Malaysia’s PM Anwar Ibrahim Says New US Tariffs Could Impact Key Microchip Exports, Despite BRICS Ties

Malaysia’s Prime Minister Anwar Ibrahim expressed concerns about potential U.S. tariffs affecting the nation’s economy, regardless of its recent BRICS partnership. In a recent CNN interview, Anwar highlighted that about 26% of Malaysia’s crucial microchip and semiconductor exports go to the U.S., meaning American protectionist policies could have significant effects on Malaysia’s export-driven economy.

Although known for his pro-Western stance during his 25-year opposition career, Anwar has embraced a more multipolar approach since taking office in 2022, joining the BRICS bloc of emerging economies. This move aligns Malaysia with countries like Brazil, Russia, China, and India in an effort to bolster trade ties amid global economic shifts. Anwar defended his decision to join BRICS, stating that Malaysia’s economy, reliant on international trade, would be impacted by any U.S. tariffs, BRICS membership notwithstanding.

Anwar’s comments follow President-elect Donald Trump’s campaign promises to impose 10% tariffs on all imports and up to 60% tariffs on Chinese goods, a policy that could further pressure Malaysia’s export sector. Nevertheless, Malaysia may see some economic gains from U.S.-China tensions. In recent years, Malaysia has benefitted from its strategic location as companies adopt a “China+1” strategy, moving supply chains away from China to avoid U.S. tariffs. According to the Malaysian Industrial Development Finance (MIDF), previous trade tensions led to a surge in Malaysia’s re-exports, which grew by 7.6% in 2019.

Anwar also acknowledged concerns over Trump’s previous remarks on human rights and policies affecting Muslims, yet he expressed optimism. “When you are holding office, hopefully you will get good advice and adjust accordingly,” he said, adding that he hopes “sanity will prevail” as Trump returns to office.