MALAYSIA should help to defuse the escalating tension between China and the US over trade, said economist Woo Wing Thye.

“Does Malaysia have a role to play (in the China-US trade war)? I would argue yes,” said the professor of economics at University of California, Davis.

“We should lobby for the use of WTO (World Trade Organisation) mechanism (to settle the trade disputes between the two superpowers),” said Woo during a public lecture on the subject, this afternoon, in Kuala Lumpur.

“Both sides are looking for allies. If Asean can get its act together, (we should) insist we want to stay friends with both,” he said.

He said local businesses might benefit from the spat in the medium term but would lose out in the short and long term.

“In the short run, (local) exporters of intermediate products to China will suffer.

“In the medium run, if the Chinese firms relocate (to Malaysia), that looks good (to us).

“If the trade war goes on, the Americans are going to cut off the ability of these people (Chinese firms) to export from Malaysia. 

“So there maybe happy times in the medium run but don’t let that fool you that the trade war is good for us,” Woo told reporters after the lecture.

He said it is in the interest of Malaysia as well as other Southeast Asian countries to work towards an amicable end to the trade spat soonest possible.

“Fighting has its own dynamics. People get emotional. The whole national pride thing comes in,” said Woo. – July 13, 2018.