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  • 10 months ago
While the trade terms of Malaysia's trade deal with the U.s. appear in favour of Washington, economist Doris Liew says it could benefit Malaysia in the long run.
Transcript
00:00While the terms of the Malaysia-U.S. trade deal may appear to favor Washington,
00:05economists say it's not all bad news for Malaysia.
00:08In fact, Doris Liu, an economist specializing in Southeast Asian development,
00:13believes the agreement could benefit Malaysia in the long run.
00:17Okay, so I see the pros for Malaysia in this.
00:21Firstly, as I mentioned, the legally binding agreements,
00:23which then shields us from any uncertainty that comes out of the Trump regime.
00:31So these are actually very critical in terms of any policies or investment certainties
00:36both for our domestic industries and for foreign companies that want to invest in Malaysia,
00:42particularly U.S.-based companies,
00:44they provide a bit more certainty of where the relations between those two countries are.
00:49Second, it also signals certain kind of strategic alignment with the U.S.,
00:54depending on cooperation in a few areas like semiconductor intact in agriculture.
01:00In a way, it may incur some supply chain and investment flows between the two countries.
01:05Of course, while this agreement does provide significant preferential market access to the U.S. goods,
01:12so some of the industries listed here are chemicals, machinery, metals, dairy, horticulture.
01:20So this actually creates a lot of commercial space for the U.S. exporters,
01:24and this may create some pressure points for the domestic producers.
01:28But that said, right, this does not necessarily mean that we are at a loss here,
01:33because U.S. products, first, if it's a similar quality with the Malaysian or locally produced products,
01:41then they may still struggle with pricing mechanisms.
01:44So it really depends on the market mechanism, how competitive they can be,
01:48even with this preferential asset.
01:52And second, with Malaysia already still importing a large set of food from other countries,
01:59this actually gives us broader supply choice,
02:01so this is not a structural damage.
02:04Third, I think that in terms of imports from the U.S.,
02:09we can look into more high technologies kind of imports.
02:13Some of the things listed were like data centers, innovation-related imports
02:18that Malaysia can adopt, can import from the U.S.
02:22to upgrade our existing supply chain.
02:25So other things, they don't know about us,
02:27because it's not fundamental 68,
02:28but there are no rules in the world,
02:30which in terms of Albina is very old.
02:30Some of the things that we're going to use not in America has is purely top billed,
02:31but it's only in the right direction they've been to the government,
02:32where we are going to use persuade them from other countries,
02:33but it's also under–
02:34why there are these kinds of crupolitics where we have the brush
02:35or plumbing costs only for them,
02:35or maybe they are changing zeichcards under the form.
02:37So then we're going to put another part of the safety of the band.
02:38The companies that are particularly good for them are so Septu use for feeding them.
02:38Inhmies,
02:39I think through this stuff that a lot of this issue,
02:40means that the bacteria really is lubes are super important,
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