KUALA LUMPUR, Aug 5, 2019, Bernama. Some companies in China are relocating their operations to Malaysia amid the country’s trade war with the United States (US). IQI Global chief economist Shan Saeed said a slew of Chinese investments were also going to Vietnam, reported the New Straits Times.
“Some economies are actually benefiting from this trade war.
“If you picked up an Economist magazine last November, it stated that some economies benefiting in the information and communications technology (ICT) and automobile sectors are Malaysia, Thailand and Vietnam.”
He said the US-China trade war would continue.
Last Thursday, President Donald Trump threatened to impose an additional 10 per cent tariffs on about US$300 billion (RM1.25 trillion) worth of Chinese imports beginning next month.
The next day, China warned of retaliatory measures that could plunge both countries into a deeper trade war, magnifying the potential damage to their economies.
“The Malaysian government is in control of the total economy and its balance sheet also looks very strong with investors still viewing the country favourably,” he said.
Shan said Malaysia’s economy remained buoyant and is expected to end the year with an economic growth of 4.5 to 5.0 per cent.
“Meanwhile, the ringgit will be stable and follow the movement of oil prices and the Chinese Yuan,” he added.
Shan said, for the second half of 2019, the investment and consumption pattern would stay solid with overall growth still very much intact for Malaysia.