Mustapa: We’ll know full impact of Brexit on Malaysia soon

KUALA LUMPUR: The full impact of Britain’s investment and trade with Malaysia after Britain’s exit from EU will only be known in the future.

According to International Trade and Industry Minister Datuk Seri Mustapa Mohamed, saying that Ma­­laysia would not be affected by the vote was akin to being in “a state of denial”.

“We need to be realistic. However, we have a diverse and strong economy which will help us weather the challenges ahead.

“In the meantime, it’s business as usual for Malaysia,” he said after releasing the ministry’s report for 2015 at its office here yesterday.

While Britain is not a major tra­ding partner with Malaysia, Mustapa said Brexit would have a bearing on trade with countries such as Holland, France and Germany.

“So far, we have yet to see the impact of Brexit in this part of the world. This is partly due to distance and because Britain is not among the top five or 10 countries in terms of trade investment with Malaysia,” he said, adding that his ministry would closely monitor developments.

Asked about Brexit’s impact on the weakening ringgit, Mustapa said: “It’s not just Brexit as there are other factors.”

Among these, he said, were the fluctuating prices of oil.

The present volatility in the markets was not unusual due to the temporary shock from Britain’s unexpected exit, he noted.

“There are views that this is temporary and there will be a more realistic level in the next few days,” he said.

Based on the ministry’s 2015 report, Britain was ranked third in trade between Malaysia and EU countries with RM9.31bil in exports and RM7.13bil in imports last year.

In comparison, China was Ma­­laysia’s top trading partner with exports totalling RM101.53bil and RM115.51bil in imports.

This was followed by Singapore and the United States.