SARAWAK will continue to refine the state’s economic policies by adapting to global trade dynamics, in line with proactive measures introduced by the federal government to address the impact of the United States’ (US) reciprocal tariff.
International Trade, Industry and Investment Deputy Minister Datuk Dr Malcolm Mussen Lamoh said while the US-imposed tariff has disrupted global supply chains and production, its direct impact on Sarawak’s economy remains limited.
“In 2023, Sarawak’s exports to the US amounted to RM1.2 billion, making up only 0.9 per cent of the state’s total exports,” he said when responding to a question from Johnical Rayong Ngipa (PDP–Engkelili) during the Sarawak Legislative Assembly (DUN) sitting today (May 20).
He noted that the main product exported to the US was ferro alloy, while Sarawak’s major export items remain liquefied natural gas (LNG), petroleum, palm oil, and aluminium.
“These key commodities contributed RM102.6 billion in 2023, accounting for 78.4 per cent of Sarawak’s overall exports.
“Majority of Sarawak’s exports are bound for Asian markets, which made up 73.4 per cent of total exports last year,” he said.
Mussen said that while the direct exposure to the US market is limited, Sarawak will stay vigilant and continue strengthening its economic resilience.
Among the federal government’s key measures to counter the effects of the tariff are strengthening trade partnerships; diversifying export markets and enhancing supply chain resilience; investing in strategic industries; and exploring bilateral trade agreements to safeguard national economic stability.
He said a National Geoeconomic Command Centre (NGCC) has also been established to formulate a comprehensive strategy to mitigate the impact of the US tariff on Malaysia’s economy and its key sectors.
“Malaysia will continue strategic high-level engagement with the US, and the Ministry of Investment, Trade and Industry (MITI) will utilise the Malaysia-US Trade and Investment Framework Agreement (TIFA) to address these concerns,” he added.
Dr Mussen stressed that Sarawak will continue to leverage its economic strengths while fostering deeper partnerships to sustain growth and enhance resilience amid ongoing global uncertainties.
