Malaysia rejected the US claims about excess production capacity and forced labor as trade talks between the two countries continue, The Star reported Friday, citing Investment, Trade and Industry Minister Johari Abdul Ghani.
Johari said the country does not have surplus production capacity and denied claims that foreign goods are being routed through Malaysia for export to the United States. He said Malaysia's manufacturing sector operates based on genuine market demand and complies with international labor standards. Authorities are reviewing concerns related to forced labor in global supply chains and considering tighter import screening measures, according to the report.
The United States is currently conducting a broader trade review covering several economies, focusing on issues such as subsidies, environmental rules, and labor practices. Malaysia said it continues to engage with US officials as tariff-related measures remain under evaluation, the news outlet said.
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