Battle for spoils of US-China trade war has Malaysia’s Mukhriz Mahathir touting Kedah’s arsenal

Fifth child of Prime Minister Mahathir Mohamad has the tall order of luring Chinese businesses to one of Malaysia’s poorest states as investors eye new markets

But the chief minister says the region is well armed for the task and Kedah is the natural choice for tariff-weary manufacturers

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Mukhriz Mahathir at his official residence in the Kedah state capital of Alor Setar. Photo: Tashny Sukumaran

Published: 9:00am, 17 Sep 2019Updated: 10:39am, 18 Sep 2019

As the US-China trade war drags on, Southeast Asia’s economic policymakers have been racking their brains on how best to reap the direct investment bounties from Chinese manufacturers fleeing the seemingly unending tariff battle.

For Mukhriz Mahathir, there is a tougher nut to crack: figuring out how to lure these investors to the largely rural northern Malaysian state of Kedah – one of the country’s poorest regions – where he is the chief minister.

In an interview with the South China Morning Post on his plans to lift the largely agriculture-based state’s economy, the fifth child and only political heir of Prime Minister Mahathir Mohamad said ongoing efforts by Kedah and other states to draw in these Chinese investments had been helped partly by the high esteem in which Beijing’s leaders held his 94-year-old father.

“I get the sense that they have a certain level of respect for leaders that know what they want and have long-term experience … That sort of thing they acknowledge and respect,” he said.

Kedah is one of Malaysia’s poorest regions. Photo: Handout

Mukhriz said his state’s less developed status compared to the country’s economic powerhouses such as neighbouring Penang was a boon in the current times, as it meant foreign investors would enjoy lower costs if they decided to sink their roots there.

The 54-year-old is serving his second term as Kedah chief minister.