MATRADE Drives Diversification Programme Amid Global Geopolitical Uncertainties

KEPALA BATAS, April 26 (Bernama) -- Malaysia’s trade strategy is now focusing on diversifying markets to reduce dependence on a particular region, while strengthening the resilience of the country's exports, especially amid global geopolitical uncertainties. 

Malaysia External Trade Development Corporation (MATRADE) chairman Datuk Seri Reezal Merican Naina Merican said the approach is implemented through the “Diversification Programme” strategy, which focuses on expanding export destinations to non-conflict areas such as Central Asia and Africa. 

He said Malaysia’s exports to West Asia currently account for only about 2.7 per cent, indicating significant room for expansion through market diversification. 

“The strategy we are driving is a two-pronged approach, namely market diversification and strengthening Free Trade Agreement (FTA) cooperation,” he said after the MADANI Sales Programme for Cooperatives and Entrepreneurs (JMKU) in Permatang Sintok, here, which was officiated by Entrepreneur and Cooperatives Development Minister Steven Sim. 

Reezal Merican, who is also the Bertam State Assemblyman (ADUN), said the first pillar involved expanding export destinations to more stable regions such as Central Asia, Southeast Asia and Africa, which are identified as low-conflict-risk areas. 

He said the second pillar focuses on utilising FTA cooperation, which provides broader market access by reducing or eliminating tariff barriers. 

“Our FTA partners have opened up bigger access; many tariff barriers no longer exist, so we need to take advantage of this opportunity to increase exports,” he said. 

He said the strategy also includes a “regain and retain” approach to identify markets that can be recovered or maintained, including countries with relatively small trade deficits. 

Reezal Merican also stressed the need to address global supply chain disruptions, stating that sectors such as electronics may be less affected, but food-related and halal industries are more vulnerable as they depend on key consumer markets in certain regions. 

Meanwhile, he said a whole-of-government approach is important to ensure effective implementation, involving coordination between ministries and agencies, including the Ministry of Entrepreneur and Cooperatives Development. 

He said MATRADE will also continue to hold engagement sessions with stakeholders to ensure stronger coordination and synergy in supporting micro, small and medium enterprises amid an increasingly challenging global trade environment. 

-- BERNAMA