Anwar Urges ASEAN Unity and Domestic Reform to Tackle U.S. Tariff Challenges

Anwar Urges ASEAN Unity and Domestic Reform to Tackle U.S. Tariff Challenges

Butterworth, The Gulf Observer: Prime Minister Datuk Seri Anwar Ibrahim has called for collective action and regional solidarity in response to the recent announcement of a 24% tariff imposed by the United States on Malaysian imports. Speaking during the state-level Aidilfitri Madani 2025 celebration at the PICCA Convention Centre in Butterworth, Anwar emphasized that Malaysia would rely on its strengths and strong diplomatic ties, particularly with ASEAN neighbours, to navigate the economic challenge.

“All 10 ASEAN member nations must act in unison, and not just Malaysia alone, to address the implications of this development,” he stated.

Anwar underscored the importance of internal reform and resilience, urging the nation to set a positive example by ensuring peace, economic stability, and transparent governance. “We must fix weaknesses, eliminate corruption, and speed up approvals. Corruption, laziness, and inefficiency must stop,” he said, highlighting that these are essential conditions for national recovery.

Acknowledging that reforms often meet resistance, Anwar stressed that the government’s aim is not personal or political gain but national development. “We are not pursuing success for pride. We are doing it to create jobs, strengthen the economy, and upgrade our schools, hospitals, rural clinics, and infrastructure,” he said.

He also called for Malaysia to embrace technological advancement, including artificial intelligence, as part of its forward-looking economic strategy.

Addressing concerns raised by Penang, which is heavily reliant on semiconductor exports valued at over RM200 billion—60% of which are destined for the United States—Anwar revealed that he had spoken with Chief Minister Chow Kon Yeow. “I advised him that every crisis brings choices. We can either complain and surrender or channel our energy into finding new solutions,” he said.

In response to the U.S. tariff measures, Penang has announced the formation of a tariff monitoring task force and the development of a support toolkit to assist affected industries.

The 24% tariff on Malaysian goods follows an announcement on April 2 by U.S. President Donald Trump, who unveiled a new baseline tariff of 10% on global imports, with steeper duties imposed on selected countries, including Malaysia. Although a 90-day pause on the new tariffs was announced on Wednesday, a 10% levy on most global exports remains in effect.

Prime Minister Anwar concluded with a message of determination: “I believe we can bring about the changes and successes that we want. But it will take courage, unity, and a relentless drive for reform.”