Kuala Lumpur: The government will intensify efforts to ensure that Malaysia continues to be recognised as a reliable investment destination and trade partner for foreign investors from around the world, said the Ministry of Investment, Trade and Industry (MITI).

According to BERNAMA News Agency, the ministry stated in a written response on the Senate portal that Malaysia stands to benefit from the global trade shift occurring due to trade tensions between the United States (US) and China. The ministry highlighted that companies from around the world will seek new production locations and sources for products to avoid high tariffs. This was in response to Senator Datuk Lim Pay Hen’s inquiry about the potential and opportunities arising from the 10 per cent tariff imposed by the US on China.

Moreover, MITI noted that the trade policy changes implemented by US President Donald Trump will impact Malaysia given that the US is one of Malaysia’s key trading partners. In the short term, Malaysia may benefit from the additional 10 per cent tariff imposed on China, where Malaysian manufacturers and exporters can seize the opportunity to increase production and double exports to the US as an alternative to Chinese goods.

MITI also emphasised that the government is prepared to address the indirect negative implications of high tariffs, especially in the long term. It was pointed out that Chinese products are likely to struggle to penetrate the US market due to high prices, leading China to explore new markets or increase the volume of products in existing markets. This situation could affect Malaysia’s export market in third countries and create competition for domestic producers, as most products produced by China are highly competitive in terms of price due to lower production costs.