KUALA LUMPUR: Malaysia should reform or recalibrate its response to changes in the global architecture, especially in trade, as they occur, says Malaysian Investment Development Authority (Mida) chairman Tengku Datuk Seri Zafrul Abdul Aziz.
He said the country should also remain mindful of its strategic positioning as a middle power, leveraging its strengths while addressing concerns about energy security, technology, and overall resilience to remain part of both the United States and China’s supply chain ecosystems.
“For Mida and Malaysia, we know our strengths, but at the same time, we must be ready for challenges ahead,” he said during a panel session at the CNBC Converge Live programme titled Redrawing The Global Trade Map, hosted by its Morning Call anchor, Morgan Brennan, yesterday.
He said Malaysia needs to continue engaging with the United States and China as the two economies account for nearly 30% of the country’s total trade.
Tengku Zafrul further noted that while China remains Malaysia’s and Asean’s largest trading partner, the United States is Malaysia’s largest investor and export market and possibly for the broader region as well.
“We have been consistent and will engage with both countries, as we are talking about supply chain security and technology security, and they want to have trusted supply chain partners.
“So Malaysia and Asean can play that role (as trusted supply chain partners), given our position when we talk about strategic neutrality,” he said.
As an open economy, Tengku Zafrul noted that Malaysia’s strengths in the semiconductor industry, digital economy and energy sector, supported by consistent policies, enabled the country to remain neutral and relevant within global supply chains.
“Things are dynamic. People are watching closely to see how we (Malaysia) navigate the current situation in West Asia.
“I hope that with consistent policies and strategic key decisions being made to look at the longer term, as this will benefit Malaysia and the region as well,” he said.
On energy security amid the ongoing West Asia crisis, Tengku Zafrul said Malaysia is currently in a relatively strong position as a net energy exporter, which places the country on a firm economic footing.
He added that Malaysia’s capital markets remain optimistic, recording a more than 10% year-on-year increase, supported by positive gross domestic product growth, investment performance, stable unemployment, and policy flexibility on both fiscal and monetary fronts.
“But we can’t take these things for granted. In my view, we are seeing a reallocation of assets by companies and fund managers in capital markets and in foreign investment for the longer term,” he added. — Bernama
