Machang MP Wan Ahmad Fayhsal Wan Ahmad Kamal said the country’s economy faces serious risks from the 24% tariff rate that the US has imposed on Malaysian imports, which have been put on hold for 90 days for negotiations.

Wan Fayhsal said apart from a detailed backup plan in case the discussions with the US reach a dead end, Malaysia also needs a “trade war readiness plan” and fast-tracked aid for small businesses.

Wan Fayhsal claimed that the government’s lack of direction regarding the tariffs was hurting investor confidence, pointing to a RM10 billion foreign capital outflow over the past three months and a sharp drop in the KLCI index.

“This is not the time for a business-as-usual attitude. We need a government with a war mentality, not just one that negotiates,” he told FMT.

“The government seems too confident that negotiations with the US will solve everything. But history has shown that it is not easy negotiating with (US president Donald) Trump.”

Wan Fayhsal also claimed the government was slow to respond to Trump’s tariffs, which were announced on April 2. He said this was despite clear signs since last November that US protectionist policies would return when Trump won another term.

He added that the non-disclosure agreements (NDAs) surrounding the tariff negotiations pointed to a lack of transparency, which would make it harder for businesses and the public to plan on how to mitigate risks associated with the tariffs.

Earlier today, Prime Minister Anwar Ibrahim said the tariff discussions were subject to an NDA, which he said was in line with international practices when issues are sensitive and of strategic interest.

Anwar said tariff policy recommendations that require approval will go through a comprehensive review process, including at the Cabinet level or even in Parliament.