Malaysia is now at risk of losing three to four percent of its solar panel export value if the United States (US) plans to impose import tariffs on solar panel products.
The US International Trade Commission (ITC) has described US solar panels as potentially affected by the presence of imported solar panels from four Southeast Asian countries, namely Malaysia, Vietnam, Cambodia and Thailand.
UOB Kay Hian Wealth Advisor Head of Investment Research, Mohd Sedek Jantan, said the tariffs could result in billions of ringgit in losses as global photovoltaic (PV) trade exceeded $40 billion in 2021.
Mohd Sedek said that if demand decreases by 30 percent, Malaysia is at risk of experiencing a decline in export revenue, significantly affecting the solar sector.
Mohd Sedek suggested that Malaysia adopt a Geoeconomic Hedging Strategy in diversifying export markets to Europe, India and South America to reduce the risk of geopolitical and economic instability.
He stressed that the country should expand its solar panel export market due to high tariffs after over-reliance on one major market that is vulnerable to protectionist policies.
Itramas Corporation Sdn Bhd believes the impact of US tariffs can be offset by revenue from renewable energy (RE) projects in Malaysia.
