Malaysia is concerned about potential tariffs from the incoming United States administration, which could affect the global semiconductor supply chain.

This follows President-elect Donald Trump’s suggestion of imposing 100% tariffs on BRICS nations if they adopt a new currency or alternatives to the US dollar.

The BRICS group includes Brazil, Russia, India, and China, along with other members. Malaysia has applied for membership and is watching developments closely.

The US is Malaysia’s third-largest trading partner and a key investor in its semiconductor sector.

Malaysia contributes 13% to global chip testing and packaging.