In a strategic move to safeguard Malaysia’s renewable energy sector from shifting U.S. trade policies, Prime Minister Datuk Seri Anwar Ibrahim announced a nationwide directive to increase the use of locally-manufactured solar panels in public institutions.
“All schools, universities, and hospitals must now use Malaysian-made solar panels,” Anwar stated, outlining a pivot designed to reduce reliance on imported technologies as global trade dynamics grow more unpredictable.
The announcement comes in response to recent remarks by former U.S. President Donald Trump, who said no solar panels should be exported to America due to concerns about Chinese-linked manufacturers operating in Southeast Asia, including Malaysia.
Anwar, however, emphasized that Malaysia’s solar industry is not monolithic. “We have a diverse mix of producers — many are independent of Chinese affiliations. This gives us room to maneuver,” he said, calling the shift towards local production a form of “creative disruption.”
Beyond the solar sector, Anwar acknowledged broader trade concerns linked to the U.S.’s evolving stance. Trump’s announcement of a 90-day grace period before imposing new tariffs has injected further uncertainty into Malaysia’s export outlook.
“About 60% of our exports to the U.S. — roughly RM130 billion — are in semiconductors, chips, and engineering and procurement (E&P) products. These are currently exempt, but if targeted later, we’ll need to adapt by strengthening domestic markets for these products,” Anwar noted during his remarks at the “Temu Anwar IPTS” forum at a local university on Monday (May 5).
Since taking office over two years ago, Anwar said his administration has actively diversified Malaysia’s trade partnerships to cushion against geopolitical shocks. “We’ve expanded our reach into India, China, Korea, Japan, and the ASEAN region,” he said, citing Egypt as a recent success story, where Malaysian investments have surged 34% over two years.
Malaysia is also pushing forward with multiple free trade agreements (FTAs). “We’re maintaining engagement with the U.S. while advancing FTA discussions with the European Union,” Anwar said. “And thanks to our recent FTA with the United Kingdom, Malaysian palm oil and other exports are now entering the UK market tariff-free.”
The move toward local solar panel adoption marks a decisive step in Malaysia’s strategy to assert more control over its economic resilience — not only responding to global headwinds, but turning them into momentum for homegrown innovation.
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