KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Putrajaya Urges Constructive Talks with Washington Amid 25% Tariff Shock
Malaysia is urging the United States to return to the negotiating table after Washington’s surprise announcement of a 25% tariff on Malaysian exports, effective August 1, raised alarm over potential disruptions to critical trade and investment flows.
The Ministry of Investment, Trade and Industry (MITI) confirmed that it is maintaining constructive engagementwith US officials and remains committed to reaching a balanced and mutually beneficial trade agreement.
“Dialogue is the best way forward,” MITI stated, emphasizing that unilateral trade actions could harm global supply chains, investor confidence, and the livelihoods of businesses and workers on both sides.
A Relationship Too Big to Break
The US stands as Malaysia’s second-largest trading partner and top export destination. In 2024, bilateral trade soared nearly 30% to RM324.9 billion (US$71.4 billion):
Exports to the US: RM198.7 billion (US$43.7B)
Imports from the US: RM126.3 billion (US$27.7B)
The shock tariff decision—described as reciprocal by US authorities—could undermine this fast-growing economic corridor, particularly in sectors like electronics, semiconductors, palm oil, and machinery, which are deeply integrated into global supply chains.
Mitigation in Motion
MITI reaffirmed Malaysia’s commitment to protecting its domestic economy, pledging intervention measures to support local businesses, industries, and consumers if negotiations stall.
“We will take all necessary steps to mitigate the impact,” the ministry noted.
The Malaysian government is also expected to reassess 2025 GDP projections, trade forecasts, and inflation outlooks in response to the tariff risks, with analysts anticipating potential adjustments in the coming weeks.
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