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Malaysia stands to benefit as trade diverts from China

Malaysia is likely to gain some advantage from the global tension between the US and China as the trade feud is expected to redirect investments away from China to other trading nations.

Moody’s Investors Service Inc said the diversity of export destinations will provide some mitigation to the near-term softening prospect of the global economy as a result of the trade tension.

“Asian export growth has slowed substantially in recent months as the global economy has cooled and trade volumes decline, driven by ongoing and broad-based tensions between the US and China. Gains from trade and investment diversion will depend on industrial structure, scalability and labour costs, potentially benefitting Malaysia along with Thailand, Vietnam and Taiwan,” Moody’s said in a statement.

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