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Malaysia to monitor Trumponomics impact on local, global economies: Rafizi

KUALA LUMPUR: The government will observe the impact of Donald Trump's administration on the nation and global economy, said Economy Minister Rafizi Ramli.

He said given the influence the US has on global economy, the government would have carried out due diligence of any impact a change of administration in the US has on Malaysia's economy and administration.  

"While we will wait for the next few announcements (the new economic policies to be released by the upcoming US Cabinet), we will observe how the Trump's administration will impact the global economy and ours," he said after 13MP engagement session with industry players here today.

Although Trump's administration will affect the economy, Rafizi said the nation still have to go through the plans that mostly involved semiconductor and energy sectors for a robust economy.

According to him, a lot of Malaysia's plans, when it comes to semiconductors and energy transition, is driven by the nation's domestic needs and are structural in nature.  

"That means that it's something that we have to go through in order to prepare our industry and economy to be more robust.  

"So in that sense, I think all the key reforms that have to be done still has to be done.  

"However, we still have to be nimble and agile in order for us to react and respond to any kind of geopolitics and international development that may arise from a change of administration, not just in the US but also other large trading partners," he added.

Rafizi also said the government is looking into creating the data centre ecosystem where Malaysia can participate in the value chain and begin to exports its own data centres around the world.

He said the focus has always been to tap into the opportunity presented by the data centre boom.

The government wants to avoid from attract data centre continuously but unable to get into the value chain and supply chain.

"We have been looking at how to work on a few catalytic interventions to create the ecosystem so that by the end of this decade, Malaysia also can participate in the whole data centre value chain.

"It is to gain benefit from the existing and future data centres in the country but more importantly for us to begin exporting our own data centres around the world," he added.

During the session, he said there will be an exciting announcement related to data centre but decline to comment further.

On the 13MP engagement session, he said the ministry ensures that the plan also involves the electrical and electronics (E&E), aerospace and automotive industry.

He added that the process will continue to ensure that the plans made by the government and industry can be implemented.

"The main goal is to ensure that we can shift from installation industry market to the one which designed and created.

"So the theme of 13MP for the industry is that transition, in line with the Malaysia's target to be recognised as a developed and highly-efficient country in 2028.

"We want to make sure that the structural changes in the industry are also taking place," he said.

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