Strategic competition between the United States and China has intensified in recent years, with Europe joining the US particularly since the COVID-19 pandemic and Russian invasion of Ukraine. The trend towards economic decoupling, with the US and its allies seeking to secure and diversify their supply chains away from China, has opened new opportunities for countries in Southeast Asia. Malaysia has several advantages, in terms of its longstanding relations with these countries and their Multinational Corporations (MNCs), relatively developed and efficient infrastructure, and an educated workforce. However, political instability and an uncertain policy environment in the country give MNCs some cause for concern, particularly given the significant competition from Malaysia’s regional peers, namely Vietnam and Indonesia.
Last updated on 24/06/2022