KUALA LUMPUR: 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 it has instructed all 49 Matrade offices abroad to analyse the exposure to geopolitical risks in their respective regions and develop contingency action plans.
He added that Matrade is conducting an analysis, and Malaysia's exports to countries involved in conflicts in the Middle East and Asia constitute less than one per cent of the total value.
"What we are doing is obtaining information on the export trends to these countries over the past five years, and we can use countries or cities in those regions to export to countries involved in conflicts.
"For example, in Iran, we can sell there through Doha and Dubai, and we will connect with distributors and exporters there.
"During the Gulf Cooperation Council (GCC) conflict with Qatar previously, we exported goods to that country through Oman," he said at the press conference of the Malaysia International Halal Showcase (Mihas) 2024 soft launch here.
Matrade chairman Datuk Seri Reezal Merican Naina Merican said that another strategy to mitigate the impact of geopolitical risks on Malaysia's trade is by expanding into new markets, especially emerging ones.
He noted that this includes countries such as Kenya, Brazil, Nigeria, Tanzania, Yemen, Morocco, and Namibia, all of which have shown significant growth and great potential for exporting local products.
"We also look at countries where their economic conditions and political situations are seen to be improving and showing clearer policies to enhance trade, such as Indonesia, which is poised to receive a new president with a strong mandate.
"When China's economic growth moderated previously, our exports there 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 also said he is confident that Malaysia's trade performance will be further strengthened with an increase in the exports of Halal products and services.
He emphasised Matrade's role in advancing Malaysia's export goals, including the ambitious but achievable target of RM1.73 trillion set in the 12th Malaysia Plan (12MP).
"In fact, exports were valued at RM1.43 trillion, and this was the third successive year that exports exceeded RM1 trillion, and Malaysia continued to register a trade surplus for 26 successive years since 1998.
"We have indeed achieved 82.4 per cent of the export target set for 2025, and at Matrade, we have various programmes in the pipeline to ensure that the target is met," he noted.