KUALA LUMPUR, April 3 - The 24 percent retaliatory tariff imposed by the United States (US) on Malaysia is expected to have a mixed impact on the country's economy, especially in the export and foreign investment sectors.

UOB Kay Hian Wealth Advisors Head of Investment Research, Mohd Sedek Jantan said that although the tariff has the potential to squeeze the profit margins of export companies and reduce price competitiveness, it also opens up new opportunities for the country's economy.

Sectors with competitive advantages are expected to survive, especially the medical glove sector which has the potential to remain resilient due to higher tariffs imposed on major competitors such as China.

"For foreign investment, tariff pressures may cause investors to postpone investment decisions in Malaysia until trade policies become clearer, which could contribute to slower GDP growth in the second quarter of 2025.

"However, Malaysia's relative competitive advantage compared to regional countries such as Indonesia (36%), Vietnam (46%), and Thailand (32%) could attract foreign investments in certain sectors," he said when contacted by RTM.