With Trump’s victory, Malaysia sees more interest from Chinese firms for business space

US president-elect Donald Trump has pledged to slap 60 per cent tariffs on Chinese goods during his campaign trail

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Former US president Donald Trump speaks at an agricultural policy event in Smithton, Pennsylvania, on September 23. Photo: Reuters

Published: 4:02pm, 12 Nov 2024Updated: 4:37pm, 12 Nov 2024

Inquiries by Chinese companies for factory and office space in Malaysia have spiked since Americans voted for Donald Trump to return to the White House, driven in part by his campaign pledge to slap 60 per cent tariffs on Chinese goods.

During his first term, Trump’s “America First” policy sparked a trade conflict with China, with tariffs imposed on US$550 billion of Chinese products. The tensions between Washington and Beijing also led to disruptions in global supply chains and fuelled uncertainty in financial markets.

With multinationals seeking alternative suppliers outside China, regional countries, including Malaysia, Thailand and Vietnam, have benefited from the diversification, especially in sectors like semiconductors and medical supplies.

Southeast Asia nations are preparing for more turbulence ahead after Trump said a blanket tariff regime would be levied at 10 per cent on all imports.

In Thailand, WHA Group CEO Jareeporn Jarukornsakul told Reuters that the industrial estate giant has been flooded with phone calls from Chinese customers in anticipation of the tariff spike, prompting it to expand its Chinese-speaking sales force.

Similarly, Malaysian real estate sellers have been reporting an uptick in interest in business relocation as Trump’s return to the White House may bring a surge in Chinese companies looking to move supply chains to Southeast Asia to shield their business from the tariff impact.