KUALA LUMPUR: Malaysia should use the US-China trade war as an opportunity to attract foreign investments, said Economic Affairs Minister Datuk Seri Azmin Ali.
He cited a recent study on the effects of the trade war on 250 conglomerates where 24.7% expressed their intention to transfer or relocate their operations into South-East Asia, including Malaysia.
“This proves that Malaysia has the potential to face this crisis. In fact, we can change this crisis into an opportunity to attract investments, “he said.
He said this in response to a supplementary question by Fahmi Mohamed Fadzil (PH-Lembah Pantai) on how to make Malaysia an investment destination particularly in taking advantage of the trade spat between the US and China.
Azmin said Malaysia could be the gateway for foreigners to penetrate the Asean market because of a stable political position, a peaceful country and skilled human capital.
Responding to Awang Hashim’s (PAS-Pendang) question about the impact on the Malaysian economy due to the risk of uncertainty in the global environment especially between the US and China, Azmin said that the impact of US action to impose tariffs on China, investors from China shifted their business operations to Southeast Asia.
He said that the ongoing trade way had resulted in increase in palm oil exports to China.
“The trade war has opened opportunities for the country to increase commodities exports to China, particularly palm oil as a substitute for soya and corn oil,“ he said.
He added that Malaysia had signed an agreement to export 1.62 million tons of palm oil worth US$900 million (RM3.7 billion) to China.
“From January to April, palm oil exports to China had increased almost 255,000 tons worth RM1.4 billion,“ he said.
Azmin convinced the Dewan Rakyat that the nation’s economy was on track to grow between the 4.3% and 4.8% target set for 2019.
