Recently, there have been calls for Malaysia to cut diplomatic ties with Myanmar over the persecution of its Rohingya minority, reportedly being carried out by the country’s security forces.
Speaking to FMT, Hoo Ke Ping said Malaysia’s exports to Myanmar stood at only “a few billion ringgit” annually which was “peanuts” compared with our total trade with other countries around the world.
“Our imports from Myanmar are also minimal. So, relatively speaking, the impact to us would be minimal.”
According to statistics from the Malaysia External Trade Development Corporation (Martrade), the total trade between Malaysia and Myanmar in 2014 was registered at US$972.1 million.
Malaysia’s main exports to the country are petroleum products, palm oil, chemical products and processed foods.
“At most, the biggest impact would be on businesses in Malaysia which employ Myanmars who would have to return to their country, but even then, this would only be temporary as there are other sources of foreign labour.”
He said even the Myanmars would be able to find employment in other Asean countries.
According to human resources ministry statistics, as of June this year, some 141,000 Myanmars are employed in Malaysia, primarily in the manufacturing sector.
Despite the minimal implications of cutting ties with Myanmar, Hoo said Malaysia should not do so as it would not resolve anything.
“Cutting ties will not solve the issue, more so when Malaysia’s stance is seen to be done more for political reasons.
“The Rohinyga issue has been around for decades, but only now Umno is taking a strong stand on the issue.”
Institute for Democracy and Economic Affairs (IDEAS) manager for external relations Azrul Mohd Khalib said it did not make sense to cut diplomatic ties with Myanmar.
“The atrocities happening in Myanmar’s Rakhine state are serious and Myanmar needs to be told that such activities are not acceptable.
“However, what is being suggested is based on irrational and emotion-filled rhetoric which we must look beyond.”
Azrul said if diplomatic ties were severed, Malaysian investments would be jeopardised and our influence on the Myanmar government would be less.
In Malaysia, Azrul said the businesses which relied on labour from Myanmar would face a “temporary setback” if ties were severed as there were other sources of labour such as from Bangladesh.
“As one of their trading partners, we would be smarter to use our economic and trade leverage to caution Myanmar and call on them to cease the atrocities against the Rohingyas.”
The violence against the Rohingyas, which has reportedly seen hundreds killed and raped, and left tens of thousands displaced, has drawn international condemnation.
Although Malaysia has taken a strong stance against the violence, Prime Minister Najib Razak has said the crisis had not reached the point where diplomatic ties needed to be severed.