Malaysia Roundup: Flood management, economy, solar equipment exports
Flood management projects
The Selangor government in Malaysia has proposed a MYR6bn ($1.36bn) underground tunnel project to manage rainwater overflow from Kuala Lumpur and reduce flood risks in the region. Inspired by successful flood management systems in Japan, the proposal aims to address frequent flooding issues in the Klang Valley. The project requires federal approval and funding and aligns with Selangor’s broader Water Master Plan for sustainable flood prevention solutions, Tunnels & Tunnelling reports.
Economic impacts of Trump’s win on Malaysia
Malaysia is monitoring potential economic impacts following Donald Trump's election win. Economy Minister Mohd Rafizi Ramli stated that the government is prepared to adapt to changes stemming from the new U.S. administration, given its influence on the global economy. Bernama reports that the country aims to remain agile in response to geopolitical developments, focusing on structural economic plans, particularly in semiconductors and energy transition. Rafizi also highlighted the 13th Malaysia Plan (13MP), aiming to establish Malaysia as a global leader in the data centre ecosystem. The plan includes initiatives to enhance the country’s position in the higher-value segments of the data centre value chain and will be tabled in Parliament on July 3, 2025.
South China Sea Code of Conduct
Malaysia aims to finalise the South China Sea Code of Conduct (COC) in 2025 during its ASEAN chairmanship, as stated by Defence Minister Datuk Seri Mohamed Khaled Nordin. He emphasised the COC's role in preventing conflicts in the region during a meeting with Chinese Ambassador Ouyang Yujing. The meeting also focused on strengthening defence cooperation and technology between Malaysia and China, marking the 50th anniversary of diplomatic relations, according to The Star.
China-Malaysia relations
Malaysian Prime Minister Datuk Seri Anwar Ibrahim says that the China-Malaysia Community has reached a new milestone in their cooperative efforts, particularly in trade, investment, digital economy, and education. He highlighted the significant progress made in the past year towards building a shared future between the two nations, coinciding with the 50th anniversary of diplomatic relations. Bernama reports that Anwar's participation in the China International Import Expo (CIIE) presents opportunities for Malaysian companies to enter the Chinese market. He also emphasised the importance of China's modernisation efforts and the potential for further collaboration, particularly as Malaysia prepares to chair ASEAN in 2025.
Possible disruption in solar equipment exports
Malaysia's solar panel manufacturers are preparing for trade disruptions following Donald Trump's return to the White House, as his planned tariffs threaten the region's export-driven growth. Recent increases in US tariffs aimed at protecting domestic manufacturers are expected to negatively impact Malaysia's solar equipment exports, Channel News Asia reports.
