KUALA LUMPUR: Malaysia’s solar-panel industry could forfeit as much as four per cent of its export value if Washington enforces new anti-dumping and countervailing duties on photovoltaic (PV) products from four Southeast Asian nations, including Malaysia, according to market observers.
The warning follows a preliminary ruling by the US International Trade Commission (US-ITC) that cheap imports from Malaysia, Thailand, Cambodia and Vietnam have “materially injured” US manufacturers. A final “yes” vote would trigger duties once the US Commerce Department formalises the orders.
Potential Billions at Risk
Global PV trade topped US $40 billion in 2021. Based on that benchmark, UOB Kay Hian Wealth Advisor head of investment research Mohd Sedek Jantan estimates Malaysia could absorb a revenue hit running into the “billions” if US demand retreats by roughly 30 % under higher tariffs.
“The solar industry is a cornerstone of Malaysia’s energy sector, which itself contributes nearly 20 % to GDP,” Mohd Sedek told Bernama. “Over-reliance on a single major market that favours protectionist policies exposes manufacturers to outsized risk.”
Geoeconomic Hedge Strategy
To cushion the blow, Mohd Sedek advocates a “Geoeconomic Hedge Strategy” that redirects export growth toward Europe, India and Latin America, reducing dependence on the US market and diversifying supply-chain risk.
Industry View: Local Value-Chain Needed
Lee Choo Boo, managing director of Itramas Corporation Sdn Bhd, said any tariff-induced sales slump in the US could be tempered by ongoing renewable-energy projects at home—but warned of currency headwinds.
“If recessionary fears prompt Bank Negara Malaysia to cut rates, the ringgit may weaken against the US dollar. That would raise the local cost of PV technology components we import in US dollars,” Lee explained.
He argued Malaysia must accelerate efforts to “move up the value chain,” develop a domestic component ecosystem and reduce reliance on imported technology.
“As an industry, we can’t just build power plants with foreign parts; we need a resilient local supply chain,” he stressed.
The US-ITC’s final determination and the Commerce Department’s tariff orders are expected later this year. Industry players and policymakers alike will be watching closely to gauge the impact on Malaysia’s fast-growing solar-export sector.
— BERNAMA
