Western friendshoring benefits Malaysia amid US-China rivalry,

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Western friendshoring benefits Malaysia amid US-China rivalry, but could hurt global economy: trade minister 

• A complete decoupling among the superpowers would affect the world economy, says trade minister Tengku Zafrul Aziz
  
• Malaysia’s semiconductor industry is expected to continue growing in the short term as US companies look to boost their presence in the country
  

Malaysia may be a short-term beneficiary of Western friendshoring amid the US-China rivalry, but it is not something to “shout about” as a complete decoupling among the superpowers – if realised – would imperil the world economy, trade minister Tengku Zafrul Aziz has said.

In an interview with This Week in Asia on the sidelines of last week’s China Conference: Southeast Asia in Singapore, Zafrul said that along with Malaysia, the likes of Thailand and Vietnam were also gaining as the United States and its key partners adopt a policy of favouring friendly countries in building new supply chains that exclude China.

“Companies are relocating, reshoring, friendshoring … but in the longer term, I personally believe that any hindrances or obstacles to global trade will not be good for the global economy,” he said.


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