Brexit economic consequences indirect, says Penang think tank
“However, the depreciation of the sterling (GBP) might affect Malaysian investors in the UK and the wider impact is likely on the political aspect of the EU project,” he said in a statement today.
Lim said although the UK and Malaysia had long trading relationship, bilateral trade between the two countries had not been large recently.
“According to the Department of Statistics, exports to the UK range were RM10.5 billion (2004) and RM9.3 billion (2015) while imports from the UK were RM6.6 billion (2004) and RM7.1 billion (2015).
Thus, trade balances of RM3.9 billion (2004) and RM2.2 billion (2015) had been in Malaysia’s favour, he said.
“Therefore, while the UK is an important trading partner, it is not the dominant one,” he said.
He said the impact on Malaysian households should be generally positive, as for most Malaysians, a holiday to the UK would be more affordable.
However, due to strong education and investment links, some households and institutions will be affected through the fall in GBP, said Lim.
“There are thousands of Malaysians studying in the UK, hence a weaker GBP would help the affordability of their education costs,” said Lim.
The institute is the public policy think-tank of the Penang State Government. — Bernama
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