Kuala lumpur: Malaysia’s policy of neutrality in global trade has been misinterpreted by some exporters and exploited as a base to evade tariffs and circumvent sanctions, Deputy Investment, Trade and Industry Minister Liew Chin Tong said today. In his keynote address at the Skrine seminar on ‘Staying Ahead of the Curve: Legal Appetite for Sanctions and Tariffs Risks’ here today, Liew said the government is taking steps to strengthen enforcement and tighten oversight over certain imports and exports to prevent such misuse and uphold Malaysia’s credibility in global trade.
According to BERNAMA News Agency, Liew highlighted that tariffs are not solely about increasing the cost of imported goods but also have broader implications, such as disrupting supply chains. He pointed out that goods initially meant for the US market are being redirected to other markets, including Malaysia’s, leading to challenges for local producers due to the influx of imports.
Liew remarked that the current era of hyperglobalisation, which focused on efficiency, has ended and has been replaced by an era emphasizing security and resilience. Consequently, both the government and private sector need to rethink their long-term trade strategies to adapt to the changing global landscape.
He emphasized that trade should serve a broader purpose beyond being an end in itself. The traditional trade model, where Malaysia and other ASEAN members aimed to manufacture cheaply for export to the US, is no longer sustainable. Liew stressed the importance of market diversification, urging Malaysia to expand ties with emerging markets in Central Asia, the Middle East, Africa, and Latin America.
Furthermore, Liew encouraged ASEAN member states to collaborate rather than compete internally, aiming to establish an integrated regional supply chain and a vibrant consumer base. He noted that ASEAN, already the fifth-largest economy globally with a population exceeding 680 million, could attract major powers and emerging economies to engage and invest as a unified bloc.
Liew also underscored the significance of legal preparedness in today’s intricate trading environment. He noted that law plays a dual role in advancing and defending national interests, serving as a crucial element in navigating the evolving global trading system. International legal norms, despite their imperfections, provide a framework for accountability and peaceful dispute resolution.
In conclusion, Liew stated that as Malaysia navigates the shifting global economy, collaboration between the government and private sector is essential to enhance legal knowledge and capacity to tackle complex legal and regulatory challenges.