KUALA LUMPUR: Implementing initiatives under the New Industrial Master Plan 2030 (NIMP) and applying to join BRICS are among the government’s strategies to overcome the effects of prolonged geopolitical conflicts.
Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Aziz said the government is also prioritising supply sources from the ASEAN region through the “nearshoring” approach to ensure the stability of the supply chain while reducing dependence on raw materials from abroad.
He said these initiatives included strategies to ensure the continuity of the local industry supply chain in the face of future economic or global health crises.
“The implementation of these strategies has yielded results in strengthening existing trade relations and attracting foreign investors, as well as increasing Malaysia’s attractiveness as a reputable international trade centre for the long term.
“This is proven when the Pioneer Index of Economic Indicators released by the Department of Statistics Malaysia in July 2024 showed the country’s economic performance recorded 5.2 per cent, reaching 115.1 points compared to 109.4 points in the same month of 2023.
“This illustrates the resilience of Malaysia’s economy at a time when the world is facing current geopolitical challenges, such as the wars in Ukraine and the Middle East,“ the minister said during a question-and-answer session on the first day of the Dewan Rakyat’s current session today.
Tengku Zafrul added that although the current geopolitical tensions do not have a significant impact on Malaysia in the short term, the government should not underestimate the long-term risks if the conflicts continue. He said MITI will continue to play a strategic role in strengthening the country’s resilience and competitiveness, especially in priority sectors such as semiconductors.
At the same time, MITI will also strengthen trade diplomacy with trading partners and explore new strategic economic opportunities to improve the country’s ability to face current geopolitical challenges.
Tengku Zafrul also pointed out that Russia and Ukraine are not the country’s main trading partners with Malaysia’s bilateral trade with the two countries last year making up only 0.5 per cent of the country’s total international trade. The value of trade with individual Middle Eastern countries is also low.
