By Danial Dzulkifly
KUALA LUMPUR, Feb 12 — Amid global uncertainty driven by Donald Trump's administration's trade wars and protectionist policies, Petaling Jaya MP Lee Chean Chung says Malaysia must use its middle-power status to strengthen regional cooperation and uphold multilateralism.
This is particularly crucial since Malaysia’s assumption of the Asean chairmanship in January 1, which will require the country to navigate uncertainties arising from global conflicts and great power rivalries, especially between China and the United States (US).
“Our middle-power diplomacy must address the evolving global order. The ‘America First’ approach under the Trump administration weakened multilateral institutions, leaving organisations such as the United Nations (deemed) less capable of addressing global challenges.
“Asean has also become a battleground for this competition, with both major powers vying for influence through economic initiatives, such as the Indo-Pacific Economic Framework by the United States and China’s Belt and Road Initiative,” he said during the debate on the royal address by His Majesty Sultan Ibrahim, King of Malaysia, in Parliament today.
Lee also dismissed concerns raised by Perak PAS commissioner Razman Zakaria, who had questioned the government over a purported RM3.7 billion in foreign capital outflows from Malaysia.
He explained that capital outflows do not necessarily reflect a country’s economic health, pointing out that Malaysia’s economy remains resilient, having attracted RM254.9 billion in foreign direct investment over the past nine months in 2024 while maintaining a sovereign credit rating of A3 with a stable outlook, according to Moody’s rating
Lee again pointed to Trump’s aggressive policies, marked by economic threats and tariffs aimed at protecting American interests. These policies have triggered capital flows back to the US, affecting not only Malaysia but also other economies worldwide, including China, Thailand, and Indonesia.
“These developments indicate that the outflow of foreign funds is not unique to Malaysia but part of a global trend,” he said.
In the same debate, Lee urged the government to clarify its stance on creating a committee under the Finance Ministry to coordinate forex risk management for government-linked companies and investment corporations.
He cited the increasing role of foreign exchange or forex in corporate profitability, using Tenaga Nasional Berhad as an example, where a significant portion of its profits and losses in 2024 stemmed from forex.
“Alternatively, should the investment mandate be reviewed to align with the country’s strategic goals while maintaining decision-making independence?” Lee said, pointing to the changes that are necessary in allowing decision-makers to operate independently without political or external interference.
