Arya News - Malaysia`s Investment, Trade and Industry Minister Johari Abdul Ghani said exemptions from additional US tariffs on electrical and electronics (E&E) and semiconductor products have helped sustain Malaysia’s export growth, with shipments to the country rising by 69.1% in the same period.
KUALA LUMPUR – Malaysia continues to record strong trade growth with the United States, with total trade climbing by 39.6% to RM378.70bil despite additional tariffs on some exports in the first nine months of this year, says Datuk Seri Johari Abdul Ghani.
The Investment, Trade and Industry Minister said exemptions from additional US tariffs on electrical and electronics (E&E) and semiconductor products have helped sustain Malaysia’s export growth, with shipments to the country rising by 69.1% in the same period.
“Exports to the United States surged to RM282.07bil from January to September, driven mainly by strong demand for E&E products, particularly semiconductors, amid the rapid growth of artificial intelligence (AI) technology and data centres.
“A critical factor driving this growth was Malaysia’s strategic advantage in being exempted from additional US tariffs on most semiconductor and E&E products.
“The United States’ decision underscores the dependence of its supply chains on the E&E sector, which accounts for about 64.2% of Malaysia’s total exports to the United States. Semiconductors make up 44% of total E&E exports,” he said in a written parliamentary reply in Dewan Rakyat yesterday.
He was responding to Gombak MP Datuk Seri Amirudin Shari who asked about the impact of US tariffs on Malaysian industries throughout 2026 and the alternative markets explored by the government to enable Malaysian micro, small and medium enterprises (MSMEs) to export their products.
Johari said exports of rubber gloves, furniture and medical devices to the United States had declined.
The US market accounts for about 32% to 47% of Malaysia’s total exports of these products.
He said the ministry had conducted selected sectoral analyses to assess the actual impact on local industries, focusing on products for which the United States is a major export market and which are subject to additional tariffs but are not covered by tariff exemptions.
“From January to September 2026, Malaysia’s rubber glove exports to the United States fell by 1.6% to RM5.0bil, compared with RM5.1bil in the same period in 2025.
“Furniture exports also declined by 19.2% to RM3.77bil from RM4.67bil, while medical device exports decreased by 12% to RM8.74bil from RM9.93bil.
“This shows that although overall exports to the United States continued to record positive growth, several key Malaysian industries have faced pressure to absorb US tariff costs or offer discounts to buyers to maintain their competitiveness, sustain exports and preserve access to the US market,” he said.
Johari said the ministry was pursuing greater market access and opening up new markets through various free trade agreements (FTAs), while exploring non-traditional markets in the Middle East, Africa, Latin America and South Asia to minimise exposure to external shocks and strengthen the resilience of the country’s trade.
He said exports of rubber gloves, medical devices and furniture to alternative markets had recorded strong growth in the first nine months of 2026 compared with the same period last year.
“Rubber glove exports to Oman surged by 712%, Brazil (84.6%), Sweden (80.8%), Denmark (48.1%), the Netherlands (43.7%), Estonia (34%) and Canada (18.4%),” he said.
Medical device exports increased by 206% to South Korea, 74.9% to Singapore, 65% to Sweden, 59.1% to Brazil, 43.9% to Turkiye, 26.6% to Canada and 5% to the United Kingdom.
Furniture exports also recorded strong growth in Guyana (586.1%), Taiwan (140%), Switzerland (135.4%), Vietnam (99%) and New Zealand (68.3%).
Johari said the ministry would continue to monitor developments in US trade policy and take proactive measures to protect Malaysian exporters and minimise the impact of tariffs on MSMEs.