Trump’s Reshoring Drive: Boon for Malaysia?
Nazery said that US companies manufacturing abroad which are affected by the tariffs will not automatically embark on reshoring despite the rather protectionist measures undertaken by their government to safeguard their interests by imposing high tariffs on imports.
“The established order of the global supply chain and well-entrenched global manufacturing ecosystem dictate that companies seek places with the lowest cost of production; abundant and cheap labour; closest proximity to raw materials, components and target markets; good trade infrastructure; and favourable legal or institutional regimes.
“They will likely seek countries with lower tariff regimes instead of quickly relocating to the US,” he added.
He said this could give countries like Malaysia an opportunity to lure US manufacturing companies to Malaysia’s shores with the various incentives and favourable conditions being offered.
Westports Holdings Bhd reported that tariff rates among key global trading nations escalated to unprecedented levels following decades of globalisation and the resulting inflationary pressures could curtail consumers’ purchasing power and consumption, elevating the risk of an economic slowdown or even a recession in major trading nations.
Lower containerised trade could emerge as a near-term impact. However, regional trade realignment and Asia’s economic dynamism could partially mitigate the downward pressure on container volume, the port operator said.
“The interim uncertainties and adjustments may pause containerised trade growth, but a new equilibrium, Asia’s economic dynamism and Malaysia’s commitment towards multilateral trade will reestablish a new baseline for sustained future long-term growth.
“We are keeping our guidance which we provided at the beginning of the year, which is low single-digit growth. We think it is too premature to make a change now. If there is a need, we will do so later,” the company said.
Suria Capital Holdings Bhd managing director Datuk Ng Kiat Ming said the company’s subsidiary, Sabah Ports Sdn Bhd, continues to monitor the recent implementation of US tariffs and its potential impact on regional trade flows.
As of now, he said, Sapangar Bay Container Port (SBCP) has not experienced any negative effects from the tariffs and the port has actually recorded a positive performance in the first quarter of 2025, with throughput volume rising 11 per cent year-on-year for the January-to-March period.
“Notably, March 2025 saw a 23 per cent increase in volume compared to the same month last year, reflecting a healthy surge in regional shipping activity and a strong start to the year. This growth is largely driven by intra-Asia trade and the increasing presence of regional shipping lines calling at SBCP,” he said when contacted.