Malaysia must leverage its global semiconductor status
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SHAH ALAM – Experts are calling on Malaysia to assert its strategic role as a vital partner to the United States (US) in global trade, particularly in the semiconductor sector, amid ongoing tariff negotiations.
Malaysia University of Science and Technology (MUST) economics expert Professor Emeritus Dr Barjoyai Bardai highlighted that Malaysia, with over 50 years of experience in the industry, has become the world's sixth-largest semiconductor producer, contributing 13 per cent to the global market.
He stressed that Malaysia's semiconductor partners are predominantly major American companies, reflecting a deep interdependence between the two nations. Malaysia University of Science and Technology (MUST) economics expert Professor Emeritus Dr Barjoyai Bardai
'They are heavily reliant on us when it comes to semiconductors. If we were to suddenly halt operations due to higher tariffs, the entire US semiconductor supply chain would be disrupted.
'That's why, during negotiations, we must emphasise Malaysia's strategic value as a partner in the semiconductor industry.
'At the same time, Malaysia should also position itself as a credible intermediary for the US to conduct international trade with China,' he told Sinar Harian.
Previously, the US announced a 25 per cent import tariff on all Malaysian products starting Aug 1, a move seen as a clear signal that Malaysia must strengthen its trade diplomacy and boost its export competitiveness.
In response, Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said on Tuesday that the Cabinet is expected to deliberate on the issue.
Although Johari assured that there is still room for negotiation before the enforcement date, the remaining time, less than a month, presents a major challenge for the government.
Barjoyai acknowledged that the US and China are engaged in a trade conflict, but highlighted that both nations remain economically dependent on one another.
'If the US stops trading with China, they lose access to a massive market.
'However, both sides are stubborn. This is where Malaysia can step in as a neutral hub.
'We have a real opportunity here, especially given Malaysia's central role in the rapidly advancing electrical & electronics (E&E) and semiconductor industries,' he added.
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