Kuala lumpur: Malaysia's trade strategy is now focusing on diversifying markets to reduce dependence on a particular region, while strengthening the resilience of the country's exports, especially amid global geopolitical uncertainties.
According to BERNAMA News Agency, Malaysia External Trade Development Corporation (MATRADE) chairman Datuk Seri Reezal Merican Naina Merican said the approach is implemented through the 'Diversification Programme' strategy, which focuses on expanding export destinations to non-conflict areas such as Central Asia and Africa. He noted that Malaysia's exports to West Asia currently account for only about 2.7 percent, indicating significant room for expansion through market diversification.
Reezal Merican explained that the strategy involves a two-pronged approach: market diversification and the strengthening of Free Trade Agreement (FTA) cooperation. This announcement was made after the MADANI Sales Programme for Cooperatives and Entrepreneurs (JMKU) in Permatang Sintok, officiated by Entrepreneur and Cooperatives Development Minister Steven Sim.
As part of the first pillar, the focus is on expanding export destinations to regions identified as low-conflict-risk, such as Central Asia, Southeast Asia, and Africa. The second pillar aims at utilising FTA cooperation to provide broader market access by reducing or eliminating tariff barriers, which have been eased by FTA partners, thereby offering new opportunities to increase exports.
Additionally, the strategy includes a 'regain and retain' approach to identify markets that can be recovered or maintained, including countries with relatively small trade deficits. Reezal Merican highlighted the need to address global supply chain disruptions, pointing out that while sectors such as electronics may be less affected, food-related and halal industries are more vulnerable due to their dependence on key consumer markets in certain regions.
He emphasized the importance of a whole-of-government approach to ensure effective implementation, involving coordination between ministries and agencies, including the Ministry of Entrepreneur and Cooperatives Development. MATRADE will continue to engage with stakeholders to ensure stronger coordination and synergy in supporting micro, small, and medium enterprises amid an increasingly challenging global trade environment.