Kuala Lumpur: It is possible that Malaysia can negotiate a reduction in threatened tariffs in the United States, because Washington has agreed to continue the talks, but the World Trade War meant that economic growth should be below the objective this year, said Prime Minister Anwar Ibrahim on Monday, May 5.
Malaysia faces a rate rate of 24% in July for exports to the United States, unless an agreement is concluded between the two countries.
“Although it is preliminary discussions … The US government has agreed to negotiate more with Malaysia, and it is possible to reduce the imposed reciprocal rate,” Anwar told Parliament.
“Once again, I must emphasize that this process is still at an early stage, and no agreement has been finalized on each side.”
He said that the suspension of most prices until July meant that the impact was manageable for the moment, but that Malaysia was unlikely to respect its 4.5% 4.5% of economic growth forecasts this year.
Anwar noted that the International Monetary Fund has projected slower growth worldwide due to prices, which reduces it by 3.3% to 2.8%.
This included a revision of Malaysia, which increased from 4.7% to 4.1%.
“Although the situation remains dynamic, there is a great possibility that we will not be able to achieve our 2025 budgetary objectives between 4.5 and 5.5%.
“As such, the Ministry of Finance and Bank Negara Malaysia are currently assessing the impact of these prices and will revise the GDP forecasts once more clarity and we see the outcome of future negotiations,” said Anwar.
Last month, the governor of the central bank Abdul Rasheed Ghaffour According to this year's growth forecasts also, according to this year's growth forecasts should be reduced due to the World Trade War.
Malaysia said it was open to negotiating with the United States on non-tariff obstacles, reducing its excess bilateral trade and exploring a bilateral trade agreement.
The country of Southeast Asia is one of the 18 nations that have managed to have early discussions with the American government on its “reciprocal” prices, said Anwar on Malay Malay Mail on Monday.
He said the Minister of Investment, Trade and Industry ZAFRUL Abdul Aziz had met Washington DC officials during a visit from April 22 to April 24 to discuss questions, with encouraging results.
“The visit was to explore possibilities of cooperation, to identify what Malaysia could offer them and to appeal to that the United States plan to exempt Malaysia from reprisals,” said Anwar.
Anwar said Malaysia would also aggressively explore new commercial opportunities and stimulate exchanges between existing business partners, including China and the European Union.
He said negotiations to improve a free trade agreement between the Anase regional block and China will be finalized in the near future, the commercial ministers of the respective countries which should meet on May 19.
The Malaysian Prime Minister also undertook to provide up to 1.5 billion RM (356 million US dollars) in additional loan and funding guarantees for small and medium -sized enterprises (SMEs) affected by American tariff measures.
The government will increase the allowance as part of the business financing guarantee regime to help affected SMEs to obtain commercial bank loans.
“In addition, the government will increase the smooth loan funds by 500 million RM through the financial development institutions to support the entrepreneurs concerned by SMEs,” said Anwar, who is also Minister of Finance in the country, quoted by the local information platform The Edge.
Malaysia is president of the association of 10 members of the Southeast Asian Nations grouped this year.
The countries of Southeast Asia of exports have been struck by high prices, with six of the 10 listed countries in the region slammed with samples between 32% and 49%.
This is currently on a 90 -day break, with a universal price of 10% on most imports from other imposed countries.
