Phillip
Capital estimates the total value of exports subject to the 10% tariff imposed
by the US to be RM63.3 billion, equivalent to 4.2% of Malaysia’s total exports.
On the national level, the total exports value subject to the 10% tariff is
around RM63.3 billion or 4.2% of the Malaysia’s total exports. Strong global
demand for semiconductor, which is exempted from the tariff, will continue to
play a key role in boosting Malaysia’s exports.
Under the new
tariff policy, countries will be subject to either a 10% or 12.5% tariff rate,
depending on the strength of their labour safeguard policies and the extent to
which they prohibit the importation of goods produced using forced labour.
Phillip
Capital expects the impact of the new tariffs on Malaysia’s external demand to
remain relatively limited due to key drivers of the country's export
performance, namely within the semiconductor and electrical and electronics
(E&E) sector.
Approximately
68.0% of Malaysia’s exports to the US will be exempted from the tariff.
By product
category, semiconductors recorded the highest exemption rate at 99.9%, while
the exemption rates for E&E products stood at 67.1% and non-E&E exports
at 45.4%. The US remains an important export destination for Malaysia’s E&E
sector. Between 2023 and 2025, Malaysia’s exports to the US accounted for about
13.1% of Malaysia’s total exports, while E&E products alone accounted for
34.0% of Malaysia’s exports to the US.
Overall,
Malaysia will continue to have a robust export pipeline to the US, thanks to
undisrupted global semiconductor supply chains.
Beyond semiconductors or E&E,
we need to actively diversify our exports and secure non-USD payments for those
exports. The US under Trump has no clue short-term or long-term. It is based on
“gut” economics of one, clueless man!
Reference:
Only 4.2% of Malaysia’s exports face new US tariffs as
key tech sector spared — Phillip Capital, Nikail Rezza, theedgemalaysia.com, 7
August 2026
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