Mega Malaysia-US trade deals to be positive for economy
KUALA LUMPUR: Mega bilateral trade deals concluded between Malaysia and the United States (US) during Prime Minister Datuk Seri Najib Tun Razak’s just-concluded visit to the latter is poised to be very positive for the country’s economy in the medium- to-longterm, says an economist.
It is definitely going to be positive for Malaysia, because US is one of our key trading partners. Economist
He said the deals may start immediately, depending on the businesses that are going to be rolled out and also how fast both countries start implementing them.
“It is definitely going to be positive for Malaysia, because US is one of our key trading partners,” he told Bernama.
On Khazanah Nasional Bhd and the Employees Provident Fund (EPF) stepping up investments in the US, he described them as a good strategy especially for the retirement fund to go global.
“The local markets can only give you so much, you need to look at ASEAN, the G4 nations’ market comprising Brazil, Germany, India, and Japan.
“If you don’t go into the markets of US, Europe and Japan, we will be missing out quite a lot in terms of returns,” added the economist.
He said which ever market that EPF ventured into, including local, there was always risks.
“We need to be mindful of these risks, however, it will be good as there are opportunities,” he said.
On the possible implication on existing investments in Malaysia, he said investments were always ongoing and Asean integration was playing a key role in Malaysia currently together with India’s participation, as regional trade was getting bigger and bigger.
“Over and above, when we have global trade, investments will be alright,” he said.
On Malaysia Airlines’ collaboration with Boeing, he said it was a good path to pursue as the country had already moved towards aeronautical investments and high- value added investments. — Bernama