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Tariff tensions spur Malaysia to rethink role in global solar supply chain. (Photo: iStock)
In response to the U.S. government's reciprocal tariff measures under the Trump administration, Malaysia is urging its solar industry to pivot and expand the domestic market. The goal is to clearly distance itself from Chinese transshipment practices and reduce reliance on exports.
Although Chinese solar manufacturers have been gradually retreating from production in Malaysia, some local players remain cautious.
Government pushes domestic market expansion
Malaysia aims to increase the share of clean energy in its power mix to 50% within five years. However, solar, the country’s key renewable energy source, continues to face headwinds from U.S. tariffs. Washington’s efforts to curb Chinese firms from bypassing duties via third countries like Malaysia have tightened pressure across the entire local supply chain.
