KUALA LUMPUR, March 10 (Bernama) -- 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).
In a written response posted on the Senate portal, the ministry said Malaysia stands to benefit from the global trade shift occurring due to trade tensions between the United States (US) and China.
"Companies from around the world will seek new production locations and sources for products to avoid high tariffs," it said when responding to Senator Datuk Lim Pay Hen on the potential and opportunities arising from the 10 per cent tariff imposed by the US on China.
Additionally, MITI noted that the trade policy changes implemented by US President Donald Trump will impact Malaysia since 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," the ministry explained.
MITI emphasised that the government is also prepared to address the indirect negative implications of high tariffs, especially in the long term.
"Chinese products are likely to struggle to penetrate the US market due to high prices. Consequently, China will explore new markets or flood existing markets with more Chinese products.
"This situation will 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," it added.
-- BERNAMA
