Malaysia says trade growth target achievable despite US tariffs
Trade growth of about 4 per cent to 5 per cent in 2025 is 'still achievable,' Zafrul said at a briefing in Kuala Lumpur on Tuesday (Jul 15). The ministry has observed front-loading activity and expects this to continue given the Aug 1 deadline for US levies to kick in, he said.
Exports in May contracted for the first time since September 2024, signalling a rocky road ahead for Malaysia as it contends with steeper tariffs. The trade-reliant nation was threatened with a 25 per cent levy from the US, higher than the initial 24 per cent announced in April, and officials are racing to negotiate with Washington to bring it down further before Aug 1.
The US wanted equity restrictions lifted on all of Malaysian industries, Zafrul said. The ministry is meeting with stakeholders on this to check if the country is ready to liberalise its sectors, he said. BLOOMBERG
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
2 hours ago
- Business Times
Bank of Japan to hold rate steady with likely upgrade to price view
[TOKYO]The Bank of Japan (BOJ) is expected to keep its benchmark interest rate steady and boost its inflation outlook on Thursday (Jul 31), as investors look for hints of another rate hike this year after a US-Japan trade deal reduced some uncertainty. All 56 economists forecast governor Kazuo Ueda's board will leave the central bank's interest rate unchanged at 0.5 per cent at the end of a two-day policy meeting, according to a Bloomberg survey this month. In the bank's quarterly economic outlook report, the inflation projection for this fiscal year is likely to be revised higher, they said. A primary focus for this gathering will be the extent to which the BOJ signals another rate hike this year, with traders now seeing a roughly 75 per cent chance of a move by year-end. BOJ officials see the possibility of mulling of another hike after Japan's trade deal with the US diminished a key source of uncertainty, sources familiar with the matter said earlier. With the key task of discerning the actual impacts of the tariffs still remaining, the BOJ will not be looking to suddenly hike rates at this point. Deputy governor Shinichi Uchida, a key policy architect at the bank, said last week that while the deal is a major breakthrough, uncertainty remains high. Still, the search for rate hike hints from the BOJ is gradually gaining momentum, with October becoming more popular as the potential timing for the next increase. Last week, Deutsche Bank Securities and Barclays Securities both brought forward their calls to October. The US and Japan unexpectedly struck a pact on Jul 22, setting most tariffs at 15 per cent. The lowering of auto levies from the 25 per cent that Trump imposed in April, in particular, is set to provide relief for a core part of Japan's economy. That was followed by a similar agreement between the European Union and the US this week, easing concerns for the global economy. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The BOJ officials noted that the outcome of Japan's negotiation was roughly within the range of their expectations and it's probably unnecessary to make a drastic change to the central bank's overall economic outlook, sources familiar with the matter said earlier. In its April outlook report, the bank said that it expects economic growth to stall temporarily due to the tariffs, before picking up to bring underlying inflation to meet its goal sometime between October next year and March 2028. BOJ watchers expect Ueda's nine-member board to raise its median inflation forecast for this fiscal year to 2.5 per cent from 2.2 per cent, while keeping views for the following two years unchanged, according to a Bloomberg survey. The pace of increases in the cost of living has stayed elevated, averaging 3.5 per cent in the first three months of the fiscal year that began in April. Inflation has been driven by a surge in food prices and in particular rice, the nation's staple food. Former BOJ chief economist Hideo Hayakawa said that firmness in prices will allow the bank to raise its inflation projection for next year, but the bank will likely keep it below 2 per cent to avoid fuelling too much speculation over a rate hike. The Federal Reserve is set to announce its policy decision hours before the BOJ, and its conclusion and signals could have major implications for the course of the yen. As at Tuesday, the Japanese currency has dropped the most against the US dollar in the past three months among major currencies, as the Fed and the BOJ have both remained in a wait-and-see mode. Following repeated warnings from US President Donald Trump that Japan should not seek a trade advantage via a weak currency, Ueda's BOJ needs to strike a delicate balance to avoid sounding too cautious on raising borrowing costs. This is the first BOJ gathering after Prime Minister Shigeru Ishiba's ruling coalition sustained a historic defeat in an upper house election on Jul 20, reflecting high public discontent over inflation. With his government now lacking a majority in either house of parliament, the Japanese leader has been confronting resignation calls from both ruling and opposition party members. As with most other central banks, the BOJ typically does not comment on politics, but political instability could make navigating policy more complicated. After political parties pledged cash handouts or tax cuts ahead of the poll, the central bank will need to keep its eyes on the fiscal policy's impact on inflation and bond yields. Ueda usually holds a press conference at 3.30 pm to elaborate on the BOJ's thinking after the release of a policy statement and economic forecast around noon. Here are other key points to watch for
Business Times
3 hours ago
- Business Times
UK mortgage approvals rise as buyers return after tax hike
[LONDON] The number of UK home loans given the green light rose to a three-month high in June, as the housing market continued to shake off the impact of April's tax hike. Mortgage approvals climbed to 64,167, up from 63,288 in May, Bank of England (BOE) data showed on Tuesday (Jul 29). It was better than the 63,100 expected by economists surveyed by Bloomberg. Net mortgage lending, which reflects approvals granted in previous months, more than doubled to £5.3 billion (S$9.1 billion) . It adds to evidence that demand is steadying after being rocked by an increase in property taxes, which fuelled a spurt of buying before it took effect in April and a slowdown afterwards. The housing market nonetheless faces headwinds from a slowing economy and anxiety about the outlook, while surveys show an abundance of properties for sale is weighing on prices. 'Secured lending activity continued to recover in June, as the impact of April's change in stamp duty thresholds continued to fade,' said Matt Swannell, chief economic advisor to the EY ITEM Club. 'Stepping back from the policy-induced volatility, the outlook for housing market activity remains relatively subdued,' he added. 'Interest rates are expected to fall further this year and into next. However, despite some progress in recent years, most housing and mortgage affordability metrics remain stretched, so the recovery in activity and prices will likely be gradual in the second half of 2025 and into 2026.' The BOE data also showed that unsecured lending to consumers rose £1.4 billion in June, bouncing back from May when it slumped below £1 billion for the first time this year. It was stronger than the £1.2 billion economists forecast, with the increase driven by a sharp pickup in credit card borrowing. However, a jump in the amount of cash households deposited in bank and building society accounts to £7.8 billion last month suggests consumers remain cautious with a continuing preference to save rather than spend. The figure, which was well above the six-month average of £5.6 billion, was driven by households depositing an additional £3.6 billion into tax-free Individual Savings Accounts and £1.2 billion into interest-bearing sight accounts, the BOE said. BLOOMBERG
Business Times
11 hours ago
- Business Times
Starhill Global Reit H2 NPI flat at S$74.5 million
[SINGAPORE] The manager of (real estate investment trust) posted a net property income (NPI) of S$74.5 million for the second half ended Jun 30, 2025, flat compared to the year-ago period. The manager, in a bourse filing on Tuesday (Jul 29) attributed the lack of growth primarily to higher contributions from Singapore retail properties and net movement in foreign currencies, which were largely offset by loss of contribution from certain divested strata office lots in Wisma Atria and rental arrears provision for its China property. Starhill Global Reit's Singapore retail portfolio comprises interests in Wisma Atria and Ngee Ann City in Orchard Road. It also owns assets in Japan. Excluding the effects of divestment, its H2 FY24/25 NPI would have increased 0.6 per cent year on year. Its revenue inched up 0.7 per cent to S$95.8 million from S$95.2 million previously. Income available for distribution for H2 FY24/25 stood at S$44.5 million, an increase of 4 per cent from S$42.8 million in the year-ago period. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up The rise was mainly attributed to higher NPI, lower tax expenses and net finance costs, retention of part of the net divestment proceeds in the current period, as well as the one-off leasing commission in relation to its Toshin master lease renewal in the previous corresponding period. This was partially offset by higher legal and professional fees. The Reit's manager will retain about S$2 million of income available for distribution for H2 FY24/25 for working capital requirements. The Reit also posted a flat distribution per unit (DPU) of S$0.0185 in the second half ended Jun 30, 2025. For the full year, DPU was 0.6 per cent higher at S$0.0365. This represented an annual yield of 7.2 per cent, based on the closing unit price of S$0.51 as at Jun 30, 2025. The distribution reinvestment plan will apply for the H2 FY24/25 distribution, with the issue price of new units announced on or around Aug 6. Unitholders can expect to receive their H2 FY24/25 DPU on Sep 24. Improved operational performance The Reit's full-year NPI rose 0.8 per cent to S$150.2 million, mainly due to higher contributions from Singapore retail properties and Perth properties, as well as the appreciation of the Malaysian ringgit against the Singapore dollar. This was partially offset by loss of contribution from the divestment of the Wisma Atria office strata units, rental arrears provision for China Property, higher operating expenses and the depreciation of Australian dollar against the Singapore dollar. Revenue for the full year was up 1.2 per cent on year to S$192.1 million for FY2024/25, and income available for distribution for the period grew by 3.7 per cent to S$87.8 million. The group's portfolio valuation remained stable at about S$2.8 billion. The figure would have reflected a 0.9 per cent year-on-year increase if not for the divested strata office lots in Wisma Atria in FY24/25. The gains were mainly due to the upward revaluation of its Ngee Ann City property, The Starhill, and Australian properties in June 2025, partially offset by net foreign currency movements. Ho Sing, chief executive officer of Starhill Global Reit's manager, said the partial divestment of its office portfolio enabled the Reit manager to demonstrate the asset's value, strengthen financials and further improve liquidity amid ongoing market uncertainty. 'The improved operational performance for the year was mainly driven by our Singapore portfolio, which achieved full committed occupancy and delivered positive rental reversions,' he added. Notably, at Wisma Atria, shopper traffic climbed 5 per cent year on year, although tenant sales declined 5.2 per cent. Starhill Global Reit owns the majority of units at the mall. The Reit also renewed its current master lease at Ngee Ann City Property with Toshin ahead of expiry. Gearing remained stable at 36 per cent, with a weighted average debt maturity of 3.1 years. Units of Starhill Global Reit closed flat at S$0.55 on Tuesday.
