KUALA LUMPUR – Malaysia must seek alternative markets to mitigate potential trade risks with the United States (US), amid concerns over escalating reciprocal tariff issues and geopolitical uncertainties.
Speaking at the 'Global Markets & Malaysia: Shaping the Next Six Months' forum Pahang Investment, Industrial Development, Science, Technology and Innovation Committee Chairman Datuk Nizar Najib emphasised the need for strategic diversification in Malaysia's trade landscape.
“This is not an easy task. Over 60 per cent of local small and medium enterprises (SMEs) exporting goods are currently reliant on the US market.
“Transitioning to new markets will take time, as it involves reworking supply chain strategies and negotiating new contracts. However, I am confident that Malaysia is a resilient and crisis-proof nation capable of shielding its economy from international trade risks," he said.
Nizar stressed the importance of forging stronger trade relationships with other economic blocs, particularly China and Middle Eastern countries.
These regions, he said, hold immense potential for collaboration in sectors such as technology, food security and renewable energy.
“In uncertain investment climates, it is crucial to prioritise crisis-resilient industries such as healthcare, rare earth materials and food security. These are sectors where Malaysia can lead globally,” he added.
Promoting the economic potential of Pahang, Nizar encouraged investors to look beyond Malaysia's West Coast.
“While investors typically concentrate on states like Selangor and Penang, the East Coast, especially Pahang, offers untapped investment opportunities. We have the infrastructure and vision to become a hub for innovation and sustainable development,” he said.
He cited examples of emerging hubs in Pahang, equipped with advanced technologies such as 3D printing, laser cutting and other creative devices, aimed at democratising innovation.
“These maker hubs allow people to experiment and create at a low cost, fostering a culture of innovation,” he explained.
Acknowledging Malaysia's growing startup ecosystem, Nizar revealed that Kuala Lumpur’s startup ecosystem is currently valued at USD 4.6 billion.
“While this is nowhere near Silicon Valley or Moscow, we are taking meaningful steps to accelerate startups. Even in Pahang, we launched a startup accelerator a few years ago.
"Today, we’re grooming innovative startups, including one that increases photosynthesis rates and another that produces protein from waste using black soldier flies,” he said.
Looking forward, Nizar said Malaysia is determined to climb the global innovation index. The country’s ambition is to establish 100 AI-driven startups generating a collective revenue of RM1 billion by 2030.
He also emphasised Malaysia’s readiness to adapt and thrive in an evolving global economy.
“Like any other country, Malaysia does not want to be left out. Diversification and innovation are no longer optional, they are imperative," he said.The Global Markets & Malaysia seminar featured a panel discussion on how global market trends have impacted Malaysia’s economy. Experts reviewed key developments from the past six months and shared insights on what to expect in the coming half-year.