KUALA LUMPUR: Malaysia should take advantage of the geopolitical issues linked to China to attract more investments in the manufacturing sector.
Economy Minister Rafizi Ramli said with the right economic policies, Malaysia could benefit from the situation as how it has benefited Vietnam.
"Many investors and industry players who have set up their manufacturing facilities in China are taking steps to reduce the risk of exposure to the geopolitical situation.
"If we placed an important focus, this would open a transition of these manufacturing industries to other countries away from China.
"That is why we hope with the right policies, we could attract more manufacturing industry players to move from China to Malaysia," he told Dewan Rakyat today.
He was answering a supplementary question by Datuk Seri Dr Noraini Ahmad (BN-Parit Sulong) on measures taken by the government to face the economic uncertainty at the global level, especially the risk from China's economic slowdown.
Mohd Syahir Che Sulaiman ( PN - Bachok ) also asked Rafizi to state the measures by the government to weather the slowing down of exports as stated in the Purchasing Managers' Index.
In response, Rafizi said Malaysia as a trading nation which depended on exports cannot run away from the economic slowdown at the global level.
However, he said local companies must take the effort to develop its operations to be competitive and to fulfill requirements of international standards.
For instance, he said that European Union will enforce the compliance to Carbon Border Adjustment Mechanism (CBAM), which is will prevent the risk of carbon leakage in exports and imports.
"While we go through the slowdown, it is important to use the opportunity to ensure our products comply with the requirements set by the trading partners.
"This is to ensure constant competitiveness when trading with the international parties," he added.
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