THE government is intensifying efforts to ensure that Malaysia remains a recognised investment destination and a trusted trading partner for foreign investors worldwide, according to the Ministry of Investment, Trade and Industry (MITI).
In a written response posted on the Dewan Negara portal, the ministry highlighted that Malaysia stands to benefit from the global trade shift caused by the ongoing trade tensions between the United States (US) and China.
"Companies from around the world will seek new production locations and product sources to avoid high tariffs," said the ministry.
This statement was made in response to a question posed by Senator Datuk Lim Pay Hen, who asked how the US's policy of imposing a 10% tariff on Chinese imports could potentially attract multinational companies to relocate their operations to Malaysia.
The senator also sought insights on the opportunities this shift could present for Malaysia, particularly in terms of Foreign Direct Investment (FDI) and export potential.
MITI noted that the changes in trade policies would impact Malaysia, given that the US is one of the country's major trading partners.
"In the short term, Malaysia could benefit from the additional 10% tariff imposed on China, with Malaysian manufacturers and exporters seizing the opportunity to increase production and boost exports to the US as an alternative to Chinese goods," said MITI.
The ministry also stressed the need for the government to prepare for potential negative indirect implications of the high tariffs, particularly in the long run.
"It is likely that Chinese products may not be able to penetrate the US market due to higher prices.
“As a result, China will explore new markets or flood existing markets with more Chinese products.
“This could affect Malaysia's export markets in third-party countries and introduce competition for local producers, as many Chinese products are highly competitive in terms of price due to lower production costs," the ministry added. – March 11, 2025
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