Miti to review products behind large trade deficit with China
Minister Johari Ghani says reliance on cheaper imports has forced some local factories to close, although prices could eventually rise amid greater dependence on foreign suppliers.
Malaysia's government is conducting an investigation into the products contributing to the country's RM146 billion trade deficit with China, as part of a broader strategy to protect the economy and reduce dependence on foreign countries. In 2025, Malaysia recorded a RM100 billion trade surplus with the US but a significant trade deficit with China.
The focus of the review is to understand why companies that previously manufactured these goods are now importing them instead, and why some factories have closed. Johari Ghani, the Investment, Trade, and Industry Minister, emphasized the need for Malaysian companies, especially small and medium enterprises, to produce more raw materials and semi-finished products currently imported by the electrical and electronics industry.
This move aims to reduce imports and strengthen Malaysia's trade surplus. The minister warned that once local manufacturers shut down, foreign suppliers could exploit the situation by increasing prices.
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- Miti to review products behind large trade deficit with China freemalaysiatoday.com
