Politics · Malaysia Bureau
Malaysia to review imports as China trade deficit widens
The government is examining product categories driving Malaysia's substantial trade imbalance with China, as reliance on cheaper imports threatens local manufacturing capacity. Officials warn that increased dependence on foreign suppliers could eventually push consumer prices higher.
LSN Malaysia ·
The Ministry of Investment, Trade and Industry (MITI) has announced plans to review the products contributing to Malaysia's widening trade deficit with China, seeking to address concerns about the impact on domestic manufacturers. Minister Johari Ghani highlighted that an over-reliance on cheaper Chinese imports has forced some local factories to cease operations, undermining the country's industrial base. The ministry's review aims to identify sectors where Malaysian producers can compete more effectively and reduce the structural imbalance in bilateral trade. While cheaper imports have initially benefited consumers, officials cautioned that greater dependence on foreign suppliers poses medium-term risks to price stability and economic resilience. The government is expected to consider policy options, including potential trade measures and support for local industries, as part of efforts to rebalance the import-export relationship with China.