Strengthening US Ties, Hybrid Trade Vital For Malaysia’s Economy

KUALA LUMPUR, April 14 (Bernama) -- Malaysia should strengthen its diplomatic ties with key partners such as the United States (US), particularly in business, investment, and security, to ensure sustainable economic growth and maintain fair and balanced trade.

At the same time, the country should also advocate for a hybrid approach that combines free and fair trade, said Economic Club of Kuala Lumpur (ECKL) research director Anthony Dass.

He said Malaysia should also adopt rational, fact-based policies that benefit not only the country but also its businesses and people, as the US tariff pause continues over the next 90 days.

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“We need to monitor global developments daily. If we don’t, we will just be talking about headline numbers and macroeconomic statistics. Monitoring global developments will help businesses, especially small and medium-sized enterprises, to stay informed.

“Multinational corporations and global investment banks might be ahead, but the real economy --particularly local businesses -- remains in the dark. That’s why keeping the public informed is crucial, as public discourse is especially important at this stage,” he said during a presentation on Malaysia’s Policy Response to Global Challenges in 2025 at Bursa Malaysia today.

He also stressed that Malaysia should strengthen its trade diplomacy by pursuing more bilateral agreements, increasing involvement in initiatives like the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and advocating for digital trade agreements.

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Dass also urged Malaysia to take the lead in driving digital trade, green initiatives, and environmental, social, and governance (ESG) practices, as these areas become increasingly important for businesses across all sectors.

While global trade faces challenges and uncertainties from geopolitical risks and climate change, he sees potential in emerging markets like BRICS.

“I believe BRICS is a good place for business opportunities. We are a trading economy, and the real economy plays a vital role alongside the financial market.

“Malaysia should focus on becoming a supply chain hub, taking inspiration from countries like Vietnam and Indonesia,” he said, adding that this could involve fast-tracking special economic zones, developing industrial infrastructure, and streamlining and digitising investment processes.

-- BERNAMA