Malaysia announces measures to safeguard its exports amid Middle East conflict

[KUALA LUMPUR] Malaysia’s trade agency, the Malaysia External Trade Development Corporation, announced measures on Thursday (Mar 5) to safeguard the country’s exports amid rising geopolitical tensions arising from the military conflict in the Middle East.

It is actively encouraging Malaysian exporters to reroute and diversify trade – as well as providing support for its companies to navigate maritime blockades, surging logistics costs and supply-chain disruptions, it said.

The agency said it is encouraging Malaysian exporters to reroute their shipments to alternative, low-risk entry ports within the Middle East, such as the Port of Fujairah in the United Arab Emirates or Salalah in Oman.

It is also accelerating plans to help Malaysian companies diversify into regions that are less affected, such as South Asia, Latin America and Africa, in addition to boosting trade with neighbouring South-east Asian countries.

Malaysian exporters can access preferential tariff treatments that provide duty savings through the various free-trade agreements the country has signed, it added.

“While the closure of critical chokepoints such as the Strait of Hormuz tests our agility, we are empowering our offices in Dubai, Jeddah and Cairo to act as front line support centres for every Malaysian exporter in need,” the agency’s chair Reezal Merican said. REUTERS