There are no winners in trade war, says Guan Eng

Finance Minister Lim Guan Eng (second from left) and Penang Chief Minister Chow Kon Yeow (left) at the opening of a factory extension in Batu Kawan, Penang, today. (Bernama pic)

GEORGE TOWN: Although Malaysia is currently benefitting from the trade war between the United States and China, the impact is only temporary, said Finance Minister Lim Guan Eng.

He said Malaysia had gained from the trade war between the two economic superpowers in terms of relocation of businesses as well as diverted trade and investment. However, he said in the long run, the country would be affected by the global economic slowdown.

“Although Malaysia is one of the beneficiaries, the trade war benefits nobody. There are no winners, only losers,” he said today after opening a factory extension here.

“We hope that both China and the US can come to a settlement. We hope that when US President Donald Trump visits Japan for the G20 Summit, he will consider the larger global interests,” he said.

Lim said the US contributed 20% and China 16% to the global economy, and the prolonged conflict between the two biggest market contributors would bring down global trade.

Lim, a former chief minister of Penang, was here to open a billion-ringgit expansion of the production facility of Hotayi Electronic (M) Sdn Bhd in Batu Kawan.

The company currently employs 850 people in Penang and the workforce is expected to increase to more than 1,000.