[KUALA LUMPUR] The US tariff rate on Malaysian goods will be announced on Friday (Aug 1), Malaysian Premier Anwar Ibrahim said on Thursday after speaking on the phone to US President Donald Trump. They discussed a tariff rate below 20 per cent, sources said. The call lasted about 20 minutes, they added.
Malaysia is facing a 25 per cent tariff on its exports to the US unless a deal with Washington is reached by Friday. That would have been higher than the agreements announced so far with South-east Asian neighbours, with goods from the Philippines and Indonesia facing tariffs of 19 per cent, and Vietnam 20 per cent.
The countries have held multiple rounds of talks, with Malaysia’s trade minister saying several sticking points remained, particularly on non-trade barriers.
Anwar said he discussed tariffs “in the spirit and principle of free trade” during his call with Trump. “After the explanation I provided, (Trump) decided to review the tariff rates imposed on Malaysia, with an announcement expected (on Friday),” Anwar said in a speech to parliament to present the country’s new five-year economic plan.
Trump to visit Malaysia in October
Anwar also said Trump confirmed that he would attend the next Asean summit in Malaysia in October.
Malaysia will target annual gross domestic product growth of 4.5 to 5.5 per cent from 2026 to 2030, with a deficit of less than 3 per cent of gross domestic product by the end of that period, Anwar said when launching the new five-year plan. Malaysia is also targeting export growth of 5.8 per cent a year in the plan, and will strive to keep inflation at an average rate of 2 to 3 per cent for the period, he said.
Malaysia will allocate RM611 billion (S$185 billion) for the economic plan, with RM430 billion of the total coming from the government’s coffers, and the remainder from government-linked companies and the private sector. “The next five years will be a crucial period for Malaysia to not only transition into a high-income nation but also to provide a high quality of living for the people,” Anwar said.
Malaysia’s central bank on Monday lowered its growth forecast for 2025 to a range of 4 to 4.8 per cent from 4.5 to 5.5 per cent due to global tariff uncertainties and shifting trade policies. It also cut interest rates for the first time in five years earlier this month to “pre-emptively preserve” the export-oriented economy’s growth. REUTERS, BLOOMBERG
