities for Asean to work closer together.”
“I don’t want to pre-empt what will be discussed in the Asean meeting, but as you know, the spirit of Asean is always built on consensus,” he added. “Malaysia believes in the strength of Asean when we unite behind a common cause.”
Zafrul also clarified that Malaysia imposes a 5.6 per cent tariff on American exports — not 47 per cent as claimed by Washington. He met with US Ambassador to Malaysia Edgard D. Kagan earlier today to seek clarification on the matter.
Asian stock markets slumped following Trump’s April 2 announcement. Major indices in Shanghai, Tokyo and Hong Kong tumbled upon opening. Singapore’s Straits Times Index (STI) fell 8.5 per cent — dropping more than 325 points to below 3,500 — while the FBM KLCI plunged over 4.3 per cent, or 65 points, to 1,439.07, marking its worst one-day drop since the onset of the Covid-19 crisis in March 2020.
Zafrul also outlined several measures Malaysia is taking in response. These include activating the National Geoeconomic Command Centre, which will soon meet to consider the findings of a sectoral impact study currently underway by the Investment, Trade and Industry Ministry (MITI).
“MITI has also established a Task Force on Managing US Tariffs to gather input and feedback from key stakeholders, including representatives from the private sector.
“Tomorrow, MITI will meet with representatives from industry chambers and export associations. We will also engage with relevant ministries and agencies such as the Finance Ministry, Economy Ministry, Bank Negara Malaysia, Malaysia External Trade Development Corporation (Matrade), Malaysian Investment Development Authority, and Department of Statistics Malaysia. No stone will be left unturned in ensuring the wellbeing of our industries, businesses and people.”
He added that Matrade had already taken proactive steps to diversify Malaysia’s export markets to regions such as the Middle East, Africa and South America.
Meanwhile, the Machinery & Engineering Industries Federation (MEIF) said the impact of Trump’s latest move would go far beyond immediate cost increases or market access issues.
“What we are witnessing is a structural reshaping of how nations define economic sovereignty, supply chain security and industrial maturity. Malaysia must not only brace for these waves — but rise above them, with resilience rooted in strategic clarity and regional solidarity,” said MEIF president Mac Ngan Boon.
Mac stressed that Asean solidarity was “equally critical”.
“In these volatile times, regional coordination is no longer optional — it is essential. Malaysia must work closely with its Asean neighbours to harmonise industrial standards and environment, social and governance (ESG) compliance frameworks; establish interoperable, trusted supplier networks; and present a unified voice in global trade negotiations,” he said.
“Asean’s strength lies not only in its population or markets — but in its ability to act as a balanced, rules-based trading bloc amid escalating global rivalries. Malaysia must continue to lead with quiet strength and collaborative foresight.”
He added that MEIF was ready to support MITI and national stakeholders through engagements with small and medium enterprises (SMEs) and global players; by providing industry intelligence and policy feedback; and by jointly developing resilience-building tools, roadmaps and recognition frameworks.
