Malaysia’s Minister for Investment, Trade, and Industry, Tengku Zafrul Aziz, recently emphasized his nation’s unwavering commitment to enhancing investment relationships with Hong Kong. This affirmation comes in light of increasing concerns that the U.S. may extend sanctions that target both Hong Kong and mainland China.

In a conference hosted by the South China Morning Post, titled ‘China Conference: Southeast Asia 2025’, held in Kuala Lumpur, Aziz made it clear on Monday that Asean plans to maintain engagement with the U.S. At the same time, they aim to mitigate the impact of Washington’s policy shifts by diversifying supply chains.

Aziz’s comments came amidst a discussion about the evolving trade dynamics and supply chain disruptions that have occurred following Donald Trump’s recent return to the presidency.

When questioned about Malaysia’s business commitment to Hong Kong given potential U.S. sanctions against the city and mainland China, Aziz maintained that the nation would stay neutral. He expressed, “As long as the spillover is positive, our people reap the benefits from our trade and investment ties with Hong Kong.”

He further added, “No other country should influence Malaysia’s policy concerning trade, investment, or even foreign affairs.”

Earlier this month, Trump enforced an executive order to apply an additional 10% tariff on Chinese imports, including those from Hong Kong. He also disclosed plans for customized reciprocal tariffs on all imports just last week.