Malaysia is currently facing the risk of losing up to 100,000 jobs following the possibility of the United States (US) imposing new tariffs on semiconductor products on national security grounds.
Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Tengku Abdul Aziz said that although Malaysian semiconductor products are currently exempt from the 19% retaliatory tariff announced by the US recently, the sector is being investigated under Section 232 of the US Trade Expansion Act 1962.
In a statement in the Dewan Rakyat, he explained that if additional tariffs are imposed, exports of electrical and electronic (E&E) goods to the US are expected to decline, thus affecting more than 100,000 jobs, especially in states such as Penang and Kedah.
He also stressed that any changes in trade policy by the US should be given serious attention as the country is Malaysia's largest export destination and one of the main contributors to foreign investment last year.
He added that Malaysia and the US are currently in the final stages of finalising a joint statement outlining bilateral commitments, including a proposed Reciprocal Trade Agreement (ART) which also involves a purchase and investment component worth $150 billion over five years.
