Nonetheless, Malaysian exporters should consider looking beyond the China market if the lockdown continues for the longer term, according to an economist.

Professor of economics at Sunway University Yeah Kim Leng said this could reduce Malaysia’s heavy dependence on China, and by extension the severity of the impact of a prolonged lockdown.

He pointed out that 16% to 17% of Malaysia’s total exports today are bound for China, making it one of the major markets for Malaysian goods.

In comparison, the United States accounted for only 9.1% of Malaysia’s gross domestic product in January, as reported by the Malaysian External Trade Development Corporation.

However, Yeah also pointed out that the Covid-19 restrictions in China are already easing, and if it does not extend beyond a month or two, the impact on Malaysia would not be as severe.

The full or partial shutdowns in dozens of cities in China has had a negative impact on its economy. According to the latest economic indicators, for April, retail sales fell by 11.1%, factory activity contracted by 2.9% and the unemployment rate rose to 6.1% from 5.8% the month before.

Yeah said that the impact on Malaysia may not be so severe if the restrictions are lifted soon.

“The Chinese government is currently ramping up growth by cutting interest rates to encourage spending in order to help offset the current slowdown,” he said.

“Current projections for China’s growth is said to be around 5% to 6%, and if the lockdowns are not too long, it should be able to achieve this target,” he added.