Impact of trade war on the Malaysian economy

OVER the period of 2018 to 2020, Malaysia’s export risks will decline by 0.08 percentage points as a result of the US-China trade war, while the country’s gross domestic product (GDP) could decline by 0.02 percentage points.

The estimate is based on the assumption that almost 50% of Malaysia’s exports are incorporated into China’s final products, which are then exported to the US.