Malaysia’s semiconductor exports remain exempt from US tariffs, says Johari Ghani

Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani delivers his speech at EU-Malaysia Business Day 2026: Selangor in Focus at the Kuala Lumpur Convention Centre, October 13, 2026. — Bernama pic

First Published: Tuesday, 13 Oct 2026 3:48 PM MYT

KUALA LUMPUR, Oct 13 — Malaysia continues to enjoy tariff exemptions for its semiconductor exports to the United States, said Investment, Trade and Industry Minister (Miti) Datuk Seri Johari Abdul Ghani.

He emphasised that Malaysia has yet to receive any indication that Washington will impose tariffs on the sector’s exports. 

“We have not received any indication that the US will impose tariffs on Malaysian semiconductors at this time,” said Johari in a press conference at the European Union-Malaysia Business Day 2026: Selangor in Focus here today.

He said negotiations with the US under Section 301 covered four issues, namely forced labour, excess production capacity, the environmental standards and government subsidies.

“Environment and state subsidies, we are fine. We are not subject to anything because we are clear.

“The forced labour issue has been finalised, with Malaysia subject to a 10 per cent rate, compared with 12.5 per cent for other countries. Only 17 economies have been charged 10 per cent.

“The only thing that is not finalised is excess capacity. We do not have excess capacity,” said Johari.

He said that any excess capacity associated with goods exported from Malaysia could be from third countries, adding that Malaysia would seek clarification from the US on the countries identified as contributing to the issue.

“That (excess capacity) is from a third country. We will commit (but) they must give us a list that they assume is a country that is subject to excess capacity. Then we will take them out from our list,” said Johari.

He said access to overseas markets depended on meeting the respective countries’ requirements and regulations.

“At the end of the day, any market that you want to go to is up to them. What are their criteria? What is the law that we need to comply with? Then we need to comply; otherwise you cannot go,” he said. 

Johari said the EU imposed strict environmental requirements on its trading partners. 

“As long as you can comply, then that is it. Likewise, I think any other country does not matter. Everyone has a unique requirement,” he said. 

The EU-Malaysia Business Day 2026: Selangor in Focus was held in conjunction with the Selangor International Business Summit (SIBS), scheduled from October 14 to 17, 2026.

Hosted by the Delegation of the European Union to Malaysia, the third edition of the annual flagship event was organised in collaboration with the Selangor state government, Invest Selangor and Eurocham Malaysia.

Held under the theme “Bridging Innovation-Powering Progress”, the event aimed to advance business ties and further unlock investment opportunities involving the substantial EU business presence in Malaysia.

With over 550 EU companies operating in Selangor, generating a total annual revenue of over RM51 billion, the event highlights high-growth and high-value sectors such as advanced manufacturing, green transition, digitalisation and logistics.

Also present were EU Commissioner for International Partnerships, Jozef Sikela, and Ambassador of the EU to Malaysia, Rafael Daerr. 

Sikela said that investing alongside Malaysia would strengthen and diversify the semiconductor ecosystem on which both economies increasingly depend.

“We live in a world of geopolitical tensions, economic disruptions and growing competition over critical technologies in the world, which is becoming more and more like a world where controversial and resilient supply chains and trusted, mutually beneficial partnerships matter more than ever,” he said.

Sikela said the resumption of negotiations on the Malaysia-EU Free Trade Agreement (MEUFTA) would further deepen economic ties, citing Lumut Maritime Industrial City as another potential area for collaboration.

“The Lumut Maritime Industrial City is another good example of opportunities ahead, bringing together infrastructure, industry, logistics and potential for greener maritime activities,” he said. — Bernama