KEPALA BATAS:The Malaysia External Trade Development Corporation (MATRADE) is intensifying efforts to explore new markets as an alternative measure to mitigate the impact of the geopolitical conflict in West Asia on Malaysia’s trade.
Its chairman, Datuk Seri Reezal Merican Naina Merican, said all MATRADE trade commissioners have been instructed to conduct more aggressive market intelligence and submit reports based on new Terms of Reference (ToR).
Such measures are crucial to ensure the country adopts a more strategic trade direction, particularly as global uncertainties continue to intensify, he said.
"We cannot deny that the conflict in West Asia will affect trade, not only Malaysia’s but also globally. If the Strait of Hormuz is closed, it could affect maritime routes and disrupt supply chains.
"For sectors such as electrical and electronics (E&E), not everything is produced in Malaysia. Some components are semi-finished products manufactured in other countries, so there will be supply chain disruptions,” he told reporters after the Kasih Ramadan and Ceria Aidilfitri contribution presentation ceremony here today.
Reezal Merican said such disruptions could lead to higher operating costs and global oil prices, increased shipping insurance costs and the possibility of order cancellations from importing countries, posing significant challenges to Malaysian exporters.
Despite the difficulties, he said the crisis could also open up opportunities in new markets, especially among expanding emerging markets.
He said several potential areas have been identified, including Central Asian countries such as Kazakhstan, Turkmenistan, Tajikistan and Uzbekistan, which are developing and showing rising market demand.
MATRADE is also looking into opportunities in several African countries and markets that do not rely on major trade routes affected by the conflict, such as the Red Sea route, the Suez Canal or maritime routes in the Arabian Gulf, including key ports such as Jebel Ali Port, he said.
Meanwhile, the trade promotion agency is assessing markets affected by the disruptions to identify new opportunities for local exporters, while also enhancing trade integration among ASEAN countries to strengthen the regional market.
According to Reezal Merican, although China remains Malaysia’s largest trading partner, the ASEAN bloc continues to be the country’s main export destination, particularly markets such as Singapore, Thailand, the Philippines, Indonesia and Vietnam.
He also highlighted the vast and mostly untapped opportunities in other member countries such as Myanmar, Laos, Cambodia and Timor-Leste.
"We want to ensure Malaysian exports can penetrate and expand in these markets to sustain the country’s trade momentum.
"Last year we surpassed RM3 trillion in total trade, with exports of around RM1.6 trillion, and we want to maintain that momentum despite the challenges,” he said.
Reezal Merican said MATRADE’s measures are aimed at creating a ‘buffer zone’ to reduce the impact of global uncertainties on local exporters.
He added that the strategies will be adjusted according to current developments, as geopolitical conflicts could persist and continue to put pressure on costs and global supply chains.
"In situations like this, short-term and long-term strategies may differ. However, MATRADE is ready to help Malaysian exporters adapt to changes in the global trade landscape,” he said.
-- BERNAMA
TAGS: Datuk Seri Reezal Merican Naina Merican, conflict, West Asia, trade
