Business : Malaysia’s Semiconductor Exports To US Remain Exempt From Tariffs - Johari

Malaysia's semiconductor exports to the United States remain exempt from US tariffs, according to Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani. In a press conference at the EU-Malaysia Business Day 2026: Selangor in Focus, Johari reiterated that Malaysia has received no indications of the US planning to impose tariffs on its semiconductor exports.

The negotiations under Section 301 touch upon four key issues: forced labour, excess production capacity, environmental standards, and government subsidies. Johari clarified that Malaysia is not subject to the environmental and state subsidies concerns, as the country meets these criteria. Malaysia has finalized the forced labour issue, being charged a 10% rate compared to 12.5% for other countries.

However, the issue of excess capacity remains unresolved, as Malaysia does not possess excess capacity. Johari mentioned that any excess capacity linked to Malaysian exports could stem from third countries, and Malaysia would seek confirmation from the US on the specific nations included in this consideration. Access to foreign markets is contingent upon meeting the respective country's requirements and regulations.

Johari emphasized that each market has unique criteria and laws that must be adhered to. The EU-Malaysia Business Day 2026: Selangor in Focus, held alongside the Selangor International Business Summit, aimed to strengthen business ties and investment opportunities, particularly in advanced manufacturing, green transition, digitalisation, and logistics.