KUALA LUMPUR: The government continues to monitor the global trade situation in the face of aggressive trade policy changes by the United States (US) and assess its implications on the development of the country’s economy, said Deputy Investment, Trade and Industry Minister Liew Chin Tong.
He said the aggressive changes in trade policies by the US would have an impact on global trade, including Malaysia, given that the US is the world’s largest economy.
“However, the government believes it is still too early to conclude on the economic implications, whether direct or indirect, for the country.
“The government will continue to monitor the global trade situation and plan appropriate strategies to address any implications on the country’s economy,“ he said at the winding up session of the debate on the motion of thanks for the royal address at the Dewan Negara today.
Liew said the government also needs to be prepared to deal with the indirect negative implications of the imposition of high tariffs by the US, especially over the long term.
He explained that there is a high possibility that demand for products from countries subject to high tariffs will decrease in the US market due to high prices.
“Therefore, it is expected that these countries will need to explore new markets or distribute more of their products in other existing markets.
“This matter may affect Malaysia’s export market and provide competition to domestic manufacturers,“ he added.
In this regard, he said the ministry through the Malaysia External Trade Development Corporation (MATRADE) is always striving to strengthen the export of local products by increasing export promotion efforts to emerging markets with high potential.
“Strategic planning for promotion and marketing to trading partners from developing countries such as the African continent, the Middle East, South Asia and Latin America has shown encouraging progress every year,“ he said.
