The implementation of America's reciprocal tariffs, including on Malaysia, requires the country to implement proactive measures to address the threat of tariffs.
There are three steps that can be taken in addressing the tariff issue.
The first step is for Malaysia to increase its exports to the United States (US) involving electrical and electronic products.
Malaysia's exports to the US last year reached around RM192 billion, with more than half of that coming from electrical and electronic exports.
This increased export situation makes Malaysian goods to the US more expensive and reduces the purchasing power of consumers in America.
Next, Bank Negara Malaysia needs to play a role in setting policies by considering increasing its gold reserves.
A strong amount of gold reserves plays a role in providing a better support structure for the economy.
Finally, the government needs to increase national production, in its role in reducing artificial inflationary pressures.
This needs to be driven by increased productivity following organically increased production, thereby reducing dependence on imported products.
In conclusion, these three measures are not solutions to the tariff issue, but methods that can be seen to reduce pressure on the national economy.
