Kuala Lumpur: The United States’ imposition of tariffs on imports from Mexico, Canada, and China presents a potential opportunity for Malaysian exporters to ramp up production and potentially double their exports to the US.

According to BERNAMA News Agency, the Ministry of Investment, Trade, and Industry (MITI) addressed the Dewan Negara, highlighting that although the tariffs may not have a direct effect on Malaysia’s current export numbers, the resulting price increases in products from the tariff-affected countries could make Malaysian goods a more attractive alternative in the US market.

MITI further explained that investor countries might seek out new investment destinations and competitive sources of products to bypass the high tariff payments. This was in response to an inquiry by Senator Robert Lau Hui Yew, who sought clarity on the impact of US protective trade policies and the measures Malaysia plans to implement to mitigate these impacts.

While MITI acknowledged the potential challenges posed by the US trade protection measures, it expressed confidence that it is premature to assert that these policies will have a detrimental impact on Malaysia’s economy, particularly concerning export performance, investment loss, or the relocation of multinational corporations.

The ministry noted that relocating a company’s operations is a complex decision that involves multiple considerations, including long-term investment capabilities. MITI emphasized that Malaysia possesses inherent strengths to draw foreign investment and foster new projects, diversification, and expansion.

MITI, through the Malaysian Investment Development Authority (MIDA), is adopting a country-specific strategy to pinpoint investment opportunities, taking into account the current geopolitical landscape and the policy directions of partner countries, including the unpredictable US policies.