Invest In Us For Better Leverage In Tariff Talks Says Kian Ming


 
Former Bangi MP Ong Kian Ming said Malaysia can counter the negative impact of US tariffs by improving its bargaining position in economic relations with Washington.
PETALING JAYA: Malaysia should lead efforts as Asean chairman to invest more in the US and gain better leverage in tariff negotiations with the Trump administration, says former Bangi MP Ong Kian Ming.
Ong said Malaysia could counter the negative impact of US tariffs by improving its bargaining position in economic relations with Washington.
“Malaysia has to put something on the table that will be of interest to the Trump administration. This means committing to invest in certain segments of the US economy.
“Malaysia should commit to buying more US goods,” he said at a fireside chat on navigating US-Malaysia diplomatic relations and trade risks.
Ong pointed to Malaysia’s oil and gas sector, saying companies like Petronas could invest in the US shale industry to secure diversified access to US oil and gas resources.
“This would show president Donald Trump that we’re serious about putting money into the US economy,” he said, adding that Malaysia could also consider increasing its procurement of US-made armaments.
The US recently imposed tariffs on major trading partners, including a 25% tariff on imports from Canada and Mexico, and a 20% tariff on goods from China, as part of an escalating trade conflict.
These tariffs have prompted retaliatory measures from Canada, Mexico, and China.
Ong said another way for the region to push back against punitive trade measures would be to negotiate a free trade agreement (FTA) with the US.
“This could be a good strategy to capture Trump’s interest and delay some of the economic measures that could impact the region and the rest of the world,” he said.
Currently, there is no comprehensive FTA between the Asean bloc and the US.
However, the US has a longstanding FTA with Singapore which was signed in 2004.
Several Asean nations, including Brunei, Indonesia, the Philippines, Singapore, and Thailand have signed trade and investment framework agreements with Washington to boost trade and investment ties. - FMT


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