Thai military authorized to shoot down drones without warning
The nationwide ban on use of drones came into effect on July 29, and the new measures allowing the military to intercept and destroy drones were introduced in two military districts, including the border areas between Thailand and Cambodia, the broadcaster said. In other regions the decision to destroy a drone will be taken if the military or police leadership consider it appropriate.
Thai citizens were urged to stay alert as foreign spies use drones for surveillance and transfer of classified data, the broadcaster said, adding that the civilians were encouraged to report any suspicious cases of drone use.
In Thailand espionage, especially with the martial law in effect, is a criminal offense punishable by life sentence or death penalty, the broadcaster added.
The escalation of the border conflict between Thailand and Cambodia turned into an armed confrontation on July 24. After clashes in the border area, the sides exchanged artillery fire, with Cambodia using Grad multiple rocket launcher systems, including against civilian targets in Thailand, while Thailand carried out an airstrike on Cambodian military positions. Both sides reported casualties, including civilians.
On Monday, Thailand and Cambodia announced agreeing to an immediate ceasefire following a meeting between Acting Thai Prime Minister Phumtham Wechayachai and Cambodian Prime Minister Hun Manet mediated by Malaysian Prime Minister Datuk Seri Anwar Ibrahim in Kuala Lumpur. - Bernama, Sputnik/RIA Novosti
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The Sun
36 minutes ago
- The Sun
Experts divided over Bangladesh Asean bloc bid
PETALING JAYA: Bangladesh's renewed bid to join Asean has divided opinion among Malaysian experts, with some warning of geopolitical fallout and others highlighting possible strategic and economic gains for Malaysia. The proposal re-emerged after a meeting in Dhaka last week between PKR deputy president Nurul Izzah Anwar and Bangladesh's interim leader Muhammad Yunus, who appealed for Malaysia's support for the South Asian nation's entry into the 10-member regional bloc. But analysts remain split on the viability of the move and its implications for Asean unity and Malaysia's national interests. Nusantara Academy for Strategic Research senior fellow Dr Azmi Hassan questioned the logic of including Bangladesh, noting that it lies well outside Asean's traditional geographic boundary. 'Compared with Timor-Leste, which is within the Asean region, Bangladesh is quite distant.' Azmi said a similar proposal to admit Papua New Guinea, supported by Indonesia at last year's Asean Summit, failed to gain traction. 'If Papua New Guinea didn't get support from Asean members, then even less so for Bangladesh,' he said, adding that Dhaka's entry could stir geopolitical sensitivities involving both Pakistan and India. 'Among the 10 Asean member states, I doubt there would be much support for Bangladesh's inclusion. 'In contrast, Timor-Leste had strong backing from Malaysia and Thailand. For Bangladesh, I don't see any member likely to champion its entry.' On the other hand, International Islamic University Malaysia international law and relations expert Assoc Prof Dr Mohd Yazid Zul Kepli said Malaysia could stand to gain strategically from supporting Bangladesh's bid, particularly in trade, energy and maritime security. 'Economically, Malaysia could benefit from greater market access, increased investment flows and labour cooperation, given Bangladesh's large workforce and growing economy.' Still, Mohd Yazid acknowledged the geopolitical risks, particularly the risk of India gaining indirect influence within Asean, which could complicate the bloc's relationship with China. 'Malaysia should navigate this by framing Bangladesh as a neutral economic partner and emphasising shared development goals.' He added that closer Asean ties could lead to better protections for Bangladeshi workers in Malaysia – one of the country's largest migrant groups – although any expansion must be approached with caution. 'Expanding Asean's size is not necessarily good. There should be in-depth analysis of the pros and cons.' Economist Prof Dr Geoffrey Williams offered a more critical perspective, warning that Asean is too fragmented to consider enlargement at this stage. 'Asean is not yet ready for expansion and inclusion of unstable new members,' he said, citing the unresolved tensions between Thailand and Cambodia. Williams said Malaysia does not need Asean to deepen its ties with Bangladesh. 'Any economic benefits can be achieved through a free trade agreement with Bangladesh, covering the free movement of labour and capital and zero tariffs. Asean membership is not necessary.' He also dismissed the idea that the bloc would improve governance of regional labour migration. 'Improved labour mobility can happen if Malaysia removes the agency system and cuts corruption and vested interests.' Williams added that Asean's internal diversity – spanning absolute monarchies, military regimes and one communist one-party state – already presents significant obstacles to integration. 'Adding new countries will only make integration more difficult.' Asean has never yet admitted a country outside Southeast Asia. Timor-Leste remains the only non-member in the process of formal accession. Papua New Guinea, despite previous interest, has yet to garner sufficient support.
New Straits Times
36 minutes ago
- New Straits Times
Tariff cut offers some relief but not without trade-offs
KUALA LUMPUR: Malaysia's successful push to reduce punitive United States (US) tariffs from 25 to 19 per cent offers partial relief to exporters and calms fears of a steeper economic fallout. But the reprieve, economists say, is no cause for celebration, as it is "modest at best", and likely came in exchange for Malaysia holding the line on sensitive domestic policies. COST REMAINS HIGH Economist Dr Geoffrey Williams said the revised tariff, although pitched as a win, continues to impose a heavy cost. "It just puts Malaysia in line with Indonesia and the Philippines and only marginally below Vietnam. Singapore has no reciprocal tariffs, so is way ahead of other Asean countries," he told Business Times. Williams estimated that a 10 per cent reduction in Malaysian exports to the US, the world's largest consumer market, could cost the economy RM20 billion or RM670 per person. "This is the cost of protecting Malaysian markets with non-tariff barriers and Bumiputera preference schemes," he added. POLICY RED LINE Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz said Malaysia stood firm during negotiations by drawing a "red line" on domestic economic policies. He said the 19 per cent tariff rate was achieved without compromising the nation's sovereign right to implement key policies to support socio-economic stability and growth. Williams described these trade-offs as "a huge cost" to maintaining what he called Malaysia's protectionist policies. "If the 19 per cent tariff is due to refusal to remove barriers, cut Bumiputera preferences and improve trade access, then there is a huge cost to maintaining these Malaysian protectionist policies." GEOPOLITICAL RECALIBRATION Center for Market Education chief executive Dr Carmelo Ferlito said the US tariff regime should be seen as part of a broader geopolitical recalibration. He said it had become clear early on that US President Donald Trump was not aiming for high tariffs per se, but rather to compel various players to come to the negotiating table and secure broader advantages for the US. "And of course, re-affirming that the US is the biggest consumer in the world and it's important not to get out of their influence area." While short-term impacts may take time to materialise, Ferlito pointed to deeper structural consequences. "Tariffs do not directly translate into higher prices. But the medium-run outcome will be fewer occasions for trade, fewer products in the market and potentially job losses." He urged Malaysia to strengthen its structural competitiveness instead of relying on reactive government support. "The only useful government support comes from regulation that makes business easier, limiting compliance and administrative duties and slashing anything that hinders competitiveness." CAUTIOUS OPTIMISM Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the tariff reduction signals Washington's openness to negotiation. "As a result of recent discussions, the previously imposed retaliatory tariffs of 25 per cent have now been reduced to 19 per cent. Consequently, the negative impact on Malaysia's economy is expected to be slightly mitigated," he said. Even so, Afzanizam noted that external headwinds remain a concern. Bank Negara Malaysia has revised its gross domestic product (GDP) growth forecast for 2025 to a more cautious range of 4.0 to 4.8 per cent, down from an earlier projection of 4.5 to 5.5 per cent. The revised outlook was announced ahead of the 13th Malaysia Plan (13MP), which sets an annual growth target of 4.5 to 5.5 per cent between 2026 and 2030. Meanwhile, CIMB Treasury and Markets Research and Hong Leong Investment Bank (HLIB) viewed the tariff outcome as a mixed but ultimately strategic result for Malaysia. STRATEGIC COMPROMISE While CIMB Research noted that Malaysia stood firm on protecting key domestic policies, which led to a mid-tier 19 per cent rate, it also highlighted that the country still lags behind Singapore, which remains exempt. HLIB, meanwhile, described the reduction as broadly positive, saying it enhances Malaysia's competitiveness in attracting foreign investment and reinforces its role in global supply chain diversification. STAYING RESILIENT As Malaysia begins implementing the 13MP, which includes RM611 billion in total planned funding and RM430 billion in development expenditure, economists agree that long-term strategies to enhance resilience will be critical. Afzanizam said the country must invest in productivity and forge new global partnerships, particularly with Europe, the BRICS bloc and Asean neighbours. "These measures will reinforce investor and business confidence, underpinned by pragmatic policies and the government's proactive response to emerging challenges," he said. Still, external risks persist. Afzanizam said the 19 per cent US tariff could weaken consumer purchasing power in the world's largest economy, potentially dragging on global demand and growth. Williams, meanwhile, said the timing of the announcement could not have been worse. "This will certainly take the shine off the RMK13 launch on Friday and will be the immediate focus of concern," he said.
The Star
an hour ago
- The Star
Malaysia's competitive edge intact
PETALING JAYA: Malaysia's 19% tariff on exports to the United States, reduced from 25% previously, still gives it a competitive edge over neighbouring Asean countries in attracting foreign direct investment. While many had hoped for a greater reduction in the tariff, industry experts still see it as a 'win' for Malaysia. United Overseas Bank (UOB) senior economist Julia Goh said: 'For us, it's good news going from 25% to 19% and hopefully provides some clarity for businesses. 'We are on par with other Asean neighbours, which will help to sustain our competitive advantage in the region,' she told StarBiz. Following months of intense negotiations that rattled the region's export-reliant economies, US President Donald Trump announced the revised rate in an executive order last Friday. Among Asean member countries, Laos and Myanmar face the highest tariff rate at 40%, followed by Brunei (25%) and Vietnam (20%), while Malaysia, Cambodia, the Philippines, Thailand and Indonesia are each subject to 19%. Singapore has a base tariff of 10% with no reciprocal tariff. Williams Business Consultancy Sdn Bhd founder and economist Geoffrey Williams said the tariff reduction will be 'pitched as a victory.' 'Overall, it is just a marginally better position but still hits Malaysian exports hard. If it causes just a 10% reduction in exports to the United States, it will cost RM20bil. This (equates to) RM670 for every Malaysian and is the cost of protecting Malaysian markets with non-tariff barriers and bumiputra preference schemes.' Williams said there is a need to understand what concessions the United States demanded and what Malaysia refused. 'Trump has signalled that tariff negotiations can continue in future, so this must be the focus.' Williams added that business groups will call for government support, however, this will only increase costs to the government, which will redirect subsidy savings to business bailouts. 'This would be politically damaging and economically unjustified. Businesses have to bite the bullet and accept that the trade negotiators have not succeeded. 'To mitigate the impact, they have to change their business models, become more competitive, and work with their supply-chain partners to keep prices to end buyers as low as possible.' Meanwhile, Federation of Malaysian Manufacturing (FMM) president Tan Sri Soh Thian Lai views the tariff reduction as a timely and strategic move, particularly in the current global trade environment. 'Although the six-percentage point reduction may seem modest, it is significant for industry players, especially for sectors operating on thin margins or those competing in price-sensitive global supply chains.' Soh believes the reduction enhances the cost competitiveness of Malaysian-manufactured goods in the US market. 'While some may argue that the impact on Malaysian exporters could be limited because US importers bear the tariff cost, FMM believes that the burden of tariffs is often shared across the supply chain. 'It is expected to support export growth, improve market access and further strengthen the longstanding economic ties between both countries. 'While it is still early to assess the full extent of the impact, FMM anticipates that several export-oriented industries, including electrical and electronics, machinery and equipment, rubber-based products and processed industrial goods, may benefit from improved competitiveness and increased demand.' Soh added that any changes in export volumes in the short term may be gradual. 'While some frontloading of orders may have occurred earlier, the tariff cut is likely to encourage more exporters to consider taking on new orders going forward. 'Manufacturers are mindful of the current volatility in global markets, including ongoing supply chain disruptions, and are expected to factor these considerations into their planning and responses to future shifts in demand.' Going forward, UOB's Goh maintains a cautious outlook for Malaysia's external trade prospects. She noted that Trump's previous threats to impose additional tariffs on Brics member countries and secondary sanctions on countries trading with Russia remain key watchpoints. Following the tariff revision announcement, the Investment, Trade and Industry Ministry (Miti) said that it has been working closely with agencies like Bank Negara to assess and find ways to mitigate the impact of tariffs on Malaysia's exports. This include continuing to support companies, especially small and medium enterprises, in adjusting to the new 'baseline' rate. Miti also said it will encourage exporters to make full use of Malaysia's 18 free trade agreements to diversify and expand their export markets. Its industrial reform programmes will help companies transform their operations by enhancing efficiency, embracing automation, and boosting productivity. Meanwhile, UOB Kay Hian (UOBKH) Research in a report said the 19% tariff revision aligns with its base-case view and represents a 'least-worst' scenario. 'Previously, the proposed 25% tariff had placed Malaysia at a relative disadvantage versus regional peers such as Vietnam, Indonesia and the Philippines, all of which carried tariffs at least five percentage points lower. 'This disparity had triggered significant risk aversion toward Malaysian exporters.' While a 19% tariff still appears elevated on paper, UOBKH Research said it effectively re-levels the playing field. 'We believe Malaysia remains competitively positioned within the US+1, China+1 and Vietnam+1 supply chain frameworks, supported by a diversified tech ecosystem, entrenched industrial base, strong multinational company presence and proactive policy support.'
