There will be a lot of wait-and-see planning when it comes to new opportunities and new purchases, according to Sharmila Suntherasegarun of the Indonesian public coverage think tank IDEAS.
In this context of confusion, the scholar at IDEAS ‘ economics and business device added that attracting investments in research and growth as well as a higher value-added category of electronics would be more difficult.
The US and China’s ongoing trade tensions have also cooled the interest of small and medium-sized enterprises ( SMEs ).
” My place is that we don’t put our trust in doubt. We don’t make money in options. We make an investment in clarity. Therefore, I would advise SMEs to avoid acting on perceived option at this time, according to William Ng, chairman of the SME Association of Malaysia.
Securing SMALL CORPORATIONS
The Trump presidency is also putting pressure on some American foreign chipmakers, including Intel, to reinvest in the US.
Semiconductor and electronic products from chipmakers, including American ones, currently account for 60 % of Malaysia’s exports to the US, according to Malaysia’s Investment, Trade, and Industry Minister Zafrul Abdul Aziz.
According to Tricia Yeoh, an associate professor of politics and international relations at the University of Nottingham Malaysia, any tariffs that Washington might impose on Malay silicon goods would have an effect on these businesses, affecting work and costing them more to raise investment there.
She continued, noting that the semiconductor manufacturing industry “represents exactly the kind of manufacturing jobs that the US would prefer to re-enter to its coastlines.”
The Malaysia Semiconductor Industry Association is optimistic that these chipmakers will continue to operate in the nation.