A steeper 19% United States tariff on Malaysian goods, compared with 10% for Singapore, could raise export costs and slow certain commodity movements through Malaysia’s trade routes, industry players warn.
Port Klang Authority general manager Captain K. Subramaniam said the higher tariff may place added cost pressures on exporters and reduce trade volumes for US-bound cargo routed via Malaysia. However, he noted the overall impact on Port Klang’s competitiveness would be limited, as the port functions mainly as a transshipment and regional hub.
“Port Klang remains buoyant on strong intra-Asia trade and robust shipping connectivity. Its competitiveness is anchored not only in tariff considerations but also in its strategic location, cost-efficiency, growing terminal capacity, and comprehensive logistics support,” Subramaniam said.
He said ongoing terminal upgrades, including the Westports 2 development and the planned Carey Island Port, aim to boost capacity and improve turnaround times. Enhanced digitalisation and competitive logistics services would also help retain and grow transshipment volumes.
Federation of Malaysian Freight Forwarders president Datuk Dr Tony Chia Han Teun warned the tariff differential could divert high-value transshipment and direct export volumes to Singapore, impacting Malaysia’s wider logistics ecosystem. He called for dialogue with US counterparts and stronger efforts to cut costs, improve port efficiency, and leverage free trade agreements.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz described the 19% tariff as “reasonable” and said it would not threaten Malaysia’s competitiveness, despite hopes for a lower rate.