US expected to announce Malaysia overcapacity investigation results within four weeks

The United States is expected to announce the results of its investigation into Malaysia’s alleged overcapacity within three to four weeks, according to Investment, Trade and Industry Minister Johari Abdul Ghani.

Johari said the investigation was nearing completion, but Malaysia was still negotiating with Washington over how the term “overcapacity” should be defined. He said the forced-labor issue had been resolved, leaving the definition of capacity as the main point under discussion.

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They are close to finalising the investigation into overcapacity. I think the forced-labor issue has been resolved.

Malaysia is concerned that the US definition may include capacity originating in third countries. “Whatever excess capacity there is, their definition also includes third countries,” Johari said. He added that the issue remained under discussion.

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Whatever excess capacity there is, their definition also includes third countries. That is the issue we need to address. The matter is still in process.

The United States has told Malaysia that the process will take about three to four weeks, followed by legal review and approval before an official announcement. Johari said Malaysia would meanwhile maintain the current situation.

He said Malaysia currently faces a 10% tariff as part of US action affecting 60 economies under Section 301 of the Trade Act of 1974. Malaysia is among 17 economies receiving the lower rate, while other economies face a 12.5% tariff. Johari said Malaysia had repeatedly explained to the United States that it does not have excess capacity.

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For now, we remain with the current situation.