KUALA LUMPUR (Reuters) – Malaysia stated on Thursday any try by the incoming Trump administration to impose tariffs on BRICS nations for attempting to create a brand new forex or use alternate options to the greenback may trigger world semiconductor provide chain disruptions.
The BRIC grouping of main rising economies initially included Brazil, Russia, India and China, and has since expanded to soak up different nations.
Malaysia has utilized to be a part of the bloc, which goals to problem a world order dominated by Western economies, however has not but been formally accepted as a member.
Commerce minister Tengku Zafrul Aziz stated Malaysia was intently monitoring developments after U.S. President-elect Donald Trump stated BRICS members would face 100% tariffs except they dedicated to not creating a brand new forex or supporting one other forex that will exchange the USA greenback.
Tengku Zafrul famous the USA was Malaysia’s third-biggest commerce associate and U.S. corporations have been the principle traders in its semiconductor sector. Malaysia is a serious hub which accounts for about 13% of worldwide chip testing and packaging.
“As such, any move to impose a 100% tariff will only harm both parties which are depending on each other for efforts to prevent disruptions in the global supply chain,” he stated in a parliamentary reply.
He added that whereas BRICS nations have mentioned lowering reliance on conventional commerce currencies such because the U.S. greenback, there was no official choice made on de-dollarisation efforts.
The grouping doesn’t have a standard forex, however long-running discussions on the topic have gained some momentum after the West imposed sanctions on Russia over the warfare in Ukraine.
On Monday, Russia stated any U.S. try and compel nations to make use of the greenback would backfire, and solely strengthen efforts amongst nations to change to nationwide currencies in commerce.
