The Finance Minister of Malaysia, Lim Guan Eng, said that the country has no intention to take sides but it wants to get a position which can be a safe place for the investors amidst the ongoing China-US trade war. The main motive for Malaysia to not support any of the sides is to shield the country from the bad impacts of the trade war that is still going on between the US and China.
Lim Guan Eng is also of the thought that instead of taking sides for the trade war, it is important for them to offer themselves as a safe haven for the investors so that the country of Malaysia can give it a try to shield or protect them from the negative impact of the ongoing trade war that can have a bad effect on them. He is also of the thought that China and the US is sitting at number one and two positions respectively in respect of trading partners. In fact, China is considered to be the most important trading partners of Malaysia and the United States comes after that. So there is no question of taking sides of any one when they have to deal with both of them. Finance Minister of Malaysia also think that they cannot influence any external event or rather the outside events will ultimately influence the country to become a global trading nation.
In this context, Lim also said that almost 130% of the Gross Domestic Product of Malaysia is attributed to trade and this is the sole reason that the current government must continue to seek improvement at the ease of doing business within the boundaries of the country, Malaysia. It is also important for them to attract and get new investments while they try to craft policies that are continuous, consistent, and clear for them as well to the investors.
Because of the China-US trade war, the prices of the products can rise in the middle of the shifts in the production to more expensive locations. It will definitely result in collateral damage to most of the economies as well.