US manufacturers turn towards Malaysian inputs after tariffs
Manufacturing respondents reported RM42.86 billion in project costs within their Malaysian operations for 2024-2025, almost 51 per cent above the previous survey.
American manufacturers in Malaysia are turning more towards local supplies after US tariffs took effect, with 34 per cent of survey respondents increasing their Malaysian input share, according to the American Malaysian Chamber of Commerce (AMCHAM).
At the presentation of the findings in Kuala Lumpur, AMCHAM chief executive officer Datuk Siobhan Das said reliance on China had fallen among 43 per cent of manufacturers buying inputs from that country. No manufacturers reported an increase in that reliance.
Das said manufacturing respondents recorded RM42.86 billion in total project cost within their Malaysian operations for 2024-2025. The figure was almost 51 per cent higher than in the previous survey.
Changes aimed at meeting rules-of-origin requirements involved sourcing or production strategies at 36 per cent of respondents. Although manufacturers adjusted sourcing, pricing and production, 86 per cent said their underlying business model had not changed significantly, Das said.
Malaysian Investment Development Authority chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said American companies regarded Malaysia’s skilled workforce as a strength. However, recruiting people with the latest skills remained difficult, particularly for advanced engineering, digital, data and artificial intelligence roles.
The findings were based on responses from 88 AMCHAM member companies, including American multinationals. The participants spanned manufacturing and services, alongside agribusiness, extraction and energy.
