The current economy war between the United States and China is the hottest topic on deck. This war has had a huge setbacks and negative effects on China’s economy. However, the unseen aftermath of such a clash does actually have a radius around the whole of south East Asia. Recently numbers in Malaysia have shown a drop in the stock market for the technology sector.
This drop was associated with the move of Google to blacklist Huawei and ban them from using the android software for their apps. This has caused a great deal of impact on the Malaysian market as China also uses a few outsources parts from Malaysia.
Different analysts commented on the move saying, “This technology war will evolve into a new Cold War. It is already undergoing and it will continue. The worst-case scenario is when the two largest economies break, which will then force small countries and corporations to pick sides. This will be bad for the technology supply chain including Malaysia. At its worst, the technology advancement in China and the US will be slower and Malaysian semiconductor companies are expected to see lower sales. That is the million dollar question. There are two sides to it, so I would say, leave first if you want to be safe. Others might think this is the right time to enter after the huge decline in prices. So it depends on your appetite.”