In his closing remarks at the 12th Asean Finance Ministers and Central Bank Governors Meeting, Anwar alluded to the 90-day pause on tariffs by the US.
Malaysia is one of the countries subjected to a temporary reprieve announced by US president Donald Trump earlier today, but it does not extend to China.
“Of course, now there’s a temporary reprieve, but at the same time, there is a very strong, hardened position (from the US) with China, which is also a problem for us, because it will impact our economy and therefore our position in Asean centrality,” said Anwar, who is also the finance minister.
While placing a 90-day pause on the tariffs, Trump raised tariffs on Chinese imports to 125%, marking a dramatic increase from the previous 104% rate.
In response, China imposed retaliatory tariffs of 84% on all US goods entering its market.
China has been Malaysia’s largest trading partner for 15 consecutive years, with total bilateral trade between the two nations reaching US$190.24 billion (RM856.08 billion).
Major Malaysian exports to China include integrated circuits, palm oil, computers and plastic products.
However, Anwar said Asean would continue to pursue strong ties with Washington, especially in trade and investment.
“Our position is clear that we are for free trade. We are guided by rule-based systems,” he said.
Earlier, in his closing remarks, Anwar said Asean must continue to maintain balanced ties with its neighbours, including China, Japan and South Korea.
He said this could be achieved if the region’s fundamentals remain strong, which includes peace.
“Meaning that we are friendly with all our neighbours. As I have said, China is a very important player,” he said.
Later, during a post-meeting press conference, finance minister II Amir Hamzah Azizan said Malaysia does not welcome any form of “dumping” in the market.
It was first reported in March that Southeast Asia was at risk of becoming the world’s steel dumping ground after the US began tightening its trade barriers.
“We have a mechanism (to monitor). If people behave properly, we won’t see such occurrences. If it occurs, we have the necessary tools,” Amir added.
Malaysia has been taking several actions against dumping, including imposing anti-dumping duties on imports of certain goods like steel, steel wires and tinplate.
It has also been initiating investigations into alleged dumping practices, with the investment, trade and industry ministry playing a key role.