KUALA LUMPUR, January 31 – Malaysia’s solar industry is experiencing a slowdown as several Chinese-owned manufacturers reduce operations or shut down due to escalating US tariffs. Major companies like Jinko Solar Co, Risen Energy Co, and JA Solar Technology Co, which collectively account for almost 40% of the nation’s solar production capacity, have been impacted.
These firms initially set up operations in Malaysia with the aim of exporting to the US, but higher scrutiny and the potential for increased tariffs under President Donald Trump have made their products less competitive in the American market. The production cutbacks come after a series of tariff hikes announced by the US, following claims that Chinese companies were dumping cheap solar panels into the market, disrupting global pricing.
Longi Green Energy Technology Co, responsible for over 37% of Malaysia’s solar capacity, has also halted its expansion plans. Consultancy firm Wood Mackenzie revealed that Chinese solar companies dominate Malaysia’s solar sector, making up nearly 80% of the country’s 23.6GW production capacity.
Despite these challenges, Malaysia’s solar panel exports to the US remain significant, valued at nearly US$1.8 billion from January to September 2024.
