KUALA LUMPUR, Dec 5- Malaysia takes note of the threat of a potential 100 percent tariff increase by the United States on BRICS member countries if they pursued the use of a new currency.

Investment, Trade, and Industry Minister, Tengku Datuk Seri Zafrul Abdul Aziz said trade relations between Malaysia and the United States is important for both countries.

He stated that Malaysia, as a partner country in BRICS, will continue to closely monitor developments regarding possible tariff increases by the US following the change in leadership, which is expected to impact the country.

"Based on current statistics, where in 2023, the US was Malaysia’s third-largest trading partner, while Malaysia was the 19th-largest trading partner of the US," he said in the Dewan Rakyat today.

"Therefore, any move to impose a 100 percent tariff would only harm both parties, who are mutually dependent on efforts to prevent disruptions in the global supply chain, considering that the US dollar still plays a significant role in the global financial system” said Tengku Zafrul.

He said this when responding to a question from Bentong Member of Parliament, Young Syefura Othman, about Malaysia’s stance regarding the potential increase by US President-elect Donald Trump, who had proposed imposing a 100 percent tariff on BRICS countries if they pursued the use of a new currency.

According to Tengku Zafrul, Malaysia will also continue to closely monitor any developments that may impact the use of other currencies by Malaysia in trade and investment matters.

"This needs to be carefully examined by the government, and any decision on this matter should be based on the national interest and aligned with the country's current policies," he added.