- US tariff decision on Malaysian exports expected on August 1.
- Malaysia aims for 4.5 to 5.5 percent GDP growth in its five-year plan.
- RM611 billion allocated for development with public-private funding.
Malaysian Premier Anwar Ibrahim announced on Thursday that the US tariff rate on Malaysian products will be revealed on Aug 1 after his phone call with US President Donald Trump.
According to sources familiar with the discussions, the two nations talked about a tariff rate under 20 percent, requesting to remain anonymous as the talks are confidential.
Malaysia will incur a 25 percent tariff on its exports to the US unless an agreement with Washington is finalized by Friday. This would have surpassed the deals revealed so far with Southeast Asian partners, as products from the Philippines and Indonesia encounter tariffs of 19 percent, while Vietnam faces 20 percent.
The two nations have conducted various discussions, with Malaysia's trade minister noting that several contentious issues persist, especially regarding non-trade barriers.
Anwar mentioned he talked about tariffs “in the spirit and principle of free trade” in his conversation with Trump.
“After the explanation I provided, (Trump) decided to review the tariff rates imposed on Malaysia, with an announcement expected (on Friday). We pray, God willing, that it will help and not burden our country’s economy,” Anwar said in a speech to parliament to present the country’s new five-year economic plan.
Anwar mentioned that Trump assured he would participate in the upcoming Association of South-East Asian Nations (ASEAN) summit in Malaysia this October.
Anwar stated during the unveiling of the new five-year plan that Malaysia aims for annual GDP growth of 4.5 percent to 5.5 percent from 2026 to 2030, with a deficit below 3 percent of GDP by the end of that timeframe.
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Malaysia aims for an annual export growth of 5.8 percent in the plan and will work to maintain inflation within an average range of 2 percent - 3 percent during this period, he stated.
“The next five years will be a crucial period for Malaysia to not only transition into a high-income nation but also to provide a high quality of living for the people,” Anwar said.
Malaysia is set to dedicate RM611 billion (S$185 billion) to the economic strategy, with RM430 billion sourced from government funds, while the remaining amount will be provided by government-linked firms and the private sector.