He said the central bank is awaiting further details from the US about the tariff; the full impact could only be assessed once negotiations are completed and the details are finalised.

“There is still room for negotiation, and we do not know yet the full extent, timing, or magnitude of the tariff, nor the scope and which products will be affected by the tariff.

“We need to closely examine the impact on inflation. At present, our inflation forecast remains between 2% and 3.5%,” he told Bernama during preparation for a meeting of Asean finance ministers and central bank governors.

When asked if the exemption of the semiconductor industry from the US tariffs was a relief for Malaysia, Rasheed simply replied, “Yes.”

US president Donald Trump announced on April 3 that the US would impose a basic 10% tariff on all countries and higher duties involving several countries, including a 24% tariff on Malaysia.

US customs began collecting the 10% across-the-board tariff on Saturday, with the higher levies on some countries, including Malaysia, to be imposed on April 9.