COVID-19 has sparked talk of de-globalisation, but the reality will prove that the global supply chain is hard to break, Malaysia External Trade Development Corporation (Matrade) CEO Wan Latiff Wan Musa said.

Although Covid-19 has disrupted business all over the world, countries still depend on each other for supplies and goods, he told a webinar when asked on the possibility of de-globalisation.

“Yes, there is a lot of talk on de-globalization, and of regionalism, especially in domestic food production. 

“But I think it is not easy, especially for a country like Malaysia which is highly integrated into the international trade network,” he said during the webinar on doing business amid disruptions hosted by Le NouveauPro.

“I don’t believe a single country actually has the capability to produce anything alone.” 

While there are views that more countries will shift towards self-reliance in goods and food production as a consequence of the Covid-19 pandemic, Wan Latiff said the benefits of international trade outweigh the possibility of domestic-exclusive production. 

He said countries today depended on each other to ensure sufficiency in goods and services. 

“Whether you like it or not, we depend a lot on each other. We don’t have sufficient raw materials,  technology, human capital, labour, or knowledge. 

“Therefore, I think the global value chain will remain intact.” 

He said Malaysia needs to maintain robust trading activity in order to ensure adequate production of goods and supplies.

An active trade atmosphere is important for the local electrical and electronics sector (E&E), which is one of Malaysia’s most vital exports. 

“The E&E sector is highly complex, which means that it is extremely difficult to produce locally without participation from foreign stakeholders.”  – May 28, 2020.