Malaysia Solar Panel Export Market Overview

Malaysia has been one of Southeast Asia's largest photovoltaic manufacturing bases for years, serving as a production hub for both Chinese-owned and international solar companies. Malaysia's exports of PV products totalled RM41.6 billion, representing a 22% increase from the previous year, according to Malaysia External Trade Development Corporation figures. Separately, Malaysia's solar panel exports specifically were reported at RM11.2 billion in 2024.

However, the trade picture has shifted sharply. The United States has historically been Malaysia's single largest PV market, absorbing 22.9% of Malaysia's PV product exports. Consequently, the new US duties represent a direct challenge to a substantial share of the sector's export base, and Malaysian producers have been actively repositioning toward alternative markets.

Where Malaysia's PV Exports Go — Destination Breakdown

Malaysia's PV export base has historically been concentrated in a handful of markets. The United States leads, followed by Singapore and Hong Kong at equal shares, then China, Germany, and Vietnam. As the chart below shows, this concentration is precisely what makes the US tariff decision so consequential for the sector.

The US Tariff Decision — What Actually Happened

On April 21, 2025, the US Department of Commerce issued final affirmative determinations in its anti-dumping and countervailing duty investigations covering crystalline photovoltaic cells from Cambodia, Malaysia, Thailand, and Vietnam. The case had been filed roughly a year earlier by the American Alliance for Solar Manufacturing Trade Committee, a group including Hanwha Qcells, Mission Solar, Meyer Burger, and First Solar.

Importantly, Malaysia received the lowest maximum rates of the four countries named. The chart below compares the maximum AD and CVD rates applied to each.

1. Rates Vary Significantly by Company

The headline maximum figures do not apply uniformly. In Malaysia's anti-dumping investigation, four of six mandatory respondents received the 81.24% rate based on adverse facts available. However, one respondent received a rate of 0.00%, and another received 8.59%. Notably, the "all others" rate — which applies to exporters not individually investigated — was set at just 8.59%. On the countervailing side, Korean-owned Hanwha Qcells' Malaysian operation received the lowest CVD rate at 14.64%, alongside a 0% AD margin.

2. The Duties Stack on Top of Other Tariffs

Critically, AD/CVD duties are not the only trade measure in play. They stack on top of existing Section 201 solar tariffs, and on top of so-called "reciprocal" tariffs. For Malaysia specifically, the reciprocal tariff took effect in April 2025 at a 10% rate, with a scheduled increase to 24%. Therefore, the effective total tariff burden for some Malaysian shipments can be considerably higher than any single headline rate suggests.

3. The Decline Started Before the Tariffs

It's worth noting that Malaysia's US solar exports were already softening before the AD/CVD determination. According to Malaysia's trade ministry, the decline began when the US ended its solar product tax exemption for Southeast Asian countries in June 2024. As a result, the 2025 tariff decision accelerated a trend that was already underway rather than creating it from nothing.

Market Diversification — Where Malaysian Solar Is Heading Next

Faced with a narrowing US market, Malaysian exporters and trade authorities have moved decisively toward diversification. The clearest success so far has been India.

India: The Standout Growth Market

Malaysia's PV cell exports to India reached RM4.65 billion in 2024, up 88% from RM2.47 billion in 2023. In other words, India nearly doubled its intake in a single year, partially offsetting softening US demand. India's own aggressive solar deployment targets make it a structurally attractive long-term destination.

Middle East: UAE and Saudi Arabia Identified as Priority Markets

In addition to India, Malaysia's trade ministry has explicitly identified the United Arab Emirates and Saudi Arabia as potential growth markets for PV exports. Furthermore, local solar companies have been promoted through the Malaysia International Halal Showcase's Greentech category as part of this diversification push.

Regional Competition Is Intensifying

Meanwhile, the competitive landscape is reshuffling quickly. Indonesia and Laos have emerged as significant new suppliers to the US market, with Indonesia's share of US solar module imports rising sharply in 2025 while Vietnam, Thailand, and Malaysia all saw their shares decline. Consequently, Malaysian exporters face pressure not only from tariffs but from newly emerging low-cost origins.

Challenges Facing Malaysia's Solar Export Sector

The sector faces several compounding pressures. First, margin compression is severe: industry analysis suggests that for integrated module companies, Section 201 tariffs combined with AD/CVD rates above roughly 30% push margins into negative territory. Second, average global module prices have continued falling, which limits the ability to offset tariffs through pricing. Third, the emergence of Indonesia and Laos as alternative supply origins means some production may simply relocate rather than Malaysia retaining the business. Nonetheless, Malaysia's relatively favourable tariff position compared to Cambodia, Vietnam, and Thailand — combined with genuine diversification wins in India — leaves it better placed than several regional peers.

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