In 2025, Malaysia is actively pursuing stronger trade relationships with Russia and Brazil as a strategic response to tariffs imposed by the United States. Prime Minister Anwar Ibrahim has emphasized the government's commitment to carefully navigating these tariffs while seeking alternative trade partnerships to bolster economic resilience.
Diversification Strategy
Malaysia's approach involves diversifying its export markets by engaging with rapidly developing economies like Russia and Brazil. This aligns with the nation's medium-term economic strategy, which prioritizes macroeconomic stability, global trade resilience, and increased foreign direct investment.
Key Engagements and Initiatives
Prime Minister Anwar Ibrahim is scheduled to visit Russia to further these discussions. Malaysia is also deepening cooperation with BRICS nations, which include Brazil, Russia, India, China, and South Africa, to explore opportunities in green technologies, digital transformation, and infrastructure development. As the ASEAN Chair for 2025, Malaysia aims to strengthen regional cooperation and enhance supply chain resilience, positioning ASEAN as a hub for trade and investment.
Addressing US Tariffs
The United States' tariffs, including a 24% levy on Malaysian goods, have prompted Malaysia to seek new trade agreements and address Washington's concerns. These concerns include trade imbalances, non-tariff barriers, safeguarding US technology, and investment alignment. Malaysia is also providing relief measures for small and medium-sized enterprises (SMEs) affected by the tariffs.
Economic Outlook
Despite these efforts, the International Monetary Fund (IMF) has revised Malaysia's economic growth forecast for 2025 from 4.7% to 4.1% due to the impact of US tariffs and a weaker global outlook. The government is actively assessing the situation and exploring new markets to mitigate potential economic disruptions.