Prime Minister Mahathir Mohamad said that Malaysia may become a target of sanctions as the export-reliant economy is caught in the crossfire of the US-China trade war, reported Bloomberg.
The Prime Minister said that trade tensions between the world’s two biggest economies could evolve into another Cold war, although he did not specify who could impose the curbs.
“Economically we are linked to both markets, and physically we are also caught in between for geographical reasons, there are even suggestions that we ourselves would be a target for sanctions,” said Mahathir.
Mahathir said that the country will prepare for the worst by cooperating with regional neighbours but did not elaborate.
Neighbouring Vietnam has already drawn the US government’s ire, with President Donald Trump describing the Southeast Asian nation as ‘almost the single worst abuser of everybody’ when asked if he wanted to impose tariffs on the nation.
The central bank has denied the nation manipulates its currency and said it supports free and fair trade.