Large SMEs to suffer the most

Not an electrifying moment: The E&E industry is expected to be the main victims of the trade war and SMEs involved in the sector are expected to experience contractions if exports are reduced. — AFP

AS the trade war drags on, larger SMEs may bear the brunt as Malaysia’s exports are expected to take a hit, says a report by MIDF Research.

In its note last week, MIDF says a full blown trade war between the US and China could cause Malaysia’s exports to fall by 10%. This is in line with its observation that Malaysia’s outbound shipments would not contract more than the -15.7% year-on-year seen during the global financial crisis in 2009.