00:00Tariffs imposed by the Trump administration could backfire on U.S. semiconductor firms operating in Malaysia and ultimately impact Malaysia's economy, according to a former MP.
00:12Charles Santiago, who previously headed an economic and research center, said U.S. semiconductor companies have a huge presence in Malaysia, with over 200 U.S. firms based in Penang.
00:26He said tariffs could increase production costs for U.S. companies, forcing them to move production to other parts of the world, leading to higher product costs, inflation, and job losses, ultimately harming both American companies and Malaysia.
00:40U.S. President Donald Trump has threatened to impose 100% tariffs on exports from members of the BRICS grouping of nations, which includes Malaysia, if they go ahead with replacing the U.S. dollar as the international reserve currency.
00:54Ye Kim-Lang from Sunway University said Malaysia should prepare policies to mitigate potential impacts on its significant U.S. export market, especially in electronics and semiconductors.
01:05He suggested developing preemptive strategies against unilateral U.S. tariffs and, if necessary, a tariff response policy in collaboration with industry stakeholders.
01:16Ye also warned that tariffs could double prices overnight in sectors like medical gloves, semiconductors, and electrical components, potentially leading to a major decline in Malaysian exports and economic downturn.
