AN IMPENDING free trade agreement between Malaysia and the US has motivated a shift of foreign direct investment (FDI) from China to Malaysia, particularly in the textile industry. According to Malaysian publication The Edge Daily, a number of multinationals are planning to relocate ahead of the signing of the agreement. The Malaysian Textile Manufacturers’ Association believes the FTA will have a “huge impact” on the industry. Malaysian textile products to the US are currently subject to a tariff of between 12% and 32%.
