Johari Ghani warns cheap imports could hurt local manufacturers

KUALA LUMPUR: The government is examining measures to reduce reliance on imported goods and protect domestic manufacturers amid concerns that cheaper foreign products are putting pressure on local businesses.

Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said his ministry was scrutinising products contributing to Malaysia's RM146 billion trade deficit with China last year, compared with a RM100 billion trade surplus with the United States.

He said the government wanted to identify products previously manufactured locally but now imported, resulting in some domestic manufacturers scaling down operations.

"We want to analyse all the products contributing to our substantial trade deficit with China. If our companies previously manufactured these products, why are they no longer able to do so?" he told the Dewan Rakyat today.

Johari warned that excessive reliance on cheap imports could undermine domestic manufacturing and leave consumers paying higher prices if local producers were driven out of the market.

He said the ministry had held a series of engagements with local companies, stressing the need for measures to safeguard Malaysia's long-term economic interests.

"We must take drastic action to ensure we can protect our economy without depending on countries that could adversely affect our economy as a whole," he said in response to a supplementary question from Datuk Adnan Abu Hassan (BN-Kuala Pilah).

Johari said Malaysia exported RM712 billion worth of electrical and electronics (E&E) products in 2025, compared with RM567 billion in imports. Non-E&E exports totalled RM897 billion, while imports stood at RM885 billion.

He said the government wanted to encourage local small and medium enterprises to produce more raw materials and semi-finished products domestically rather than rely heavily on imports, strengthening domestic supply chains and improving the country's trade surplus.

Johari also acknowledged the risks of relying heavily on the E&E sector, which accounted for 48.4 per cent, or RM656.14 billion, of total exports between January and August this year. He said the government was pursuing diversification through the New Industrial Master Plan 2030 and the National Semiconductor Strategy.