Once a global hub for solar panel exports, Malaysia now finds itself grappling with stalled factories and full warehouses. After welcoming over $15 billion in Chinese solar investment over the last decade, the country became a major supplier to the United States and Europe. But with successive US administrations targeting transshipped Chinese goods — including a new 40% tariff introduced by Donald Trump — Malaysia’s export-led model has unraveled. Longi, one of the few remaining manufacturers in the country, has shut down several production lines despite earlier expansion. Today, only two manufacturers remain, with one largely inactive. As it navigates the fallout of global trade tensions, Malaysia is pivoting from its role as an assembly base to building a domestic solar market and technological base. Officials are urging local deployment of unsellable stock as the country rethinks its long-term energy strategy.
Malaysia’s solar sector disrupted by US tariffs on exports
US tariffs on Chinese-linked exports disrupted Malaysia’s solar sector, causing factory shutdowns, stalling Longi’s operations, and shifting focus to local deployment.
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