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Trump's Tariffs: Establishment of NGCC, special task force a correct step for Malaysia – IDEAS
The establishment of the National Geo-Economics Action Centre (NGCC) and the MITI tariff task force is seen as a timely and balanced response by the Government, according to the Institute for Democracy and Economic Affairs (IDEAS). Pic of IDEAS logo
KUALA LUMPUR: The establishment of the National Geo-Economics Action Centre (NGCC) and the MITI tariff task force is seen as a timely and balanced response by the Government, according to the Institute for Democracy and Economic Affairs (IDEAS).
In a statement on Tuesday, IDEAS said Prime Minister Datuk Seri Anwar Ibrahim's focus on leading a joint strategy at the ASEAN level during Malaysia’s ASEAN Chairmanship in 2025 is timely and deserves praise.
However, the think tank added that this response must be followed by regular updates to reassure industry players and the public that their interests are safeguarded and that the market remains strong and stable.
IDEAS Deputy Director of Research, Dr. Stewart Nixon, said in the statement that the government is urged not to take retaliatory measures or raise tariffs as the United States has done, as such actions would only add to the economic burden on Malaysians. Instead, he argued, Malaysia should continue fostering long-term, mutually beneficial partnerships with countries committed to free and fair trade.
Nixon also emphasized the need to focus on improving institutional transparency and empowering structural reforms to position Malaysia as a stable, resilient, and sustainable trade and investment destination.
"Policymakers must be aware that economic shocks hit the most vulnerable and small businesses hardest. Malaysia must remain cautious to reduce this vulnerability, especially as the United States seems to be deliberately creating it," Nixon said.
IDEAS also pointed out that disruptive and inconsistent economic policies are another deviation from the rule-based multilateral approach. This raises greater risks to global economic integration and the principles of free and open trade.
“These sweeping tariffs are yet another damaging and misguided action by the Trump administration, deviating from sound economic policies. They add to the closure of USAID and the U.S. withdrawal from international governance, collectively creating rising economic uncertainty that threatens the livelihoods of Malaysians and the global community,” Nixon stated.
He added that the burdensome tariffs imposed by the Trump administration have no direct connection to Malaysia’s trade policy—or those of any other country.
According to Nixon, Malaysia’s average tariff on imports from the United States is only 1.5%, and the trade surplus of Malaysian goods reflects competitive advantages and consumer demand rather than trade restrictions.
“These tariffs will raise trade costs, thus hindering the exchange of goods and services that actually provide significant benefits to both countries, including increasing productivity, creating jobs, and lowering prices,” he said.
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In a statement on Tuesday, IDEAS said Prime Minister Datuk Seri Anwar Ibrahim's focus on leading a joint strategy at the ASEAN level during Malaysia’s ASEAN Chairmanship in 2025 is timely and deserves praise.
However, the think tank added that this response must be followed by regular updates to reassure industry players and the public that their interests are safeguarded and that the market remains strong and stable.
IDEAS Deputy Director of Research, Dr. Stewart Nixon, said in the statement that the government is urged not to take retaliatory measures or raise tariffs as the United States has done, as such actions would only add to the economic burden on Malaysians. Instead, he argued, Malaysia should continue fostering long-term, mutually beneficial partnerships with countries committed to free and fair trade.
Nixon also emphasized the need to focus on improving institutional transparency and empowering structural reforms to position Malaysia as a stable, resilient, and sustainable trade and investment destination.
"Policymakers must be aware that economic shocks hit the most vulnerable and small businesses hardest. Malaysia must remain cautious to reduce this vulnerability, especially as the United States seems to be deliberately creating it," Nixon said.
IDEAS also pointed out that disruptive and inconsistent economic policies are another deviation from the rule-based multilateral approach. This raises greater risks to global economic integration and the principles of free and open trade.
“These sweeping tariffs are yet another damaging and misguided action by the Trump administration, deviating from sound economic policies. They add to the closure of USAID and the U.S. withdrawal from international governance, collectively creating rising economic uncertainty that threatens the livelihoods of Malaysians and the global community,” Nixon stated.
He added that the burdensome tariffs imposed by the Trump administration have no direct connection to Malaysia’s trade policy—or those of any other country.
According to Nixon, Malaysia’s average tariff on imports from the United States is only 1.5%, and the trade surplus of Malaysian goods reflects competitive advantages and consumer demand rather than trade restrictions.
“These tariffs will raise trade costs, thus hindering the exchange of goods and services that actually provide significant benefits to both countries, including increasing productivity, creating jobs, and lowering prices,” he said.