Friday 29 Mar 2024
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KUALA LUMPUR (Jan 25): CIMB IB Research has maintained its  2018 real gross domestic product (GDP) growth and gross export forecasts for Malaysia unchanged at 5.2% and 9.8%, respectively.

In an economic note Jan 24, the research house examined the possible backlash from the U.S. tariffs on solar imports.

The research house however said it  remains mindful of the downside risks that accompany Malaysia’s trade dependence, with total trade amounting to 139% of GDP in 9M17, and its susceptibility to the threat of rising trade protectionism from the Trump administration, as the US accounts for 10% of Malaysia’s total exports.

The U.S. slapped import tariffs of up to 30% on imports of photovoltaic (PV) cells and modules for 4 years.

CIMB Research said Malaysia is largest PV exporter to the US, with a market share of 30% of US PV imports.

It said PV exports to the US accounted for 1.1% of Malaysia’s total exports in 2016.

“A complete halt in PV exports to the US is unlikely, but tariffs may erode Malaysia’s market share/margins and disincentivise relocation of foreign PV firms to our shores,” it said.

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