Matrade addressing escalating geopolitical challenges through strategies
The Malaysia External Trade Development Corporation (Matrade) is drafting strategies to address the escalating geopolitical challenges and ensure that the country’s trade performance remains unaffected.
Chief executive officer Datuk Mohd Mustafa Abdul Aziz said yesterday it had instructed all 49 Matrade offices abroad to analyse their exposure to geopolitical risks and develop contingency action plans.
He said Matrade was conducting an analysis, adding that Malaysia’s exports to countries involved in conflicts in the Middle East and Asia constituted less than one per cent of the total value.
“What we are doing is obtaining information on the export trends to these countries.
“For example, in Iran, we can sell through Doha and Dubai, and we will connect with distributors and exporters there,” he said at a briefing on the soft launch of the Malaysia International Halal Showcase 2024.
Matrade chairman Datuk Seri Reezal Merican Naina Merican said another strategy to mitigate the impact of geopolitical risks on Malaysia’s trade was by expanding into new markets, especially emerging ones.
He said this included countries such as Kenya, Brazil, Nigeria, Tanzania, Yemen, Morocco and Namibia, all of which had shown significant growth and potential.
“We also look at countries where their economic and political situations are improving and showing clearer policies to enhance trade, such as Indonesia.
“When China’s economic growth moderated previously, our exports decreased, and the same situation could occur in other regions. So, early preparation and contingency measures are crucial and these are being undertaken,” he said.
Reezal Merican said he was confident that Malaysia’s trade performance would be further strengthened with an increase of halal exports.
He emphasised Matrade’s role in advancing Malaysia’s export goals and the ambitious target of RM1.73 trillion in the 12th Malaysia Plan.
“We have achieved 82.4 per cent of the export target set for 2025, and at Matrade, we have various programmes to ensure that the target is met,” he added.