KUALA LUMPUR, Malaysia Malaysia will be impacted by the trade war between the United States and China in the long run, said the Asia-Pacific Economic Cooperation Business Advisory Council (ABAC).
ABAC Micro, Small and Medium Enterprises Working Group Chairman Datuk Rohana Mahmood said Malaysia, a nation where trading made up 78 per cent of Gross Domestic Product, would feel the impact if the trade war were prolonged.
“We can’t feel it (the trade war impact) immediately, but studies show that countries like Malaysia, South Korea and Singapore will be impacted if the trade war continued and went on for some time,” she told reporters after ABAC’s third meeting for this year here yesterday.
She said Malaysia, as part of the global key value supply chain, could play a role in finding solutions to mitigate the impact of the trade war.
“We have to find a solution to this (trade war impact). Sometimes, a small nation has a role to play,” she noted.
A trade war between two of the largest world economies would not benefit anybody, Rohana said.
“Imposing tariffs goes against our belief of a free, fair and open trade. The whole idea of APEC (Asia-Pacific Economic Cooperation) is we don’t want any barriers and we hope to have a fair system,” she added.
Issues regarding trade wars were also raised by ABAC members during the three-day meeting that ended today, and inputs from the meeting will be presented during the APEC meeting in Papua New Guinea in November where leaders of the 21 member states of APEC will be present.
“We want to send out a message that this (trade war) will not benefit anyone in ASEAN and the Asia-Pacific region,” she explained.
Although APEC was a non-binding cooperation, the member countries needed to work together to find the best solutions for a free, fair and open trading area, she added.
Created by APEC economic leaders in 1995 as the primary voice of business in the forum, ABAC meets four times a year in preparation for the presentation of recommendations at the annual APEC leaders meeting.NNN-BERNAMA
Source: NAM News Network