Prime Minister Mahathir Mohamad explained his consternation of the possible trade sanctions to Malaysia this early Monday. Reportedly, the 94-year-old PM is feeling unease amid the unforeseeable US-China trade war.
“Unfortunately, we are caught in the middle. Economically we are linked to both markets, and physically we are also caught in between for geographical reasons. There are even suggestions that we ourselves would be a target for sanctions,” he stated.
Regarding the sanctions, PM Mahathir did not disclose any further details that support the statement. He only expressed his disappointment to see the proponents of free trade now indulging in restrictive trade on a grand scale.
Pertinent to the sanctions, Malaysia heavily relies on trade. Thus, this insinuates that sanctions must be the last thing the country needs to sustain its economy.
Furthermore, both China and the US are Malaysia’s second and third-biggest trade partners after Singapore. If by any chance, the trade deal went wrong, Malaysia would be an indirect casualty.
Also Read: US-China Trade War: How Will Malaysia Benefit From It?
Malaysia-EU Palm Oil Trade Dispute
On the same occasion, PM Mahathir also hinted that big nations are currently ‘bullying’ Malaysia. His statement of dissatisfaction refers to the EU countries’ campaign to limit palm oil trades from the world’s biggest palm oil producer, Malaysia, and Indonesia.
Long story short, the palm oil trade dispute began earlier this year when the EU declared that they wanted to decrease the use of palm oil products gradually in the future. Accordingly, the reason is due to deforestation.
However, what concerns Indonesia and Malaysia is that the EU bans no other biofuel products such as soybean oils. Both countries perceive this as a discrimination to the palm oil industry.
“Having cleared most of their forests and refusing to reduce their noxious emissions, they now try to impoverish the poor by preventing them from clearing their forest for living space and earning a living,” Mahathir said.
Considering the palm oil dispute, the EU is not the one and only ‘opponent’ of the country. Previously, India is planning to limit palm oil trade from Malaysia due to Mahathir’s comment over the conflicted Jammu and Kashmir.
Also Read: Malaysia Might Join Indonesia-EU Trade War