However, the economic growth forecast of 4.5% to 5.5% for this year would need to be reviewed, he said in a video broadcast on the US tariff, Bernama reported.
The mid- to long-term impact would be challenging. However, Malaysia’s sound economic foundation would enable the country to weather the challenge “from a position of strength and preparedness”.
Anwar said the US had inaccurately calculated the basis for the so-called 24% “reciprocal tariff” announced last week, describing it as “fundamentally flawed”.
While some exemptions partially shielded semiconductors, Malaysia’s largest exports to the US, the new tariffs would still adversely impact many industries including textiles, furniture, rubber and plastics, the prime minister said.
However, Malaysia would not introduce retaliatory tariffs, and would respond constructively, not in a confrontational way, in collaboration with friends and partners, he said.
Efforts for a fair solution were already under way including the establishment of the national geo-economic command centre, which he chairs.
A full study on the impact of the US tariffs on several export sectors would be submitted by the ministry of investment, trade and industry within the week, while the minister, Tengku Zafrul Aziz, would hold a meeting with all Asean economic ministers for a coordinated regional response.
Anwar also had talks on the tariffs this evening with Indonesian president Prabowo, who made a quick visit to Kuala Lumpur.
He also had discussions with Vietnamese prime minister Pham Minh Chinh in a virtual meeting, and agreed to focus on negotiations and avoid conflicts in achieving a fair resolution.
“This round of sweeping tariffs may only be the beginning of greater challenges to come,” Anwar said. “We must be mentally prepared to weather the potential storm ahead and work together to safeguard our continued prosperity.”
Anwar said all options would be explored to ensure the well-being of the people and business sectors. “The government will accelerate the economic and industrial reform agenda to build Malaysia’s long-term economic and industrial resilience,” he said.
“We affirm our determination to overcome and adapt to this challenge,” he said. “Make no mistake, we are taking these tariffs seriously because it challenges the fundamental principle underpinning global trade rules.”
Last week, the US president Trump announced a range of tariffs on more than 170 countries and territories, comprising almost all US trading partners.
US customs agents began collecting a unilateral 10% tariff on all imports from many countries on Saturday, with higher levies on goods from 57 larger trading partners due to start next week.
Almost all Malaysian products will be affected by the 10% levy, while most products will face a 24% rate from April 9, with some exemptions.