Palm oil, semiconductor and glove stocks rise after Malaysia-US tariff deal
28/10/2025 (The Malaysian Reserve) - SHARES of companies in the palm oil, semiconductor and glove sectors advanced on Bursa Malaysia following the signing of a Malaysia-United States tariff agreement on Sunday.
Among plantation counters, United Plantations Bhd gained 2.08% to RM24.50, SD Guthrie Bhd rose 2.86% to RM5.40, and Kuala Lumpur Kepong Bhd (KLK) added 1.85% to RM20.90.
Technology-related stocks also climbed, with Malaysian Pacific Industries Bhd (MPI) up 1.87% to RM30.54, KESM Industries Bhd up 2.33% to RM3.52 and Inari Amertron Bhd rising 3.98% to RM2.61.
Glove makers followed suit, with Hartalega Holdings Bhd closing 3.23% higher at RM1.28, Kossan Rubber Industries Bhd rising 4.03% to RM1.29 and Top Glove Corp Bhd up 1.48% at 68 sen.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the rally was driven by optimism over new market access and the reduction of trade tariffs between both nations.
“The agreement opens wider opportunities for local players, especially in crude palm oil and downstream products.
“With zero tariffs in place, Malaysian palm oil products will become more competitive globally, which could boost revenues and profitability,” he said as quoted by Utusan Malaysia.
Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz earlier said the tariff exemptions granted by the US cover more than 1,700 key Malaysian export products and are expected to take effect within 60 days after the official exchange of letters.
The reciprocal Malaysia-US agreement was sealed during the 47th ASEAN Summit, granting tariff exemptions on strategic exports including palm oil, rubber-based goods, cocoa products, aircraft components and pharmaceuticals.
UniKL Business School associate professor Dr Aimi Zulhazmi Abdul Rashid said maintaining the US tariff rate at 19% positions Malaysia competitively among regional peers.
“This makes Malaysian products from palm oil and rubber to pharmaceuticals and aerospace components cheaper compared to those from other countries competing in the same market.
“It could also attract larger foreign direct investments into these industries, given Malaysia’s improved advantage in the US market,” he said.
He added that lower tariffs will provide a positive spillover for the manufacturing and agricultural sectors.
“This will accelerate growth among local manufacturers, including micro, small and medium enterprises (MSMEs).
“The government has also made it clear that only high-value foreign and domestic direct investments will be prioritised in developing key sectors under the New Industrial Master Plan 2030 (NIMP 2030),” Aimi said.