Speaking at a seminar hosted by law firm Skrine, Liew said the government was strengthening enforcement and tightening oversight over certain imports and exports to prevent misuse and uphold Malaysia’s credibility in global trade.

He said tariffs not only made imported goods more expensive, but also triggered “second-order effects”.

“For instance, goods that were originally destined for the US market are now being redirected and flooding other markets, including ours.

“This creates serious challenges as the influx of imports could undermine our local producers,” Bernama quoted him as saying.

Liew also said the era of hyperglobalisation, where Malaysia and other Asean members compete to manufacture goods cheaply for export to major economies, was no longer viable.

“Trade should no longer be seen as an end in itself, but as a means to achieve a broader purpose,” he said, calling for a rethink of long-term trade strategies to adapt to the changing global landscape.

He said Malaysia must diversify its market and deepen ties with emerging economies in Central Asia, the Middle East, Africa and Latin America.

At the regional level, he said Asean must have a more integrated supply chain and cultivate its own consumer base.

“A stronger and more integrated Asean, with a strong middle class, will not only encourage major powers to engage with us as a single bloc but may also attract other emerging economies to trade, invest and grow alongside us,” he said.