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US-China Tariff War Threatens Malaysia's Economy and SMEs

4/29/2025

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Summary

Story summary

The US-China tariff war could increase Malaysia's inflation by 0.5 percentage points.
Malaysia's GDP growth forecast may decline by 2.6 percentage points due to US tariffs.
66% of SMEs are worried about the tariffs, as they export to the US.
Bank Negara Malaysia is considering interest rate cuts to mitigate economic pressures.

History

Historical Context

The current US-China tariff war echoes the 1997 Asian financial crisis, which severely impacted Malaysia's economy. Then, Malaysia faced currency speculation and economic contraction. Today, tariffs threaten GDP growth, prompting Bank Negara Malaysia to consider interest rate cuts, reflecting ongoing vulnerabilities in the nation's economic landscape.

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Story summary

The US-China tariff war could increase Malaysia's inflation by 0.5 percentage points.
Malaysia's GDP growth forecast may decline by 2.6 percentage points due to US tariffs.
66% of SMEs are worried about the tariffs, as they export to the US.
Bank Negara Malaysia is considering interest rate cuts to mitigate economic pressures.

1 / 2