By Lian Cheng
KUCHING, May 28: Sarawak is expected to experience minimal direct impact from the United States’ reciprocal tariff though rising trade tensions and uncertainties may weaken external trade and domestic demand.
Sarawak’s trade ties with key Asian partners remains strong, supported by Free Trade Agreements (FTA) to diversify and expand exports.
“Despite challenges in Q1 2025, Sarawak maintained strong trade ties with major partners and recorded a trade surplus of RM16.8 billion,” said International Trade, Industry and Investment Minister Datuk Amar Awang Tengah Ali Hasan when presenting his ministerial winding up address at the Sarawak Legislative Assembly here today.
While trade fluctuated, the surplus demonstrates the resilience of the economy and ability to navigate evolving global trade dynamics, he explained.
He said Sarawak’s trade remains a key driver of economic growth, reflecting resilience amid global uncertainties with major trading partners are Japan, China, South Korea and India.
While imports grew by 3.1 percent to RM64.5 billion, boosted by petroleum products, motor vehicles and aluminium ore. The trade surplus expanded 1.5 percent, reaching RM69.3 billion, indicating steady growth in key traded goods, he added.
In face of US reciprocal tariffs, he said, Malaysia as ASEAN chairman is leading efforts to strengthen ASEAN’s role in negotiations with the US, aim to mitigate disruptions and ensure regional economic stability.
“At the same time, Sarawak is deepening global trade relationships, particularly with EU and Middle East, leveraging regional agreements such as Regional Comprehensive Economic Partnership (RCEP) and the ASEAN-China FTA to tap into new markets.
“Thus, local SMEs are encouraged to optimise resources, boost efficiency and explore trade prospects through business-matching initiatives,” said Awang Tengah who is also Deputy Premier. — DayakDaily
