KUALA LUMPUR, April 8 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) erased earlier gains to close marginally lower on Tuesday as mild bargain hunting activities were offset by cautious mode over ongoing global uncertainties. At 5 pm, the benchmark index slipped 0.24 of-a-point, or 0.02 per cent, to 1,443.56 from yesterday’s close of 1,443.80. The benchmark index opened 7.63 points firmer at 1,451.43 and climbed to as high as 1,454.58 in early trade before retreating to a low of 1,440.89 towards the end of the morning trading session. It then moved in a yo-yo mode during the afternoon session. In contrast, the broader market was positive with gainers outpacing decliners 669 to 367, while 419 counters were unchanged, 894 counters untraded, and nine others suspended. Turnover dwindled to 3.32 billion units valued at RM2.83 billion against 5.35 billion units valued at RM4.67 billion on Monday.
Malaysia will face a 24% reciprocal tariff on all exports to the U.S. starting April 9, under a sweeping new U.S. trade policy designed to recalibrate economic relations with key partners.
Policy Overview
Under a new executive order, President Trump has rolled out a tiered global tariff system, effective:
April 5: 10% universal tariff on all U.S. imports
April 9: Elevated country-specific tariffs, including:
Malaysia: 24%
Cambodia: 49%
Vietnam: 46%
Thailand: 37%
China: 34%
Indonesia: 32%
Philippines: 18%
Singapore: 10% (baseline only)
The move is framed as a “reciprocity-driven recalibration” targeting:
Currency manipulation
Value-added tax (VAT) schemes
Non-tariff trade barriers
“We are restructuring global trade to reflect fairness and balance,” said Trump in a policy statement.
Implications for Malaysia
The 24% tariff rate significantly escalates trade friction with one of Malaysia’s top export destinations.
Sectors at risk:
Electronics
Palm oil derivatives
Machinery and components
Medical devices and rubber-based goods
The new rate erodes Malaysia’s competitive edge in the U.S. market, especially versus regional peers like Singapore (10%) and the Philippines (18%).
Strategic Context
The U.S. is targeting economies it accuses of suppressing domestic demand and leveraging trade imbalances.
The tiered system allows for adaptability, suggesting rates may be revised based on future trade talks or concessions.
Key Takeaways
Malaysia faces a 24% tariff on exports to the U.S., starting April 9—well above the 10% baseline.
U.S. trade policy shift could reshape ASEAN export patterns, favoring low-tariff economies like Singapore.
Exporters and policymakers should prepare for margin pressure, potential re-routing of trade, and renewed diplomatic negotiations.
Monitoring bilateral talks and currency policy commentary from Washington will be critical in the weeks ahead.
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