KUALA LUMPUR, April 14 — Minister of International Trade and Industry Datuk Seri Tengku Zafrul Abdul Aziz today gave assurance that the Malaysian economy is still “under control”, as the world continues to reel from the chaos wrought by US President Donald Trump’s about face on tariffs.

The senator told reporters after the National Geoeconomic Commend Centre held a briefing with the prime minister here, that his ministry is working around the clock to monitor the “fluid” situation, and are taking proactive measures to mitigate any potential fallout including speeding efforts to diversify trade with other economic blocs.

“As you know the situation is fluid but Miti and other agencies are taking proactive measures to make sure Malaysia’s strategic interests are protected,” he said.

“But we must acknowledge that global supply chains are intertwined so if something happens to a particular market there will be domino effects on Malaysia and other related countries…I’d like to stress, however, that our economy remains under control and our fundamentals are still solid,” the minister added. “Still, we must always act fast.”

Malaysia was slapped with a 24 per cent “reciprocal” tariff on most exports that Trump claimed is aimed at reducing the US’s massive trade deficit with 180 countries, but the US president has since paused the roll out after investors rattled the US bond market by dumping US treasuries, driving yields up.

The US was Malaysia’s second largest trading partner last year, accounting for more than a tenth of total exports.

Zafrul said while Putrajaya welcomes the Trump’s recent announcement to exempt electronic devices like smartphones and laptops from steep duties, Malaysia cannot afford to let its guards down.

“Our response will be based on three thrusts: Reform, engage and diversify,” the minister said.

“Engagement means we will continue to engage with the US at all levels, as well as with industries. Diversify will be us speeding up talks with other economic blocs and markets. Reform is to reform our economy to consolidate our supply chain capacity.”

Exporters have continued to trade with the US with no major cancellations on orders or for the expansion plans to date, while giant US tech firms like Intel and Oracle have also expressed their commitment to stay in Malaysia, Zafrul said.

But some smaller firms have been shaken the minister said.

“There are smaller ones that are concerned. They are waiting for more visibility because it’s very hard for companies today to make informed decisions to expand or not, but you cannot discount the fact that this will definitely affect decisions of companies,” he said.