In an era of renewed protectionism, tariffs and other trade barriers may be sold as a way to defend domestic industries. But they often end up raising costs, distorting markets, and triggering retaliation that harms businesses and consumers alike. Trade restrictions disrupt supply chains, dampen investment confidence, and make everyday goods more expensive.

Large economies can sometimes cushion the blow or use their market size as leverage.

Smaller states like Malaysia however, have far fewer tools. Highly dependent on open trade and external demand, they may in the short term have little choice but to absorb the impact of more protectionist policies imposed by their major trading partners.

Unlike bigger powers, Malaysia cannot easily retaliate without hurting themselves. Their more realistic path lies in the long term: strengthening domestic competitiveness, deepening economic resilience, and consistently advocating for open markets and rules-based trade that ultimately serve their interests best.

With this in mind, we are establishing Network for Market Economy (NME), dedicated to advancing free market principles as a long-term response to this increasingly protectionist era. While governments and political leaders may understandably concentrate on mitigating immediate economic pressures and shielding vulnerable sectors in the short term, we believe it is equally important not to lose sight of the bigger picture.

Over time, sustained advocacy for open markets, competition, and rules-based trade will be essential to preserving growth, innovation, and economic resilience especially for smaller economies that depend on a stable and predictable global trading system.