Trade weaponisation threatens Malaysia's position as trading nation, says Anwar

KUALA LUMPUR: Malaysia cannot take its position as a trading nation for granted as tariffs, export controls and restrictions on chips and critical minerals increasingly turn global trade into a means of exerting pressure, Prime Minister Datuk Seri Anwar Ibrahim said.

He said this was particularly significant for Malaysia given its deep integration into global supply chains, especially the semiconductor industry.

"For a country that lives by trade, essentially Malaysia is one, with factories in the middle of the world's chip supply chains, this is not a mere theoretical consideration.

"A trading nation, there is nothing equal about this, does not stay a trading nation for long," he said.

Anwar said the changing global trading environment underscored the need for countries to strengthen multilateral and international institutions to ensure greater fairness in global economic governance.

He said countries could not continue advocating democracy, human rights and economic justice while powerful nations remained reluctant to reform institutions such as the United Nations, World Trade Organisation, World Bank and International Monetary Fund.

"The Global South, through BRICS and other new initiatives, is trying to showcase the need to commensurate their numbers with some weight," he said.

Anwar said Malaysia had so far managed to navigate the increasingly turbulent global environment by maintaining economic and trade relations with both the West and the East.

He said the country had benefited from investment and trade with the United States and Europe while maintaining strong ties with China and regional partners, including South Korea, Japan and India.

"It's tough to navigate to keep the balance," he said.

Anwar said Malaysia's approach was also strengthened by its position within Asean, where regional countries had generally sought to resolve differences through negotiations while prioritising economic growth, trade and investment.

He said Asean centrality, however, must translate into the region having the capability and influence to shape events, rather than merely serving as a platform to host meetings.