Malaysia Likely to Seal U.S. Trade Deal, Tariff Could Drop to 15% -- Market Talk

Dow Jones
Jul 08, 2025

0423 GMT - Malaysia is expected to secure a trade deal with the U.S. before the revised Aug. 1 tariff deadline, potentially lowering its 25% rate to around 15%, MIDF says in a note. Citing Vietnam's recent agreement, which saw tariffs fall to 20% from 46%, MIDF expects Malaysia's final rate to also be reduced. It sees risks to markets easing in 2H as geopolitical tensions and U.S. trade uncertainty fade. Any market pullback is viewed as a buying opportunity, with a balanced stock-picking strategy recommended, it adds. MIDF maintains its end-2025 KLCI target at 1590 and 2025 GDP growth forecast at 4.0%, noting the slight tariff increase has limited economic impact. Top picks include Tenaga Nasional, IHH Healthcare and Hong Leong Bank. The KLCI is 0.5% lower at 1530.20. (yingxian.wong@wsj.com)

 

(END) Dow Jones Newswires

July 08, 2025 00:23 ET (04:23 GMT)

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