Johari Ghani: US forced labour issue resolved, excess capacity still pending

by Theleaders | September 1, 2026 2:18 pm

KUALA LUMPUR, Sept 1 — The United States (US) is expected to announce the findings of its investigation into excess capacity involving Malaysia in about three weeks to four weeks, said Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani.

He said the investigation is close to being finalised, while Malaysia continues to engage with the US on the definition of excess capacity.

“They have almost finalised the excess capacity investigation. I think we are already done on the forced labour issue.

“On excess capacity, this is where we need to engage. I will continue to explain to them that we do not have excess capacity,” he told reporters after delivering his keynote address at the 43rd MAJECA-JAMECA Joint Conference here today.

Johari said Malaysia’s concern is that the US definition of excess capacity also takes into account capacity originating from third countries.

“Whatever excess capacity, their definition includes the third country. That is where we need to manage. So, it is still a work in progress,” he said.

He said the US had indicated that the process would take about three weeks to four weeks before undergoing legal clearance ahead of an official announcement.

“For now, we stay where we are today,” he said.

Earlier in his keynote address, Johari explained that the current 10 per cent tariff forms part of a broader US action involving 60 economies under Section 301 of the Trade Act 1974, with Malaysia among 17 economies subjected to the lower tariff rate.

The remaining economies are subject to a 12.5 per cent tariff, he said.

“Imagine, we were selected for 10 per cent, but we did a lot of engagement. We engaged the US and explained to them we don’t have excess capacity,” he said.

MAJECA stands for the Malaysia-Japan Economic Association, while JAMECA stands for the Japan-Malaysia Economic Association.

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