KUALA LUMPUR – Amid rising global uncertainties, Bank Negara Malaysia (BNM) reassures Malaysians that the nation is well-prepared to weather the storm, even in the face of potential new tariffs on semiconductors from the United States.
Speaking with calm confidence at a recent press conference, Governor Datuk Abdul Rasheed Ghaffour shared that Malaysia’s diverse export landscape and strong global demand continue to act as a protective cushion against economic shocks.
“Thanks to early shipment strategies and the nature of our exports, we’re in a relatively strong position,” he said. “About 32% of what we export to the U.S., including high-demand items like semiconductors, is already exempt from tariffs. And many of our key exports—like electrical machinery and scientific equipment—are products the world simply can’t do without, even if prices go up.”
He was addressing concerns following reports of upcoming U.S. sector-specific tariffs on semiconductors. While such news may raise eyebrows, Malaysia’s first-quarter economic data tells a more reassuring story.
The economy grew by 4.4% in the first quarter of 2025—slightly lower than the 4.9% in the previous quarter but still strong—fueled by steady consumer spending, a healthy job market, and government policy support.
Abdul Rasheed highlighted how some exporters are already adapting. “We’re seeing signs that companies are front-loading their shipments to beat potential tariff deadlines. This shows how strong the demand still is for our electrical and electronic (E&E) products,” he said. “Malaysia remains firmly positioned in global supply chains, especially with the rising tide of demand from artificial intelligence technologies.”
Importantly, this confidence isn’t just based on data. BNM has been actively engaging with companies on the ground. “What we’re hearing is encouraging—most firms don’t expect a major impact in the short term. In fact, many have already secured orders for the coming months, giving them a bit of breathing space,” he shared.
The governor also noted that some clients abroad are stocking up on Malaysian goods in advance, leading to a noticeable uptick in exports. This kind of behavior—known as front-loading—further demonstrates Malaysia’s importance in global trade flows.
Beyond trade, tourism is another bright spot. With better flight connectivity, extended visa-free travel policies, and early momentum for Visit Malaysia Year 2026, the sector is expected to bring in more visitors—and more spending.
“Still, we’re not letting our guard down,” Abdul Rasheed cautioned. “We’re closely monitoring risks, including tighter trade restrictions and possible drops in tourism spending. But overall, Malaysia is holding its ground.”
In a world full of economic curveballs, Malaysia’s steady hand and strategic foresight offer a sense of reassurance—and a reminder of the quiet strength that lies in resilience.
