As the US-China tech conflict escalates, Malaysia's position as a neutral player is increasingly under scrutiny. According to Professor Dr. Chris Miller from The Fletcher School at Tufts University, Malaysia's neutrality faces rising challenges due to aggressive trade measures from both superpowers. While the country has benefited from a semiconductor investment boom partly due to its neutral stance, the pressures from the US and China complicate this dynamic. [944b1f55]
The US has been regulating American chip-making tools, impacting the semiconductor supply chain, while China has begun restricting exports of critical minerals essential for chip production. These actions underscore the intrusive nature of both countries' trade policies, reshaping global supply chains and forcing countries like Malaysia to navigate a complex landscape. [944b1f55]
Miller emphasizes that maintaining neutrality will be increasingly difficult as both the US and China exert political influence over global supply chains. In light of this, economists suggest that Malaysia must strengthen its trade relationships and leverage its ASEAN chairmanship to promote regional economic integration. [e84b54b6]
Prof. Dr. Yeah Kim Leng warns that US tariffs could adversely affect Malaysia's trade, highlighting the need for the country to continue fiscal and structural reforms to enhance its competitiveness. Doris Liew from IDEAS Malaysia stresses the importance of strategic trade negotiations with the US to mitigate potential risks. [e84b54b6]
Kenanga Research predicts that ASEAN markets may experience volatility similar to the 2018 trade war, but Malaysia is seen as relatively insulated compared to other ASEAN nations. As Malaysia continues to position itself within the global semiconductor landscape, the implications of US and Chinese trade policies will be crucial in determining the future of its neutrality and economic stability. The international community is closely watching how Malaysia will manage its relationships with both superpowers while fostering its semiconductor industry. [944b1f55][da6b41ec][62a300a3]