Malaysia is discussing with chip companies based in the country whether they can absorb the impact of potential US tariffs on semiconductors, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul AzizTrade Minister Tengku Zafrul Aziz said in an interview with Reuters on Wednesday (March 5), as the country looks to hedge against risks to its export-driven economy.
US President Donald Trump said in February that he intended to impose tariffs on semiconductors starting at "25% or higher", though it is unclear when this decision could be made.
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US President Donald Trump said in February that he intended to impose tariffs on semiconductors starting at "25% or higher", though it is unclear when this decision could be made.
WATCH MORE: https://thestartv.com/c/news
SUBSCRIBE: https://cutt.ly/TheStar
LIKE: https://fb.com/TheStarOnline
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NewsTranscript
00:00If it happens on our semiconductor industry, definitely will have a negative impact, right?
00:11So that's why we're discussing with the companies, because how we expect the country is that
00:19depending on the level of tariff, you know, whether that tariff will be absorbed by the
00:24consumers, right?
00:25And that means the tariff will continue, the export will continue to happen, but someone
00:31has to pay for the higher cost, whether it be the consumers or whether it be the company
00:35that absorbs.
00:36When we talk to the data center players, the Microsoft, the Google, the AWS, the rest of
00:41them, there is not a concern because the allocation under Tier 2 is adequate, right?
00:48And the concern is who will use it, right?
00:51There is more.
00:52So that's why I mentioned about the security safeguards, et cetera, on that technology.
00:57Not so much.
00:58So like I said earlier, there will be no impact so far, right, from the growth and the data
01:05center that has been committed because AI will be used by many.