Malaysia’s solar industry, once a cornerstone of the nation’s economic growth, is now grappling with the consequences of U.S. trade policies. For years, the country benefited from Chinese investment that fueled its rise as a top producer of solar panels. However, the imposition of steep tariffs by the United States has drastically altered the landscape.
Over the last decade, Malaysia became one of the world’s largest manufacturers of solar panels, with the industry contributing significantly to the country’s exports and employment. But the recent tightening of U.S. trade restrictions has led to a sharp decline in demand, leaving only two solar panel makers operational today. This has triggered a wave of business closures and job losses, raising concerns about the long-term viability of Malaysia’s renewable energy sector.
Industry experts warn that the impact of U.S. tariffs extends beyond Malaysia, potentially disrupting global supply chains and affecting manufacturers in other countries that rely on U.S. markets. As the situation evolves, policymakers are under pressure to address the economic fallout and find solutions that balance trade interests with the need to support domestic industries.