The Star dated 12th Dec 2024
Malaysians can shop to their heart’s content during the festive year-end sales period because any rush to stockpile China-made goods before the US tariffs kick in is unlikely to affect supply in the market. The threat by US President-elect Donald Trump to hike tariffs on Chinese goods has prompted a rush for some companies in the United States and other parts of the world to stockpile such goods before his inauguration on Jan 20.
Associated Chinese Chambers of Commerce and Industry of Malaysia treasurer-general Datuk Koong Lin Loong said businesses producing lower-end products may stockpile raw materials to safeguard against rising production costs. “However, higher-margin businesses are less likely to stock up as it could increase holding costs, particularly during this tight cash flow period,” he said when contacted.
He pointed out that small and medium enterprises, which may lack the extra funds to stock up on inventory, could face weaker bargaining power, indirectly pushing up production costs.
Asked about the potential impact of the stockpiling rush on retailers during the coming festive seasons, Koong said it will not have a significant effect as most seasonal festive products have already been in place months ago.
