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Q:US Tariff war will it benefit Malaysia Cable Sector?
A:Yes, Malaysia’s cable sector could potentially benefit from the U.S.-China tariff war. Here’s why:
1. Diversification of Supply Chains:
As U.S. companies face higher tariffs on products from China, many are looking for alternative manufacturing locations, especially for industries like cables and electrical components. Malaysia, with its established manufacturing base and competitive labor costs, has seen an influx of companies shifting production to avoid Chinese tariffs.
2. Manufacturing Strength:
Malaysia already has a strong presence in the electrical and electronics (E&E) sector, which includes the production of cables, wiring, and related components. Local companies, such as CableTech and PDS Cable, are already competitive players in this space, and the trade war has prompted more companies to source from Malaysia due to its proximity to key Asian markets and its ability to offer high-quality, cost-effective products.
3. Trade Agreements:
Malaysia benefits from several free trade agreements (FTAs) and partnerships like the ASEAN Free Trade Area (AFTA), which allows for relatively easy access to U.S. markets without heavy tariffs, making it an attractive alternative for U.S. buyers seeking to avoid China-specific trade barriers.
4. Infrastructure and Innovation:
Malaysia has been improving its infrastructure and manufacturing capabilities in high-tech sectors, which is beneficial for producing specialized cables, such as those for telecommunications, data transmission, or even power cables used in renewable energy projects. This makes Malaysia increasingly competitive in global supply chains.
5. Cost and Quality:
Malaysia offers a good balance between lower production costs (compared to developed countries) and high-quality standards. This is crucial for sectors that require precision and reliability, like cables used in telecommunications or the energy sector.

However, there are challenges to consider too. While Malaysia benefits from the tariff