GEORGE TOWN: The Electrical Industry Workers’ Union (EIWU) has voiced concern over the United States’ move to impose a 24 per cent import tariff on Malaysian products, particularly from the electrical and electronics (E&E) sector.
Union general secretary Md Zaimi Muhamad Yusof said today this move posed a threat to thousands of jobs in the long term.
“Beyond undermining the global perception of fair trade, the tariffs hurt the competitiveness of Malaysian exports.
“In addition to the immediate impact on trade volumes, these measures are likely to force companies to adopt cost-cutting strategies.
“This could include workforce reductions and other actions that harm workers’ rights and welfare.”
The E&E industry is one of Malaysia’s primary export drivers, with the US being a key trading partner.
In 2023, Malaysia’s E&E exports to the US totalled RM161.3 billion, accounting for 62.8 per cent of Malaysia’s exports to that country.
Zaimi said these tariffs were expected to dampen demand for Malaysian-made products.
“Several manufacturers in the electrical sector have strongly opposed the tariffs, warning of reduced output and potential layoffs.
“These concerns are compounded by several market challenges. These include export market saturation, high global inflation affecting consumer spending, and rising operational costs.
“Notably, the minimum wage increased by 25 per cent in 2022, and it was revised to RM1,700 in February this year.
“Together, these factors have eroded financial sustainability and operational resilience.”
He said two companies represented by the union plan to close by the end of 2025, affecting nearly 2,000 workers, most of whom are over 45.
As one of Malaysia’s largest trade unions, representing more than 10,000 workers from more than 40 companies, Zaimi said EIWU called on the government to act with urgency.
“We urge the Investment, Trade and Industry Ministry to initiate diplomatic engagement with the US to pursue tariff exemptions or relief mechanisms.
“At the same time, we call on the ministry to adopt a firm position against this policy in international trade forums and to strengthen safeguards for Malaysia’s industries.
“EIWU urges employers to communicate with workers and collaborate with unions to ensure fair treatment during this challenging time.”
Prime Minister Datuk Seri Anwar Ibrahim said the US’ basis for calculating the 24 per cent tariff on Malaysian imports was “fundamentally flawed.”
He refuted the US claim that Malaysia imposed a 47 per cent tariff on US imports.
-NewStraitsTime