As the global trade landscape shifts under the weight of escalating US tariffs, Malaysia and China need to strengthen their economic partnership to weather the storm.
Associated Chinese Chambers of Commerce and Industry of Malaysia president Datuk Ng Yih Pyng said there are challenges and opportunities ahead for the two nations deeply intertwined by integrated supply chains.
“No nation can be insulated if the tariff war escalates into wider trade retaliation,” he said, acknowledging the inevitable impact of global trade disruptions.
Despite these challenges, Ng sees a silver lining in the potential for enhanced cooperation.
He urged both countries to deepen their strategic partnership, leveraging free trade agreements like the Regional Comprehensive Economic Partnership, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the China-Asean Free Trade Area to bolster bilateral and multilateral trade.
“Streamlining logistics and easing non-tariff barriers are essential for facilitating trade between our countries,” he said.
Small-medium enterprises, he said, should also explore supply chain partnerships and joint ventures in third markets.
Ng said he is advocating joint ventures in high-tech sectors such as artificial intelligence, renewable energy and healthcare.
However, he also cautioned against using Malaysia as a base for “rebadging” products to circumvent US tariffs – a move that could invite punitive measures.
“By leveraging China’s strengths in technology and innovation, Malaysia can adopt relevant models to bolster its own sectors,” he added.
Malaysia China Business Council director Datuk Beh Hang Kong said Malaysia should bolster its ties with Asean countries and collaborate closely with China in response to the new US tariffs.
“The Asean bloc and China together represent a market of over two billion people.
“By working together, we can strengthen our position against other economic blocs,” he said.
This strategy comes as Malaysia continues to face challenges from increased US tariffs, though Beh said Malaysia’s tax rates remain competitive compared to neighbouring countries.
“While the tariffs affect us, the effect is minimal compared to Vietnam, Cambodia, and Thailand,” he said.
Beh, who is also China-Malaysia Qinzhou Industrial Park deputy board chairman, noted that the recent signing of a twin halal park agreement between Malaysia and China marked another milestone for Malaysian halal products on the global stage.
The twin parks, located in Qinzhou, China, and Malaysia, aim to facilitate the export of halal products worldwide, particularly targeting China’s vast market.
The signing took place during Guangxi Governor Lan Tianli’s recent trip to Malaysia from April 9 to 12, days before Chinese President Xi Jinping’s visit.
In the face of global trade uncertainties, Malaysia Chamber of Commerce & Industry in China (Shanghai) chairman Tan Hann Syn said Malaysia and China are poised to deepen their economic collaboration through key strategies and opportunities.
“China’s forced innovation in response to US policies has inadvertently benefited Malaysia and the wider region, showcasing adaptability as a vital asset,” he said.
With Malaysia assuming the Asean chairmanship this year, Tan said this is a crucial opportunity to highlight the region’s strategic importance.
“Asean-China relations must continue to flourish, and Malaysia’s stable political climate makes it an ideal hub for foreign investments,” he said.
Tan emphasised Malaysia’s strategic role as a gateway for Chinese companies seeking to enter the Asean and Middle East markets, capitalising on its cultural and linguistic strengths.
He also reiterated the importance of high-level diplomatic exchanges, citing recent visits between Malaysian and Chinese leaders as catalysts for increased business interest.
“These interactions encourage Chinese enterprises to consider Malaysia a viable expansion destination,” he said.
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