PETALING JAYA: Malaysia stands to benefit if there is a prolonged stand-off over the trade war between China and the US.
According to InvestPenang director Datuk Seri Lee Kah Choon, any investments meant for China could then come to Malaysia. InvestPenang is the authority entrusted with bringing in foreign and private investments to the state.
Lee, who is special adviser to Penang Chief Minister Chow Kon Yeow on investments, pointed out that the present economic uncertainties affected all trading nations, including China.
In a WhatsApp exchange with theSun, Lee said the uncertainties were heightened by a possible fallout from the China-US trade war. This had sent orders for various merchandise and electronics components plummeting.
But he also cautioned that any benefit from increased investments to Malaysia could also be negated by lowered demands for our goods and services.
Lee was responding to a report in theSun that 1,000 jobs in Penang and Kulim are at risk of becoming redundant due to three manufacturing plants downsizing production.
It was likely that these companies had taken such action to cope with the global economic uncertainties.
He urged affected employees to liaise with InvestPenang, which could match them with other multinational corporations that needed local talent.
Lee said the World Bank had downgraded its global economic outlook this year as a result of the rising trade tension, weaknesses in manufacturing and a growing financial stress in emerging markets.
“The global economic is now expected to grow 2.9% this year, down from a 3% forecast given earlier,” he said.
Penang Deputy Chief Minister Dr P. Ramasamy said the state government would monitor the issue closer now in view of such developments.
