15/03/2026

NATIONAL 2 theSun on Sunday MAR 15, 2026 US expands trade investigations

Exporters must ensure supply chains free from forced labour, comply with global labour requirements: Minister Ű BY QIRANA NABILLA MOHD RASHIDI newsdesk@thesundaily.com environmental protections and government subsidies.

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before Washington decides whether to proceed with further investigations involving nearly 60 countries that run trade surpluses with the US, including Malaysia. The probe is part of a broader move by the Office of the United States Trade Representative to examine alleged unfair trade practices among several economies, including Malaysia, China, Japan, India, South Korea and European Union members. It focuses on issues such as “structural excess capacity” in manufacturing sectors where large production output and persistent trade surpluses may distort global markets and burden US commerce. Reuters reported that the investigations could potentially lead to new tariffs if the US determines that certain countries’ policies or practices

Johari said the investigation would examine several aspects, including the possibility of export price-dumping, compliance with international labour standards, environmental protection and government subsidies. He said investigators are examining whether countries sell goods to the US at prices far lower than what they charge in their own domestic markets, a practice that could harm American industries. Malaysia could face trade action if the probe finds that international trade rules have been violated. Under Section 122 of the Trade Act of 1974, the US government can impose a temporary tariff of up to 10% while investigations continue. Johari said the temporary measure could only remain in place for about five months

American industries. According to US trade officials, the investigations will also examine whether countries have taken adequate steps to prohibit the importation of goods produced with forced labour and whether failure to address such practices gives foreign producers an unfair cost advantage over American firms. Johari said Malaysia would provide clarification to the US regarding allegations of overcapacity and the use of forced labour which are among the issues under investigation under Section 301. He added that the government would continue engaging with US authorities to ensure Malaysian exporters remain compliant with global trade rules while safeguarding the country’s trade interests.

He said companies exporting to the US must meet standards set by the International Labour Organisation (ILO) and ensure that forced labour is not used anywhere in their supply chains. “So this is not only an investigation into Malaysia but also into 60 countries. As a trading nation with the US and with exports worth RM233 billion annually, we must comply. “Therefore, all our companies exporting to the US must ensure that they comply with these conditions.”

PETALING JAYA: Malaysian exporters to the United States (US) must ensure that their supply chains are free from forced labour and comply with global labour standards as Washington expands trade investigations that could affect nearly 60 countries. Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said the probe, conducted under Section 301 of the Trade Act of 1974, would examine labour practices, export pricing,

Growing strain on nation’s finances PETALING JAYA: Malaysia may need to brace for prolonged inflationary pressures if global energy prices remain elevated, as continued fuel subsidies could place a growing strain on public finances, say economists. Taylor’s University research cluster lead for innovative management practices Prof Dr Poon Wai Ching said the current fuel subsidy framework, while effective in cushioning short term price shocks for consumers, could become increasingly fiscally burdensome if international oil prices remain high over an extended period. “This would also limit the government’s fiscal flexibility to respond to other economic priorities. Policymakers may need to consider a comprehensive and forward-looking strategy that balances immediate consumer protection with long-term fiscal sustainability.” Poon said measures such as gradual subsidy rationalisation, targeted assistance for vulnerable households, diversification of energy sources and accelerated investments in renewable energy and energy efficiency could help strengthen Malaysia’s economic resilience. She said the Middle East conflict and disruptions to maritime traffic through the Strait of Hormuz have affected the global energy market. She pointed out that the strait is among the world’s most critical maritime chokepoints, with about one-fifth of global seaborne oil and liquefied natural gas passing through the narrow waterway. “Market analysts have already warned that a prolonged disruption could precipitate a severe and sustained energy crisis, with crude oil prices potentially escalating well beyond recent levels due to constrained supply and increased geopolitical risk premiums.” Poon said the situation could have broader macroeconomic consequences for countries. “Such cost-push pressures may subsequently translate into broader inflationary trends within the Malaysian economy, affecting both household consumption and industrial competitiveness.” Putra Business School economic analyst Assoc Prof Ida Md Yasin also highlighted that Malaysia may eventually need to review its fuel pricing structure if global oil prices continue to rise sharply. – By Qirana Nabilla Mohd Rashidi

Monitor food supply chains, market conditions, says Fomca PETALING JAYA: While supermarket shelves may still be well stocked, close monitoring of supply chains and market conditions remains crucial amid global uncertainties, said the Federation of Malaysian Consumers Associations (Fomca). costs, global commodity prices and supply chain pressures.” Saravanan said strict enforcement against hoarding and unjustified price increases is essential to ensure fair distribution of essential goods and to protect consumers. Saravanan advised consumers to practise prudent spending, compare prices and refrain from purchasing non-essential items to better manage their finances during periods of challenging economic conditions. – AMIRUL SYAFIQ/THESUN

needs, there won’t be shortages.” Civil servant Mohd Rashidi Hashim, 52, said rising household expenses have made him more careful with his family’s spending, especially as Hari Raya approaches. Agriculture and Food Security Minister Datuk Seri Mohamad Sabu said the public need not worry about food availability as the current situation remains stable, with supplies of rice, chicken, eggs, fish, beef, fresh milk, vegetables and fruits expected to remain adequate until at least May or June. He said most of Malaysia’s food imports do not pass through major conflict routes in West Asia, as many are sourced from countries such as India, Pakistan, Asean nations, Brazil, Argentina, New Zealand and Australia. “The Cabinet has also agreed to increase national rice stockpiles to ensure continued food security. Rice reserves will be expanded to cover up to nine months of supply.” – By Qirana Nabilla Mohd Rashidi

“Consumers are reminded to remain calm and avoid unnecessary stockpiling. It is always best to purchase according to actual household needs and plan spending carefully.” He advised consumers to practise prudent spending, compare prices and refrain from purchasing non-essential items to better manage their finances during periods of challenging economic conditions. Public sector worker Syafiq Ismail, 28, said he welcomed the assurance that food supplies remain sufficient but expressed hope that prices would stay stable. He added that transparent updates would reduce speculation and prevent unnecessary panic buying. “If everyone buys according to their

Its CEO Dr Saravanan Thambirajah said stakeholders should remain alert to any early warning signs of food supply disruption. He said consumers are not only worried about supply levels but also the affordability of basic food items as rising living costs continue to put pressure on households. “While supplies may be sufficient, maintaining stable prices is equally crucial to sustaining consumer confidence. At the moment, we have not seen widespread complaints about shortages of essential food items. “However, consumers do continue to express concerns about the rising cost of certain food products, and these are often linked to broader factors such as transport