ICT, Auto Sectors To Gain Most From China-US Trade War: Economist

KUALA LUMPUR, Jan 29 (Bernama) -- The information and communications technology (ICT) and automotive sectors in Malaysia will gain the most from the ongoing trade war between China and the United States, says an economist. The Economist Corporate Network associate director Pamela Qiu said a lot of big and multinational companies (MNCs) are currently thinking about how to de-risk themselves from China, moving their manufacturing bases or supply chain outside of China. "From our survey, ASEAN is the huge beneficiary from this and because Malaysia has a long history of making cars and experience in electronic engineering compared to other ASEAN countries, you are well placed to absorb any investment coming out of China," she told reporters here Monday. Qiu was one of the speakers at Invest Kuala Lumpur Corporation's (InvestKL) seminar titled 'Malaysia's Outlook Amid Global Uncertainties and Fiscal Policy Reform'. Besides the ICT and automotive sectors, she said agricultural products would also benefit from the trade dispute. She said the positive change in Malaysia's democratic election landscape with a smooth change of government would help boost investors' confidence. "Right now, what business leaders are looking for is certainty on regulation and policy direction, where would the government want to invest in, put support around businesses in Malaysia, and what are the resources available for MNCs to help them set up in the country," she pointed out. Meanwhile, Qiu expects Malaysia's gross domestic product to grow by 4.5 per cent this year, ahead of the 2.8 per cent estimate for global growth, but slightly weaker than the 4.7 per cent projected for 2018. She believed growth would be driven by public consumption and strong commitment from the government in putting measures to support economic development. She said the ringgit is expected to depreciate by around five per cent against the greenback this year in view of the narrowing of the interest rate differential between the US Federal Reserve and Bank Negara Malaysia. Nevertheless, any spike in oil prices would help drive the ringgit higher, she added. -- BERNAMA