Speaking at a press conference here, Tengku Zafrul said while it was inevitable that the tariffs imposed by US president Donald Trump would affect companies’ investment decisions, members of the so-called “Magnificent Seven” which Putrajaya has engaged have confirmed that their plans remain on track.
“So far, the large ones we’ve met have committed to continuing with the investments they’ve already made,” he said.
“Of course, there are some smaller players who are more cautious. They’re waiting for greater clarity before making any decisions.”
The so-called “Magnificent Seven” are Apple, Microsoft, Amazon, Tesla, Google-parent Alphabet, Facebook-parent Meta and AI chip giant Nvidia.
Tengku Zafrul also said prominent American firms such as Intel and Oracle, which have significant operations in Malaysia, are also continuing with their investment plans.
“We had a phone call with Intel’s senior leadership in the US and Malaysia, and they reaffirmed their commitment (to investing in Malaysia),” he said.
“They stressed how important the entire supply chain in Malaysia is for their business viability.”
He added that Oracle’s leaders also met with Prime Minister Anwar Ibrahim recently, during which they raised some concerns but ultimately highlighted the company’s long-term commitment to their Malaysian operations.
On April 2, Trump announced stiff “reciprocal” tariffs on scores of countries, including Malaysia, which was hit with a 24% tariff rate.
With financial markets crashing, Trump did a U-turn by pausing implementation of the duties for 90 days on all affected countries except China, which was punished with a 145% tariff for “showing disrespect”.
China has since retaliated with a 125% tariff on US imports.
However, on Saturday Trump backtracked on China, saying smartphones and computers will be exempt from his tariffs.
Tengku Zafrul said Malaysia’s team in Washington has been in contact with the United States Trade Representative and other key agencies, adding that Putrajaya will need a “comprehensive strategy” to engage with the US.
He also said that a high-level Asean-US meeting will take place in Penang on April 24, with senior US trade officials scheduled to attend.
Noting that trade with the US accounted for only 11.3% of Malaysia’s total trade last year, he pointed out that the country still has the capacity to expand to other markets.