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50,000 Jobs in Malaysia at Risk from US-China Trade War – What Employers Must Know?
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50,000 Jobs in Malaysia at Risk from US-China Trade War – What Employers Must Know?

Leva
by Leva
Apr 09, 2025 at 03:02 PM

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The United States (US) and China are involved in an ongoing trade conflict.

They are placing taxes (tariffs) and limits on each other’s goods.

This is not just affecting them, it’s affecting other countries like Malaysia too.

Because of this situation, the Malaysian International Chamber of Commerce and Industry (MICCI) has warned that 50,000 jobs in Malaysia could be lost if no action is taken.

If your company depends on exports, imports, or raw materials from overseas, this issue could impact your business directly.

 

How the US-China Trade War Affects Malaysian Business

Many Malaysian businesses work with supply chains that connect to China, the US, or both.

When trade becomes more expensive or limited, businesses here can face:

  • Slower or delayed shipments
  • Higher costs for parts or raw materials
  • Less demand from overseas customers
  • Order cancellations
  • Financial pressure to reduce staff or freeze hiring
     

Industries at high risk include:

  • Electronics and semiconductors
  • Automotive parts and machinery
  • Palm oil and other commodities
  • Freight, logistics, and warehousing
  • Export-based manufacturing
     

MICCI’s Warning: Malaysia Needs a National Response

The Malaysian International Chamber of Commerce and Industry (MICCI) is asking the government to create a special economic council to help manage the situation.

This council would include:

  • Government agencies
  • Industry leaders
  • Employer groups
  • Trade experts

Their goal is to protect local businesses, save jobs, and keep Malaysia competitive in the global market.

 

5 Action Steps Businesses Should Take Now

Even as the government responds, Malaysian businesses must prepare their own operations to survive and grow in this uncertain time.

Strengthen Your Supply Chain with Local Alternatives

Many businesses are looking for local alternatives and smarter logistics strategies to reduce dependency on foreign suppliers.

Discover New Export Markets and Online Opportunities

SMEs in Malaysia can tap into global e-commerce platforms and regional trade networks to find new customers.

Empower Your Team with Digital Skills and Automation

Training your employees in digital skills, automation, and business continuity is key for future survival.

Take Advantage of Government Tax Reliefs and Grants

There are several tax reliefs and digitalisation incentives that Malaysian businesses can apply for right now.

Leverage Employer Associations for Support and Growth

Joining industry associations helps businesses stay updated on policies, get training, and share strategies.

 

Why This Matters for Your Business

If Malaysia doesn't act quickly, we risk falling behind neighbours like Vietnam and Indonesia, countries that are already attracting foreign investment due to their stable trade policies.

Proactive businesses that adapt early can protect jobs, avoid financial losses, and grow even during global uncertainty.

This is not just a global issue, it is now a local business threat. With 50,000 jobs at risk, MICCI is right to call for fast action.

Malaysian businesses must also take responsibility by adapting, training, and preparing.

By staying informed and responsive, your business can survive and thrive, even during economic uncertainty.

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Source: ET HRSEA


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With 50,000 jobs in Malaysia at risk due to the US-China trade war, businesses must take action now to protect operations, talent, and long-term growth.

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