Trump’s Presidency 2.0: How Malaysia Stands to Gain Amid Global Shifts

1. Market Volatility and Regional Shifts

Trump’s second presidency is expected to bring increased global market volatility. Chinese and Hong Kong markets may react negatively, which could lead foreign funds to shift towards ASEAN countries, with Malaysia emerging as a preferred destination. This shift is further supported by ASEAN’s neutral stance towards the US, making the region attractive for portfolio realignment.

Trump’s pro-growth domestic policies are expected to boost the US economy, opening new trade and investment opportunities that will also benefit Malaysia and other Asian countries.

2. US-China Trade War 2.0 Potential

The intensification of the US-China trade war could benefit Malaysia by boosting its export outlook. Trade redirection may lead to greater re-exports through Malaysia, while the China+1 strategy could encourage multinational companies to relocate their operations to the country. Additionally, Malaysia stands to gain from stronger trade, investment, and financial ties with the Global South.

3. Sectoral Impacts

4. Easing Economic Challenges

The ringgit could appreciate as the US Federal Reserve is expected to lower interest rates to around 3% within the next 12 to 15 months. This would help reduce borrowing costs and provide a more favorable environment for Malaysian exporters.