To counter the reciprocal tariff measures imposed by the U.S. Trump administration, Malaysia is pushing its solar industry to shift toward expanding the domestic market. This aims to clearly distinguish Chinese transshipment practices and reduce dependence on exports. Although Chinese solar manufacturers have gradually scaled down production in Malaysia, some local firms remain cautious.

Malaysia plans to increase the share of clean energy in its power mix to 50% within five years, but solar power—a key renewable energy source—continues to face U.S. tariff headwinds. U.S. efforts to curb Chinese companies' tax avoidance via third countries like Malaysia have placed comprehensive pressure on the local supply chain. Deputy Minister of Investment, Trade and Industry Liew Chin Tong stated that the nation is striving to transform into a technology creator rather than a mere investment recipient, noting that a large middle class will persistently drive domestic energy demand. Maybank Investment Bank remains optimistic about favorable factors such as the advancement of large-scale solar projects, the integration of energy storage into future planning, and incentives for corporate renewable energy consumption.

Justin Sim, President of the Malaysian Photovoltaic and Sustainable Energy Industry Association, suggested leveraging the experience of Chinese leaders like LONGi to rebuild the local industry, pointing out that low-cost Chinese panels already account for 75% of the local market. While China's recent cuts to solar subsidies have created space for local manufacturing, companies like Malaysian Solar Resources remain wary of intense competition from Chinese manufacturers. The firm’s module production line, idled 12 years ago, still has no confirmed restart plan.
url:https://www.reccessary.com/en/news/domestic-market-becomes-key-malaysia-solar-strategy