KUALA LUMPUR, April 30 (Bernama) -- Last-minute buying lifted Bursa Malaysia’s benchmark index, reversing earlier losses as higher oil prices boosted sentiment for energy- and chemical-related counters. Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said regional markets remained under pressure following negative cues from Wall Street, compounded by surging oil prices, mixed earnings, and a cautious US Federal Reserve stance. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) increased 1.60 points, or 0.09 per cent, to 1,722.02 from Wednesday’s close of 1,720.42. The benchmark index opened marginally lower at 1,720.23 and moved between a low of 1,712.14 and a high of 1,722.03 throughout the day. Market breadth, however, was negative, with losers trouncing gainers 816 to 360. A total of 546 counters were unchanged, 950 were untraded, and 77 were suspended. Turnover declined to 2.91 billion un...
Quick Summary
Malaysia’s effective US tariff rate may ease to 14.3%
US Supreme Court struck down Trump’s reciprocal tariffs under IEEPA
Malaysia remains relatively competitive within ASEAN
Electronics and semiconductor exports continue to enjoy exemptions
What Changed?
The Supreme Court of the United States ruled that President Donald Trump did not have authority under the International Emergency Economic Powers Act (IEEPA) to impose reciprocal tariffs.
Following the ruling:
The US replaced them with a blanket Section 122 tariff, initially 10%, later raised to 15%
US Customs stopped collecting tariffs deemed illegal from Feb 24
Malaysia’s Effective Rate: What It Means
According to Maybank Investment Bank:
Current effective US tariff rate: 15.6%
Expected to settle at: 14.3%
Overall US headline tariff: 15%
Malaysia’s rate remains:
Lower than Indonesia, Vietnam, Thailand and the Philippines
Slightly above the global 15% rate due to product-specific duties
Why Malaysia Remains Resilient
Several major export categories remain exempt:
Semiconductors
Electronics
Pharmaceuticals
These sectors account for a significant share of Malaysia’s US-bound exports, cushioning the impact of tariff changes.
Singapore continues to enjoy the lowest effective tariff rate in ASEAN, while countries with fewer exempted exports face higher duties.
Will Trade Policy Volatility Continue?
Maybank IB cautioned that uncertainty remains:
The US could still use Section 301 (unfair trade practices)
Or Section 232 (national security probes)
Product-specific exemptions (e.g. pharma) may be reviewed
However:
Section 122 tariffs can only last 150 days unless extended by Congress
Future measures are expected to be more targeted, not broad-based
China+1 Strategy Intact
Despite narrower tariff differentials with China:
Supply chain diversification under the China+1 strategy remains intact
AI-related global investments continue supporting Malaysia’s electronics exports
Key point: Malaysia’s relative positioning in ASEAN is largely unchanged.
Bottom Line
Malaysia’s tariff outlook has improved modestly — but uncertainty remains.
While effective duties may ease below 15%, the broader trade environment is still fluid. That said, Malaysia’s strength in semiconductors and electronics keeps it competitively positioned within ASEAN.
Key Takeaways
Effective US tariff could fall to 14.3%
Supreme Court ruling reduces broad tariff risk
ASEAN tariff competitiveness ranking unchanged
Electronics sector remains shielded
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