GEORGE TOWN, April 8 -- The imposition of a 24 per cent tariff on exports to the United States may reduce Malaysia's attractiveness for future foreign direct investments (FDI), according to Penang state government's investment arm, InvestPenang.

They said the tariff sends a negative signal to prospective investors who may now see Malaysia as less competitive export based compared to countries with preferential trade terms.

"This may reduce Malaysia's attractiveness for future FDI, particularly in high-value manufacturing sectors," they said in a statement issued today.

They also said export-oriented companies are exploring supply chain realignments, including shifting production to countries with lower tariff exposure and relocating se...