As the saying goes, don't reject sustenance, don't seek enemies. But who would have thought, with Donald Trump's return to the White House, Malaysia might get a 'durian' sustenance without having to run to the orchard!
According to an analysis by the KSI Strategic Institute and the Kuala Lumpur Economic Club (ECKL), Trump's plan to impose a 10% tariff on Chinese goods starting February 2025 could open up a huge opportunity for Malaysia!
As a major player in the global semiconductor industry, Malaysia is on the radar as a 'new home' for companies looking to get out of China's shadow with the most strategic position.
This opportunity is estimated to be able to boost foreign direct investment (FDI) by up to RM19.7 billion in four years, contributing to a 1% increase in the country's GDP.
However, despite this great potential, there are challenges waiting. Trump's pro-fossil policies may cause a fall in global energy prices, thus negatively affecting Malaysia's mineral fuel export revenue.
However, new opportunities may open up for local petroleum companies, especially if renewable energy incentives in the US are reduced, potentially increasing demand for traditional energy.
With careful planning, Malaysia will not only be able to meet the challenges of Trump’s policies, but also stand to gain significantly from his new era of ‘economic play’.
