KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Key Takeaways
New tariffs: U.S. President Donald Trump announced an additional 10% levy on Canadian goods, escalating trade tensions.
Canada’s counterplay: Prime Minister Mark Carney is leading an Asia-focused trade diversification drive, targeting new agreements with ASEAN, China, and India.
Economic strategy: Ottawa aims to double exports beyond the U.S. within a decade, reducing reliance on its southern neighbour, which currently buys ~75% of Canada’s exports.
Infrastructure focus: Western Canada — especially Prince Rupert Port — emerges as a key export hub for commodities and energy shipments to Asia.
Carney’s Asia Mission: A Reset in Foreign Trade
The timing of Carney’s first Asia tour as prime minister coincides with Trump’s renewed tariff salvo.
At the ASEAN Summit in Malaysia, Carney worked to finalise a Canada–ASEAN free trade agreement, before heading to the APEC Summit in South Korea for bilateral talks with Chinese President Xi Jinping.
The goal: build commercial resilience and secure new markets for Canadian goods amid U.S. policy unpredictability.
According to Carney, “We can’t control the trade policy of the United States, but we can control how we diversify and grow partnerships with Asia’s economic giants.”
The “Asia Pivot” in Motion
Carney’s administration has launched a rapid realignment of Canada’s trade strategy:
| Region | Initiative | Status |
|---|---|---|
| Southeast Asia | Canada–ASEAN FTA | Finalising terms |
| South Asia | Reestablishing diplomatic ties with India; trade talks expected to restart | In progress |
| China | Attempting détente despite tensions over EV and metals tariffs | Early-stage dialogue |
| Indonesia | Trade deal signed; energy cooperation deepening | Completed |
| South Korea | Shortlisted as partner for multi-billion-dollar submarine fleet project | Under review |
This marks a sharp reversal from the Trudeau era, when ties with Beijing and New Delhi hit historic lows.
Private Sector Response: From Banks to Builders
The pivot is backed by Canada’s corporate sector:
Royal Bank of Canada (RBC) plans regional expansion in Asia.
Kryton International (construction materials) is growing operations in India and China.
AltaGas & Royal Vopak are expanding their REEF energy export terminal to serve Japan and South Korea.
LNG Canada, largely owned by Asian investors, began operations in June, strengthening Canada’s role as a Pacific energy corridor.
Prince Rupert: Canada’s Gateway to Asia
Located in northern British Columbia, Prince Rupert is being transformed into Canada’s flagship Asia-facing port:
C$3 billion expansion underway to boost capacity from 45M to 65M tonnes.
New “Canxport” yard (C$750 million) to enhance trans-loading efficiency for container exports.
The ReeF energy terminal, opening next year, will export 55,000 barrels/day of LPG, with potential to scale tenfold.
The port offers a three-day shipping advantage to Shanghai over Los Angeles — an increasingly critical edge for exporters.
💬 “Our province will be the engine of a more independent Canada, less reliant on the United States,”said B.C. Premier David Eby, highlighting the West Coast’s strategic role.
Challenges Ahead
Despite the momentum, Canada faces structural and political hurdles:
Infrastructure costs: Mountainous terrain and rail bottlenecks increase logistics costs.
Pipeline politics: Proposed Alberta-to-Pacific oil pipeline faces Indigenous and environmental opposition.
Regulatory delays: Private sector leaders cite slow federal permitting as a drag on investment timelines.
U.S. retaliation risk: Trump’s protectionist stance could intensify if Canada deepens trade ties with China.
Market Implications
Commodities: Greater Asia access could lift Canadian energy, grain, and mineral exports, providing medium-term support for producers and transport infrastructure.
Logistics & Ports: Beneficiaries include Canadian National Railway (CNR CN) and AltaGas (ALA CN).
Currency: The Canadian dollar (CAD) may see reduced U.S. correlation if trade diversification gains traction.
Policy Outlook: Carney’s diversification strategy strengthens Canada’s geo-economic independence but adds short-term trade volatility.
Investor Takeaway
Canada’s “Asia pivot” marks one of its most ambitious trade realignments in decades — transforming a crisis born of tariffs into a long-term strategic opportunity.
For investors, the shift supports energy infrastructure, port logistics, and commodity-export plays linked to Asia’s demand growth.
In the near term, policy uncertainty from Washington remains a headline risk, but over time, Ottawa’s diversification could reshape Canada’s economic map — from U.S.-dependent to Asia-integrated.
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