KUALA LUMPUR (Feb 20): Malaysia will continue with its ‘soft diplomacy’ approach to strengthen trade relations, particularly with the US, while staying neutral amid rising geopolitical uncertainties.

The government will continue to engage with the US, including the US Department of Commerce and the US Trade Representative, Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz told the Dewan Rakyat on Thursday.

“Various simulations conducted by the ministry, together with relevant agencies, suggest that while the global economy is expected to grow, trade performance will largely be influenced by decisions made by the US,” he said.

Malaysia is highly dependent on external trade and the remarks come at a time of rising trade tensions as US president Donald Trump targets allies and rivals for tariffs. China, Malaysia’s biggest trading partner, has been frequently singled out by the US for unfair trade practices.

Zafrul was responding to concerns raised by opposition lawmakers over the potential impact of the latest trade policies by Trump while winding up the debate on the motion of thanks for the royal address.

“Malaysia will actively promote itself as a safe and neutral investment hub, leveraging our long-standing economic stability, pro-business policies, and strategic location in Southeast Asia,” he said.

Malaysia, as the Asean chair this year, will focus on promoting an inclusive economy, developing an integrated supply chain ecosystem, advancing green investment and financing, and strengthening digital resilience to enhance regional cooperation, he added.

Trump has said he will impose tariffs of about 25% on automobiles imported into the US, as well as similar duties on semiconductors and pharmaceutical products, further heightening concerns over disruptions to global trade.

For more Parliament stories, click here.