Slash global recession risk by diversifying, avoid being too China-centric, expert urges Putrajaya
30 Nov 2022 04:35pm
Malaysia risk of impending global recession in 2023.
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This will not only allow Malaysia to strengthen itself but also to ensure it is able to safeguard its interests in the South China Sea and to continue to advocate on issues of interest such as the plight of the Uyghurs in China’s Xinjiang Province and in safeguarding its rights and interests in the South China Sea, Collins Chong Yew Keat, the Universiti Malaya strategy and foreign affairs analyst said.
Citing the need for a long term vision for Malaysia’s future in the face of global uncertainty and economic difficulties, Chong highlighted the need to chart an independent course for long term gains and stability, a break from the conventional entrenched reliance on China for most of its economic progress and financial support.
“Questions remain on the readiness of Malaysia to gradually change the orientation of its ties with China. In the short term, there could be a backlash that will impact our economy, a political falling out and a reduction of capital and investments.
“But on the positive side, the prospects of a long term pivot away from Beijing-centred policy making will mean that China will be having a weaker grip on Malaysia and we can have better control of our national interests,” he told Sinar Daily.
Datuk Seri Anwar Ibrahim was sworn in on Nov 24 as the country's prime minister and has yet to name a foreign minister or outline his government foreign policy stance especially with regards to China. He had however said in his first press conference since being sworn in that the relationship with China was “pivotal”.
Malaysia’s imports from China are over 14 percent of GDP compared to Indonesia, the Philippines and Thailand which are all in the single digits. Malaysian exports to China are over 12 percent of GDP compared to Indonesia, which is just over 2 percent, the Philippines under 2 percent, and Thailand at under 4 percent.
Chong said: “Malaysia has the leverage on certain critical natural resources and its semiconductor industry, which needs a new spectrum of investment and focus, especially in capitalising on the US chip policy in the region.
"The fact that it exports a range of strategic commodities to China, ranging from rare earths to palm oil, means new strategic openings must be wisely seized, to exert greater influence in regional supply chains of key resources.
“A shift towards high intensity and strategic tie-ups with the US and West and other Asian countries in these crucial next frontier sectors including the defence and security arena will translate to a better bargaining chip to ensure non-interference by China into domestic affairs as well as protecting Malaysia’s interests in South China Sea,” he said
He also added that besides economic diversification Malaysia should seek to strengthen its defense cooperation with the US, Europe and other Western nations including Australia, including Japan and South Korea to better look after its strategic security interests.
“Malaysia could also participate in, even playing a leading initial role in arrangements akin to an Asian Nato and play a role in ensuring freedom of navigation in the South China Sea,” he said.
Chong also said these initiatives also would prove invaluable to curb illegal and unregulated fishing in the region, a large part of which is carried out by China, as well as in tackling non-traditional threats including anti-terrorism efforts and combating the illicit movement of goods and human trafficking by criminal networks.
