To consider business incentives after tariff negotiations - Zafrul

The Investment, Trade, and Industry Ministry (Miti) will consider introducing a special incentive package for businesses affected by the United States’ tariff after assessing its impact, in addition to evaluating its effect on the country’s fiscal position.

Its minister, Tengku Zafrul Abdul Aziz, said the government will focus on negotiations with the US starting today, with the main objective of ensuring that no tariffs are imposed on the country, particularly in key sectors.

“We may give it until July because, for now, we are focusing on discussions with the US. Whatever the outcome, we will then know the impact.

“At this moment, we know the basic tariff imposed on Malaysia is 10 percent, but at the same time, there are sectors that are not subject to tariffs.

“So once we know who is affected, which companies are affected, and which parts of the supply chain are affected, that’s when we can make a decision,” he said during a question-and-answer session in conjunction with his ministry’s Q1 2025 performance report card media briefing.

Zafrul said his ministry also needs to discuss with the Finance Ministry to assess the impact of the special package on the country’s fiscal position.

“Miti does want to help businesses and small and medium-sized enterprises, but there are issues that need to be examined in terms of the country’s fiscal position,” he added.

Negotiations will be held virtually and will be led by ministry deputy secretary-general (Trade) Mastura Ahmad Mustafa, as Malaysia’s chief negotiator, with the Assistant US Trade Representative for Southeast Asia and the Pacific Sarah Ellerman, Zafrul said.

He said this yesterday at a press conference after the special parliamentary meeting on the US tariff.

The initial discussions are to determine the scope and technical issues to be addressed during the negotiations to reach an agreement or decision in a win-win situation.

- Bernama

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