Malaysia’s trade growth target achievable despite US tariffs: minister

[KUALA LUMPUR] Malaysia remains on track to reach its trade growth target for the year even as it expects the pace of expansion to moderate in the second half, according to Investment, Trade and Industry Minister Zafrul Aziz.

Trade growth of about 4 per cent to 5 per cent in 2025 is “still achievable,” Zafrul said at a briefing in Kuala Lumpur on Tuesday (Jul 15). The ministry has observed front-loading activity and expects this to continue given the Aug 1 deadline for US levies to kick in, he said.

Exports in May contracted for the first time since September 2024, signalling a rocky road ahead for Malaysia as it contends with steeper tariffs. The trade-reliant nation was threatened with a 25 per cent levy from the US, higher than the initial 24 per cent announced in April, and officials are racing to negotiate with Washington to bring it down further before Aug 1.

The US wanted equity restrictions lifted on all of Malaysian industries, Zafrul said. The ministry is meeting with stakeholders on this to check if the country is ready to liberalise its sectors, he said. BLOOMBERG