Malaysia

Positive spillover? M’sia banks on US-China reconciliation at Apec summit

Historic agreement on supply chains to be signed by 14 economies, reports Jason Santos from San Francisco

Updated 2 years ago · Published on 14 Nov 2023 7:00AM

Positive spillover? M’sia banks on US-China reconciliation at Apec summit
Investment Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the global economy, including Malaysia, could benefit from a positive US-China relationship. – SYEDA IMRAN/The Vibes file pic, November 14, 2023

by Jason Santos

MALAYSIA is poised to maintain a neutral stance amid the ongoing tensions between the US and China, adopting an optimistic outlook that the two superpowers can mend relations during the Asia-Pacific Economic Cooperation (Apec) leaders’ summit here this week.

Investment Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the global economy, including Malaysia, could benefit from a positive US-China relationship. 

“Both nations are Malaysia’s largest trade and investment partners. Top two. It is our hope that Apec can bring about that positive impact. 

“Any kind of trade tension between the two economies will certainly impact the whole world negatively,” he told reporters here yesterday. 

Both China and the US are the world’s economic heavyweights. Combined, they produce over 40% of the world’s goods and services. 

US President Joseph Biden and his China counterpart Xi Jinping are expected to meet tomorrow.

Although taking place on the sidelines, their meeting during the Apec summit will be closely watched, given the recent deterioration in US-China relations, including by the rest of Apec’s 21 member economies together with a global audience.

“The rest of the world hopes (the two leaders’ meeting) will result in the best outcome. 

“At the end of the day, engagement is key, and the outcome (hopefully) ends on a positive note, with the hope they will engage on key issues like climate, health and economic stability. 

“With that, the rest of the world will experience a positive spillover,” said Zafrul, adding that the global trade linkages are at a “complex” stage.  

Zafrul also hinted at the signing of the “second pillar agreement” during the Indo-Pacific Economic Framework for Prosperity (Ipef) meeting, which focuses on supply chains, on the sidelines of the Apec summit. 

The meeting will be chaired by US President Joe Biden, and Prime Minister Datuk Seri Anwar Ibrahim is also expected to be present. 

Ipef is an economic framework launched by Biden earlier this year. It will be attended by, among others, Australia, Brunei, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, and Vietnam. 

Together, the countries represent 40% of global GDP.

The Ipef Economic Framework was agreed upon by the respective countries’ ministers on September 8 and 9 last year in Los Angeles. 

Negotiations are expected to result in four separate agreements under the pillars of Trade, Supply Chain, Clean Economy and Fair Economy. 

The highlight of the summit, the Apec Economic Leaders’ Meeting (AELM), is scheduled to be held in San Francisco from today until Friday.

Anwar, who heads the Malaysian delegation, will be accompanied by his wife Datuk Seri Dr Wan Azizah Wan Ismail, Zafrul, Foreign Minister Datuk Seri Zambry Abd Kadir, Communications and Digital Minister Fahmi Fadzil, several Malaysian MPs and senior government officials. 

Anwar will also be heading to the University of California in Berkeley to deliver a public lecture titled “Superpower Rivalry and Rising Tensions in the Asia-Pacific – the View from Southeast Asia”.

Other than that, he will be attending a dinner organised by the National Centre for Apec, where over 10 American CEOs will be present. 

The prime minister will also hold bilateral meetings with leaders from Canada, Peru and Vietnam, among others. 

He is scheduled to later meet several potential investors, including Google, Microsoft and TikTok.

Apec is home to close to three billion people, 62% of global gross domestic product, and 48% of global trade in 2021. – The Vibes, November 14, 2023

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