PETALING JAYA – Navigating the Trump Effect
As Donald J. Trump gears up for a potential return to the White House, Malaysia faces a mixed bag of benefits and challenges, say experts. According to economist Prof Emeritus Dr Barjoyai Bardai, Malaysia’s economy could be influenced by Trump’s trade policies, particularly due to growing global momentum for “de-dollarisation” amidst US-China rivalry.
China Relations and Trade Tensions
Dr. Barjoyai suggests that if Trump fails to address tensions with China, Malaysia could find itself impacted by these heightened trade conflicts.
Implications of Global Conflicts on Malaysia
Trump’s approach to global conflicts could also affect Malaysia’s economy. “Stabilizing conflicts like those in Palestine and Ukraine could foster global economic recovery,” Dr. Barjoyai noted, referencing Trump’s prior military withdrawals.
Potential Trade Benefits from US-China Tensions
MIDF Research highlights that Malaysia may benefit from a renewed US-China trade war, as redirected trade could boost Malaysian exports. The “China+1” strategy may also attract multinational investments to Malaysia.
Strengthening US Relations in the Face of De-dollarisation
Political analyst Dr Tunku Mohar emphasized Malaysia’s need to maintain strong ties with the US to balance China’s influence. Malaysia’s recent involvement with BRICS might make it a target for de-dollarisation policies under Trump’s potential administration.
