Local suppliers can boost export competitiveness in US trade via other FTAs — MITI

10 Dec 2024

Local suppliers can reduce risks and enhance their export competitiveness by leveraging business opportunities with Malaysia’s Free Trade Agreement (FTA) partners in trade deals with the US, according to the Ministry of Investment, Trade, and Industry (Miti).

The ministry said that in line with the National Semiconductor Strategy (NSS), Malaysian companies are encouraged to “move up the industry value chain” by increasing their research and development (R&D) activities.

“Collaborating with major industry players, particularly from the US, can enhance local industry’s capabilities in microchip innovation and the development of new technologies in high-demand sectors such as artificial intelligence (AI) and 5G,” Miti said in a written response on Parliament’s website on Monday.

The ministry said this in reply to a question from Senator Dr A Lingeshwaran regarding the potential impact on Malaysia following Donald Trump’s successful re-election as the US president.

According to Miti, Trump has announced plans to impose new tariffs of up to 25% on imports from Mexico and Canada, along with an additional 10% tariff on all goods imported from China starting next year.

The ministry added that Malaysia, like other nations, is likely to experience shifts in trade patterns as global supply chains realign.

At the same time, it is confident that Malaysia’s position as a neutral and non-aligned country could further strengthen the nation’s bilateral relations with the US.

“This approach would encourage US companies to continue investing in Malaysia as part of their risk-mitigation strategies amidst ongoing geopolitical tensions.

“Indirectly, this ensures a positive outlook for Malaysia, underpinned by its strong fundamentals and the adoption of globally favourable trends,” it added.

Source: Bernama