No major impact on Malaysia: PM
Published on: Saturday, June 25, 2016
Kuala Lumpur: Britain's decision to exit the European Union (EU) bloc will not have a major impact on the Malaysian economy. Prime Minister Datuk Seri Najib Razak, in a statement Friday, said the nation's sound fundamentals, diversified economic structure and ample liquidity in financial markets means that the country is well-positioned to face any volatility. He said: "I am confident that we will be able to weather this period of uncertainty. The government will also continue to strengthen the economy and further our fiscal reforms."
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Britons had today decided in a historic referendum vote that Britain should leave the EU bloc. The votes to leave the bloc was 51.9 per cent while those wanting the country to remain was 48.1 per cent. While the step United Kingdom (UK) has taken was historic and unprecedented, Najib said the future cannot be predicted as a period of volatility in financial markets is to be expected as the ramifications of the result were understood and as the exit would be negotiated. The prime minister also said Malaysia regarded UK as an important partner in all areas, including trade, investment, defence, education and tourism.
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"Trade between us has been growing with British companies such as Rolls Royce, Dyson and BaE Systems increasing their footprints in Malaysia, and Malaysian companies driving the redevelopment of one of London's greatest landmarks, Battersea Power Station," the prime minister said. However, Najib said the nation's economic exposure to the UK was limited as it was not among Malaysia's top 10 trading partners and it only accounted for about one per cent of the country's total trade.
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He added: "We should increase this, and there may be an opportunity to do so now if the UK reaches out to strategically important nations beyond the EU.Stay up-to-date by following Daily Express’s Telegram channel.
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