00:00Former MP Charles Santiago urged Malaysia to strengthen local investment and stimulate
00:07domestic demand to cushion the impact of new U.S. tariffs, calling it a more pragmatic approach
00:12than getting ASEAN members to agree on a single policy. He proposed boosting green technology,
00:18expanding the solar panel ecosystem and increasing food production as ways to create economic
00:23resilience. Santiago warned that the tariffs could lead to retrenchments and business closures,
00:29initially affecting migrants but eventually hurting locals as well, and stressed the importance of
00:34job creation and keeping unemployment low to maintain political stability. He also said focusing
00:40on local food production and demand could reduce dependency on imports, especially from China.
00:46Santiago also said the response by the Investment Trade and Industry Ministry placed too much emphasis
00:52on free trade agreements while overlooking the broader goals of the U.S. tariffs,
00:57which include removing non-trade barriers and disrupting China's role in the supply chain.
01:02Meanwhile, Harold Sippel, an economist familiar with tariffs and sanctions, agreed that stimulating
01:07domestic demand could soften external shocks, citing similar moves by EU countries during the COVID-19
01:13pandemic. However, Sippel argued that for export-driven Malaysia, domestic consumption is only part of the
01:20solution, and that diversifying supply chains and focusing on strategic global positioning
01:25are more effective in managing risks from global trade disruptions.
Comments