THE Government will seek to have itself removed from any list of countries flagged by the United States for excess production capacity, as Washington weighs a proposed 100 per cent tariff on imported semiconductors.
Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said Malaysia had received no indication that the US intended to impose tariffs on its semiconductor exports, but discussions under Section 301 remained unresolved over excess capacity.
“So far, there is no indication that the US will impose any tariffs on semiconductors from Malaysia,” he told a press conference at EU-Malaysia Business Day 2026 held in Kuala Lumpur on Tuesday.
Johari said excess production capacity was the only outstanding issue among four areas raised in the trade discussions, which also covered forced labour, environmental standards and government subsidies.
He said Malaysia would ask Washington to identify the countries it considered to have excess capacity, arguing that any such problem associated with Malaysia could originate from third countries.
“Malaysia will request a list of countries identified as having excess capacity so that we can seek to have those countries removed from the list,” he said.
Johari said Malaysia had no issues concerning environmental standards or government subsidies, adding that the country did not subsidise companies to export products to international markets and complied with environmental standards set by developed economies.
US President Donald Trump had proposed imposing a 100 per cent tariff on imported semiconductor chips, raising concerns over potential trade barriers for chip-exporting economies such as Malaysia.
Johari said exporters had to meet the laws and requirements of their destination markets.
“Any market we want to enter has its own criteria and laws that must be complied with. If we do not comply, we cannot enter that market,” he added. - October 13, 2026