Malaysia Seeks To Mitigate US Tariff Impact, Keep Maritime Industry Competitive -- Loke

PETALING JAYA, July 15 (Bernama) -- Transport Minister Anthony Loke has expressed hope that the ongoing negotiations with the United States (US) government, ahead of the potential imposition of a 25 per cent tariff rate on Malaysia from Aug 1, will help mitigate the impact on the country’s maritime industry and ensure it remains competitive.

He noted that the maritime sector is currently performing well, supported by higher trade volumes at ports operated by MMC Corporation Bhd and Westports Holdings Bhd.

“Currently, we are doing well. If you look at our ports, they are performing strongly because volumes have increased,” he said.

“In fact, we are awaiting the announcement by Lloyd’s List this August that will confirm that Port Klang is among the top 10 busiest ports in the world,” he told reporters after officiating the Malaysia Maritime Week (MMW25) today.

Hence, Loke said, the government is doing its utmost to leverage all available diplomatic channels to secure a better deal with the US.

“We are using our diplomatic advantages to negotiate a better outcome so that we can hopefully mitigate any negative impact,” he said.

Last week, Prime Minister Datuk Seri Anwar Ibrahim said Malaysia will continue negotiations with the US following the imposition of a 25 per cent retaliatory tariff on Malaysian products.

Earlier in his welcome address for MMW25, Loke said the ports in Malaysia play a crucial role in the nation’s economy, supporting trade and improving logistics capabilities.

He said that despite the global uncertainty, Malaysia has maintained its position as a leading maritime hub.

Loke said the Port Klang and the Port of Tanjung Pelepas (PTP) continue to lead the charge, consistently ranking among the world's busiest seaports, and are expected to set new performance benchmarks in the coming weeks.

Speaking to reporters later, he said that “every month we are looking at almost a 10 per cent growth for PTP in terms of volume.

“Of course, PTP is growing very strongly due to the consolidation between Maersk and Hapag-Lloyd. They have formed the Gemini Cooperation alliance and have made PTP their major hub in Southeast Asia.

“Meanwhile, Port Klang is consistent and growing steadily,” he said.

In Malaysia, about 96.4 per cent of the country’s trade is transported by sea. In 2024, Malaysia recorded its best trade performance ever, with total trade reaching RM2.879 trillion. 

-- BERNAMA