BAYAN LEPAS, April 16 – Penang’s manufacturing and export sectors are on high alert following the United States’ implementation of a 24% tariff on imports, a move that threatens immediate disruption to operations, profitability, and employment. Export-focused companies, including Malaysia’s automated test equipment (ATE) firms, are urgently exploring strategic options such as shifting final assembly lines to the U.S. or relocating production to Mexico under the USMCA framework to maintain market access.
Industry leaders warn that the tariff could trigger inflation, manufacturing contraction, and potential job losses if left unaddressed. There is growing concern over possible inventory dumping in Malaysia’s domestic market, further straining local SMEs. Stakeholders are calling on the Malaysian government to engage in urgent bilateral negotiations with the U.S. and closely monitor trade talks with nations like Mexico and Vietnam to safeguard Malaysia’s industrial competitiveness and future FDI prospects.
