Govt closely monitors global trade changes and economic impact

THE Malaysian government is closely monitoring the evolving global trade environment, especially in light of aggressive trade policy changes by the United States, and is assessing how these shifts could impact the nation's economic development.

Deputy Minister of Investment, Trade and Industry, Liew Chin Tong acknowledged that the changes in trade policies by the United States, as the world's largest economy, will undoubtedly affect global trade, including Malaysia.

However, he said, it’s remains too early to definitively assess the direct or indirect economic implications for the country.

"While the aggressive changes in the US trade policies are likely to have global repercussions, it is still premature to draw conclusions about their direct or indirect effects on Malaysia," Liew said during the ministry’s winding up speech in relation to the motion of thanks for the royal address in the Dewan Negara today.

The Deputy Minister noted that, although the government is not yet able to fully gauge the economic impact, it is committed to closely monitoring the situation and preparing appropriate strategies to address any challenges that may arise.

"In response to the imposition of high tariffs, particularly by the US, the government understands that countries affected by these policies may see a decrease in demand for their products in the US market, as higher tariffs would lead to higher prices," he explained.

"This could push affected countries to seek out new markets or increase their share in other existing markets, potentially affecting Malaysia's export market and intensifying competition for domestic manufacturers."

Liew added the government, through the Malaysia External Trade Development Corporation (MATRADE), has been taking proactive steps to strengthen the country’s export performance by enhancing efforts to promote Malaysian products in emerging markets with high growth potential.

"The ministry, along with MATRADE, has been actively pursuing strategic promotional activities and marketing campaigns aimed at trading partners from developing regions such as Africa, the Middle East, South Asia, and Latin America.

“These efforts have shown positive results and significant progress each year," Liew said.

The deputy minister stated that the government remains vigilant and flexible in its approach to navigating the challenges presented by the shifting global trade landscape.

Through continued export promotion and strategic planning, Malaysia aims to mitigate the potential impacts on its economy while seizing new opportunities in emerging global markets. -  March 12, 2025