Analysts predict that Malaysia will benefit from trade policies regardless of the outcome of the U.S. presidential election.
According to the Institute for International Economic Policy, CIMB Securities commented that whether Donald Trump or Kamala Harris emerged victorious in the election, Malaysia benefits from trade shifts and the “China Plus One” strategy.
They noted that a Trump victory could increase global trade volatility, while a Harris would likely provide more excellent stability through enhanced environmental standards.
The China Plus One strategy involves securing production bases in countries other than China to diversify supply chain risks. Malaysia is a key beneficiary of this strategy amid escalating tensions between the U.S. and China.
CIMB Securities explained, “[The] electrical and electronics products (E&E) sector would likely be the biggest beneficiary in the near term, regardless of a Trump or Harris victory, but would benefit more under Harris due to relative stability and ongoing China+1 investments, followed by machinery and appliances.”
They also observed that increased U.S. energy production and ongoing tariff wars might pose challenges for the oil and gas sector under the Trump administration. Conversely, Harris’s emphasis on reducing carbon emissions could decrease global oil demand but simultaneously open up new opportunities in green technology.
While the plantation sector may experience increased demand from China under a Trump administration, a Harris administration might enforce stricter environmental regulations.
Most Commented