TSLA
Tesla
-- 385.410 NVDA
NVIDIA
-- 143.820 RGTI
Rigetti Computing
-- 18.6999 AMD
Advanced Micro Devices
-- 122.310 AAPL
Apple
-- 243.460 
Trump's Tariffs are Back: What Does It Mean for Malaysia?
Recently, Trump announced on the social media platform Truth Social that on his first day in office, January 20 2025, he will sign an executive order imposing an additional 10% tariff on imported goods from China, while imposing a 25% tariff on all imports from Mexico and Canada. This move could signify the official launch of Tariff Policy 2.0.
During his presidential campaign, he promised that if re-elected, he would impose tariffs of up to 20% on foreign goods and a 60% tariff on all Chinese goods.
Looking back at Trump's first term, ASEAN countries largely benefited from the "China + 1" strategy, with some companies relocating their supply chains from China to surrounding regions. Malaysia also gained from this shift in trade dynamics. Specifically, in terms of industries, as the U.S. dollar continues to strengthen, the Malaysian ringgit has depreciated, resulting in significant benefits for export-oriented companies.
Semiconductors
In recent years, investments from the U.S. and China have driven the rise of data centers in Malaysia. Companies like $NVIDIA (NVDA.US)$ have partnered with $YTLPOWR (6742.MY)$ to establish manufacturing facilities, while tech giants such as $Alphabet-C (GOOG.US)$ and $Microsoft (MSFT.US)$ have provided billions of dollars in investments.
Data centers require well-developed park infrastructure and a significant amount of electricity, which has stimulated both upstream and downstream industries, as well as the local construction sector. As one of the largest semiconductor exporters, Malaysia may once again become a preferred supply source for many tech giants during the global supply chain restructuring. Companies like $YTLPOWR (6742.MY)$, $TENAGA (5347.MY)$, and construction and semiconductor firms such as $SUNWAY (5211.MY)$, $IJM (3336.MY)$, and $INARI (0166.MY)$ are likely to benefit from this trend.
Glove Manufacturers
Due to the higher tariffs imposed by the U.S. on medical gloves manufactured in China, the prices of Chinese gloves in the U.S. market have increased. Reports indicate that the U.S. plans to raise tariffs on rubber gloves from 7.5% to 25% by 2026, making Malaysian glove products relatively more competitive.
Malaysian Deputy Minister Chen Hongjian mentioned that Malaysia's market share for rubber gloves in the U.S. currently stands at 44%, which is below the historical average of 55%. With the rising costs of Chinese gloves, Malaysia is expected to regain or even surpass this average market share.
Palm Oil
Malaysia is the world's second-largest producer of palm oil. During Trump's first term, China reduced its imports of soybeans from the U.S. and increased its demand for Malaysian palm oil. According to a report by the Malaysian Palm Oil Board (MPOB), Malaysia exported approximately 186,000 tons of palm oil to China in 2018, becoming the third-largest exporter to the country.
On the other hand, the U.S. Customs and Border Protection (CBP) had imposed import restrictions on Malaysian palm oil companies, such as FGV Holdings and Sime Darby Plantation, in 2020, citing concerns over forced labor.
Electric Vehicles
As the U.S. imposes high tariffs on electric vehicles and their components, Chinese manufacturers are beginning to seek alternative production bases to mitigate these costs. Malaysia has emerged as one of the preferred locations for these companies due to its geographical advantages, mature manufacturing infrastructure, and relatively low production costs. For instance, $GEELY AUTO (00175.HK)$ has partnered with Malaysia's largest automotive company, Proton, to jointly develop their first electric vehicle. Additionally, $GWMOTOR (02333.HK)$ has established an assembly plant locally and is further expanding its production and sales network.
According to the "New Industrial Master Plan 2030," the plan aims for electric vehicle sales to make up 15% of total new car sales by 2030, increasing to 38% by 2040.
However, it is also important to note that Malaysia is a significant exporter of automotive components. If the U.S. imposes higher tariffs on automotive parts. The relevant industries in Malaysia may face negative impacts, potentially encountering higher costs or losing market share.
In summary, Trump's tariff policy has led to a restructuring of the global supply chain, with Malaysia emerging as an alternative production base that attracts more foreign direct investment, bringing new opportunities for economic growth.
However, this has also increased trade uncertainty, potentially leading to rising raw material and production costs. In light of the new political landscape and the impact of "gradual tax increases," investors need to conduct comprehensive assessments and closely monitor policy changes to navigate market fluctuations and potential risks.
Source: nytimes, MPOB，moomoo
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
104088143 : What happened?
103827803 : good
103827803 : good
Vasanthan : I’m abit confused @Moomoo News MY why $SIMEPROP (5288.MY)$ under plantation?
Alice Lim choo :
HowTC_Invest Vasanthan : I also noticed this error...should be SDG (5285)
Moomoo News MY OP HowTC_Invest : Thanks for your attention, we will update as soon as possible![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
and you are welcome to make more suggestions at any time~![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Moomoo News MY OP Vasanthan :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Thank you for your suggestion, soooo great, we will update it as soon as possible![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")