📊Executive Summary

Economists predict a decline in Malaysia's industrial production as front-loading activities to avoid US tariffs unwind. The industrial production index (IPI) grew by 3% year-on-year in June, but this growth is expected to moderate due to the implementation of a 19% tariff on Malaysian exports to the US, effective August 8. A significant concern is the potential 100% tariff on semiconductor products, which could severely impact Malaysia's electrical and electronics exports, constituting 40% of total exports. This situation poses risks to Malaysia's trade outlook and could dampen export momentum, particularly for the electronics sector already facing global demand challenges and supply chain disruptions....