Liberation Day for US but it’s Slowing Down Day for Malaysia ahead

Liberation Day for US but it’s Slowing Down Day for Malaysia ahead

I do still want to think that the tariffs will not affect Malaysia as much as some other countries where their exports can be easily replaced by other countries. Or they lack the number of US companies based there. The reason is because we have many US based companies here in Malaysia. Surely the tariffs are not meant to ‘kill’ all of them since their production is usually meant for export? Especially if it is to be exported back to the US with that huge tariff levied to Malaysia?

All the jobs will go back to the US?

I know, the tariffs are supposed to bring them back to US but this cannot happen suddenly and definitely not likely to happen without these companies suffering huge losses due to huge expenditures / investments to build / hire / produce and yet…

Lastly, if they area already producing in US then when they export to other countries, these countries are also increasing the tariff walls to US too… So how likely is the CEO going to decide to spend a lot of money to move all operations back to the US, then invest even more funds to build up the capability to build and then have to price those products at a super low margin or loss or else cannot export because they are also facing tariff from those countries who are retaliating against US? Funny but true…

So if you ask me, I think not yeah even if I am just a blogger. Nevertheless it does seem that many people have already decided that the tariffs will be very bad for some countries and an article recently also said that up to 50,000 jobs may be lost in Malaysia due to these tariffs. Article here.

Slowing down for the Malaysian economy

Take a look at all the latest news. Generally… not positive. I would not want to say it’s negative. Slowing down is quite certain.

Interest Rates could be cut to support the economy

When economy slows down, a lowering of interest rate will help to make investments more attractive. Buying a property for example will become cheaper with a lower monthly mortgage. Starting a business expansion for example would usually cost less because loans are cheaper plus the fact that less demand equals to lower prices too. It could also be to invest into the stock market instead since the FD rates will also be lowered with a lower interest rate. Just need to note that if the lowered interest rate does not do enough for the economy, then chances are it could be lowered further.

In fact, if the US economy slows down too, then the Federal Reserve may also cut rates too. We shall have to see what happens since the countries have started to approach US for a renegotiation. As of currently, I did not read any news about Malaysia and US’s discussion on the tariffs yet. Not taking an aggressive stance is fine actually.

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