The potential impact of Donald Trump's proposed tariffs on Malaysia may not be as bad as some people think.
Analysts suggest that Malaysia could actually benefit from the United States' (US) tougher stance towards China.
Collins Chong, a security expert, noted that Malaysia's strong ties and shared interests with the US, particularly in areas such as semiconductors, could help ease any concerns about tariffs.
Malaysia has also become an important trading partner with the US, receiving valuable investments in technology and defence.
Meanwhile, rising tensions between the US and China are prompting companies to move their supply chains to Southeast Asia, with Malaysia a prime destination.
Investment Minister Tengku Zafrul said this trend could boost Malaysia's economy in the short term as companies look for stable manufacturing bases outside of China.
However, he warned that the long-term picture may bring challenges, including slower economic growth and possibly higher prices for consumers.
Malaysia has become a favored destination for technology investment from giants such as Microsoft and Amazon.
But as the US-China rivalry intensifies, remaining neutral in foreign policy may become more difficult for Malaysia.
Balancing trade relations with both powers will be essential to maintaining economic stability and growth.
