Malaysia is cautiously navigating global trade tensions, particularly as it seeks to maintain competitiveness in its growing electric vehicle (EV) industry, according to Investment, Trade, and Industry Minister Tengku Zafrul Aziz. In an exclusive interview, Zafrul highlighted the potential global impact of rising US-China tensions, especially regarding the tech supply chain, while underscoring Malaysia’s commitment to an open, balanced engagement with both superpowers.
As businesses around the world seek to diversify supply chains due to geopolitical uncertainties, Malaysia has become an attractive destination for investments from tech companies and automakers. Yet, the country faces hurdles. Malaysia’s solar industry risks tariffs because of Washington’s anti-China policies, and the EV sector must strike a balance between fostering domestic growth and managing the influx of Chinese imports.
Chinese EV manufacturers are expected to expand their presence in Southeast Asia, particularly after facing restrictions in the US and Europe. While some countries have imposed tariffs to limit Chinese imports, Malaysia has so far avoided such measures. Zafrul emphasised the importance of fostering competition among local automakers like Perodua and Proton, while maintaining an open economic policy.
