Malaysia should use the geopolitical tensions with China to its advantage in order to increase manufacturing investment.
According to Malaysia’s Minister of the Economy, Rafizi Ramli, Malaysia might profit from the current circumstances in the same way that Vietnam has.
“Many investors and industry players who have set up their manufacturing facilities in China are taking steps to reduce the risk of exposure to the geopolitical situation.”If we gave this issue significant attention, it would pave the way for a shift of these manufacturing industries from China to other nations.
“That is why we hope with the right policies, we could attract more manufacturing industry players to move from China to Malaysia,” he stated to Dewan Rakyat today.
He was responding to a follow-up question from Datuk Seri Dr Noraini Ahmad (BN-Parit Sulong) about the steps the government has taken to deal with the global economic unpredictability, particularly the risk posed by the economic slowdown in China.
Rafizi was also questioned by Mohd Syahir Che Sulaiman (PN – Bachok) about the steps the government is taking to deal with the Purchasing Managers’ Index-based slowdown in exports.
Rafizi said that Malaysia, a trading country that relied on exports, could not escape the global economic recession.
However, he insisted that local businesses must make an effort to expand in order to be competitive and adhere to international standards.
He claimed, for instance, that the European Union will enforce compliance with the Carbon Border Adjustment Mechanism (CBAM), reducing the possibility of carbon leakage in imports and exports.
“While we experience the slowdown, it is crucial to take advantage of the chance to make sure our products meet the standards set by the trading partners.
“This is to ensure constant competitiveness when trading with the international parties,” he stated.
