There are no winners in trade war, says Guan Eng

Finance Minister Lim Guan Eng and Penang Chief Minister Chow Kon Yeow (left) with Hotayi Malaysia chairman Datuk Lee Hung Lung (right) and Taipei Economic and Cultural Office representative for Malaysia Anne Hung at the launch of Hotayi Electronic (M) Sdn Bhd’s newly expanded electronics production facility in Batu Kawan June 15, 2019. — Bernama pic
Finance Minister Lim Guan Eng and Penang Chief Minister Chow Kon Yeow (left) with Hotayi Malaysia chairman Datuk Lee Hung Lung (right) and Taipei Economic and Cultural Office representative for Malaysia Anne Hung at the launch of Hotayi Electronic (M) Sdn Bhd’s newly expanded electronics production facility in Batu Kawan June 15, 2019. — Bernama pic

BATU KAWAN, June 15 — Although Malaysia is currently benefiting from the trade war between the United States (US) and China, the impact is only temporary, said Finance Minister Lim Guan Eng.

The trade war between the two economic superpowers has benefited Malaysia in terms of business relocations as well as trade and investment diversions, but 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.

“We hope that both China and the US can come to a settlement. We hope that when the US President Donald Trump visits Japan for the G20 Summit, he will consider the larger global interest,” he told a press conference after the launch of Hotayi Electronic (M) Sdn Bhd’s (Hotayi) newly expanded electronics production facility here today.

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

Meanwhile, earlier in his speech, Lim congratulated Hotayi’s move to invest RM1 billion to expand its production facility in Penang and become a strategic partner for smart manufacturing in Asean.

He said the company currently employs 850 people in Penang, and with the expansion of its production facility, the number of employees is expected to increase to more than 1,000.

“Hotayi’s management informed me that they are actively cultivating new engineering talents and skilled workers, in line with the national policy, ‘Industry4WRD’.

“In fact, Hotayi’s new plant has adopted the concept of Industry 4.0 and incorporated energy conservation features to reduce its carbon footprints,” he added. — Bernama