KUALA LUMPUR (May 16): Malaysia Semiconductor Industry Association (MSIA) members surveyed unanimously believe they will be unable to absorb any tariffs or similar trade actions. 

This stark finding highlights the deep concern within the Malaysian semiconductor industry regarding potential US tariff policies, according to the MSIA in a statement on Friday.

The MSIA E&E/Semiconductor Quarterly Pulse Survey for the first quarter of 2025 reveals that 65% of respondents anticipate a negative impact on the electrical and electronics (E&E) industry over the next year due to US policies and tariffs.

Furthermore, 74% fear that these policies will deter investments and diminish Malaysia's attractiveness as a business destination. 

While most E&E and semiconductor products have not yet been subjected to reciprocal tariffs, they are under review, which has raised alarm across the industry, read the statement.

The MSIA said that frequent changes to tariffs and export controls had already disrupted supply chains, increased costs, and slowed the global economy. 

MSIA president Datuk Seri Wong Siew Hai said: "These disruptions are expected to lower global demand, which will inevitably impact Malaysia and other major trading nations. The MSIA is hopeful that the Malaysian government will be able to negotiate with the US for more favourable tariff terms — especially in light of Malaysia’s five-decade-long contribution to the rise of US semiconductor giants.”