Move may impact Sabah's RM1 billion exports to United States
Published on: Thursday, May 08, 2025
Published on: Thu, May 08, 2025 Text Size: Yong said the immediate question is how the Ministry at Putrajaya or branch in Kota Kinabalu would have sufficient and reliable information about Sabah exporters and products concerned in order to issue such Certificates of Origin. Kota Kinabalu: Chambers of Commerce in Sabah, which have been issuing Certificates of Origin for exports to the US, can no longer do so effective May 6. Former Chief Minister Datuk Yong Teck Lee said this sudden change in export regulations is bound to impact the RM1 billion worth of exports of Sabah products directly to the US. He said Federal Minister of Investment, Trade and Industry, Datuk Seri Tengku Zahfrul Abdul Aziz, issued a notice on this matter two days ago. Henceforth, only Federal Ministry of Investment, Trade and Industry is authorised to issue such Certificates of Origin. Yong said the immediate question is how the Ministry at Putrajaya or branch in Kota Kinabalu would have sufficient and reliable information about Sabah exporters and products concerned in order to issue such Certificates of Origin. Sabah's exports to the US is valued at RM1 billion (out of Sabah's total exports of RM100 billion) and consist mainly oil and gas, palm oil, timber products and copper. 'The regulation here is not about tariffs but about the origin of the products,' he said, differentiating the action from that of the tariffs imposed by President Trump on various countries, many of which he has paused for 90 days since. Yong said the relevant business organisations, Chambers of Commerce, trade bodies, and exporters should quickly engage with the relevant authorities in order to ensure the smooth conduct of business and exports, including ports operations. 'At the moment, this new regulation on Certificates of Origin affects only exports to the US because it is aimed at preventing the illegal transhipment of non-Malaysian products (meaning China) via Malaysian ports to the US. 'But, if the ongoing trade war continues, then it is possible that the new regulation (on issuing on Certificates of Origin only by the Federal Ministry) might be extended to other export destinations,' Yong said, in a statement. Earlier, the appointment of the Investment, Trade and Industry Ministry (Miti) as the sole issuer of Non-Preferential Certificates of Origin (NPCO) received broad support from business chambers and trade groups, who said the measure would help protect Malaysia's trade integrity, particularly with the United States. However, industry leaders cautioned that the possibility of poor execution, lack of preparedness and insufficient infrastructure could result in bottlenecks and delays, potentially disrupting shipments and hurting exporters nationwide. The Malaysian International Chamber of Commerce and Industry (MICCI) said the government's decision to centralise the issuance of the certificates will reinforce Malaysia's export credibility and protect legitimate trade flows, particularly to the United States. 'Exporters are advised to stay updated on the revised application procedures and to engage closely with the ministry to ensure full compliance with the new requirements,' MICCI president Christina Tee said. To support compliance and reduce the risk of transhipment-related offences, MICCI is urging exporters to maintain clear, comprehensive and transparent supply chain records. 'Businesses must declare origin of products accurately and avoid any practices that could be perceived as relabelling or misrepresentation,' she added. However, Tee acknowledged that recent tariff measures imposed by the United States could present challenges by increasing operational costs and reducing competitiveness in the US market. Malaysia Consortium of Mid-Tier Companies (MCMTC) honorary president Callum Chen raised concerns over Miti's preparedness to handle the new system. He said the absence of a dedicated facility and trained personnel could result in delays, as exporters now have only one access point instead of several. 'Does Miti have enough space and officers? How long will verification take, and how will exporters outside the Klang Valley be accommodated?' he asked. * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
an hour ago
- The Star
No longer a luxury but a necessity
Aarti Verma is about to join the growing ranks of Indians installing air conditioning, scraping together savings to secure relief from sometimes deadly temperatures that can reach nearly 50˚C. A record 14 million AC units were sold in India last year, with a ninefold increase in residential ownership forecast by mid-century. That will give millions safer and more comfortable conditions at work and home. But it will also drive demand for electricity that is generated mostly by burning climate-warming coal, and increase the hot AC exhaust air expelled into the country's stifling streets. For Verma, the priority is securing some immediate relief. Her sales and marketing work means she must visit multiple stores a day, battling blazing heat. 'Coming home after a long day I want some comfort,' said the 25-year-old, who earns 30,000 rupees (RM1,500) a month and will pay 50,000 rupees (RM2,500) to install air conditioning in her spartan two-room home. 'Earlier I would sleep on the terrace, but these days it's so hot even in the night, AC has become a necessity,' she said in a poor neighbourhood of the capital Delhi. India is the world's fastest-growing AC market, despite only about 7% of households currently owning units. The boom could mean the world's most populous country needs to triple electricity production to meet demand, experts say. A customer carrying an umbrella as he visits a shop selling air coolers on a hot summer afternoon, at a market in Rawalpindi on May 30, 2024, amid the heatwave. — AFP The nation of 1.4 billion people is already the world's third-biggest producer of climate-warming greenhouse gases, burning through one billion tonnes of coal in 2024-25, according to a government statement. 'AC penetration across India is primarily driven by weather conditions, a growing middle class, favourable consumer financing options and widespread electrification,' said KJ Jawa, the India chief of Japanese AC manufacturer Daikin. He said that ACs are no longer regarded as a luxury indulgence, but as essential investments. Verma had to pay 13,000 rupees (RM657) as a down payment, with the rest divided over monthly instalments. 'I could have bought gold with that money which would have been a good investment but I gave priority to the AC,' she said. According to the meteorological department, 2024 was India's hottest year since thorough records began in 1901, with sizzling temperatures following a global pattern of extreme weather driven by climate change. A heatwave in May 2024 in New Delhi saw temperatures match the capital's previous record high: 49.2˚C clocked in 2022. The brutal summer heat can melt tarmac on the roads and puts millions of people at risk, with nearly 11,000 people dying due to heat stroke in India between 2012 and 2021, according to government data. Public health experts say the true number of heat-related deaths is likely in the thousands but because heat is often not listed as a reason on a death certificate, many casualties don't get counted in official figures. Ironically, the refrigerants inside AC units and the coal-generated electricity that powers them only exacerbate global warming. Widespread AC use also raises outdoor temperatures by expelling indoor heat. Verma cleaning an air conditioner installed inside her house in New Delhi. — AFP Studies – including by the World Health Organisation and UN-Habitat – show that the heat-generating motors inside AC units can themselves push up temperatures in urban areas by a degree Celsius or more. Before buying an AC, Verma relied on a traditional air cooler – a noisy fan-run device that blows cool air off water-soaked pads. But filling the cooler with water and making sure it did not become a haven for disease-carrying mosquitoes required great effort. Sales are brisk at Imperial Refrigeration in Delhi's old quarters, with a steady stream of customers braving the afternoon heat. Japsahib Singh Ahuja, 22, whose family owns the 50-year-old business, said sales have more than tripled in the last five years, thanks to first-time consumers and AC 'replacement cycles'. 'ACs these days don't last long, because there are so many pollutants in Delhi air that lead to corrosion and gas leakage from the equipment,' he explained. Delhi and the surrounding metropolitan area, home to more than 30 million people, consistently top world rankings for air pollution. Air conditioning will account for a quarter of India's emissions and nearly half nationwide peak electricity demand by 2050, according to the UN Environment Programme's Cool Coalition. But India has so far declined to sign up to the coalition's Global Cooling Pledge to reduce the sector's climate impact. Still, there are signs of hope, with Indians increasingly buying energy-efficient AC units, according to Ahuja. Energy-saving inverter ACs now dominate the market, and companies set a default temperature of 24˚C. 'Energy ratings are now mandatory,' said Ahuja. 'We will surely see long-term benefits.' — AFP
The Star
an hour ago
- The Star
‘No travel ban on Fahmi Reza'
Clearing the air: Razarudin said the matter is being reviewed, with steps to be taken to refine existing procedures. — Bernama KUALA LUMPUR: Bukit Aman has made clear that there is no official travel restriction on Fahmi Reza amid claims from the artist that he had been prevented from travelling abroad. The explanation came about following a statement from the Prime Minister's Office yesterday, asking the police to look into the matter. Fahmi, who bills himself as a 'political graphic designer', had said that he was stopped by immigration officers at KL Inter-national Airport 2 (KLIA2) on Saturday when he wanted to board a flight to Singapore. But Inspector-General of Police Tan Sri Razarudin Husain indicated yesterday that there is no official travel restriction on Fahmi, though his name is on a movement monitoring list for internal records and reference purposes by the police due to ongoing investigations involving him. 'However, it must be emphasised that this list does not imply any restrictions but is part of standard monitoring procedures implemented by the authorities,' he said in a statement, as reported by Bernama. Razarudin said the confusion occurred during the exit clearance process on Saturday, resulting in the erroneous issuance of a movement restriction order, adding that the matter is being reviewed with appropriate steps to be taken to refine existing procedures. He said the police remained committed to protecting and respecting the freedom of movement of every Malaysian 'and the individual concerned is free to travel in and out of the country as usual, subject to any regulations set by the Immigration Department and other relevant laws'. Earlier yesterday, the Prime Minister's Office said in a statement that the government upholds individual freedom as long as they do not compromise national security or violate existing laws. 'As such, the police must provide further clarification regarding this matter,' said the statement. On Saturday, Fahmi wrote on Facebook that he had wanted to go to Singapore for a two-day trip to attend a concert. However, he said he was stopped at the immigration counter at KLIA2 and was told that Bukit Aman has not permitted him to go overseas. Following Razarudin's statement yesterday, Fahmi issued a response, saying that the explanation from the various authorities over the matter indicated that they were pointing fingers at one another. 'I do not see any party from the government being brave enough to take responsibility for their mistake which restricted my freedom to travel,' he said. 'It is easy to say that there is no official restriction. But the reality is I got barred. I still could not travel abroad. I have been denied my right as a citizen,' he said. 'You always tell me to use the right channel, right? OK, we meet in court,' he said.
Borneo Post
2 hours ago
- Borneo Post
Sharp land tax increase puts financial pressure on Miri cooperative
Chong (third left) presides over the cooperative's AGM. MIRI (June 9): Koperasi Petani-Petani Miri Berhad has voiced serious concern over a sharp spike in its annual land tax, which has surged by 325 per cent – from RM440 to RM4,249 – posing a significant challenge to its 2025 financial planning. During its annual general meeting yesterday, secretary Oscar Chai revealed that the 2024 budget had only allocated RM1,000 for land tax, leaving a shortfall of RM3,249 due to the unexpected increase. 'The 2024 budget had only allocated RM1,000 for land tax. This unexpected increase left us a shortfall of RM3,429. 'In addition, Telekom Malaysia's rate hike in communication charges resulted in costs exceeding the initial budget by RM3602.10,' said Chai. The cumulative impact of these increases has led to a deficit of RM802.10, he highlighted. To address the situation, members of the cooperative unanimously agreed to adjust and subsidise the budget shortfalls for land tax and communication expenses. Meanwhile, board chairman Chong Vui Kuok proposed an 8.5 per cent dividend pay-out for the 2025 financial year – the highest in recent years – as a gesture of appreciation for members' continued support and contributions. 'In 2024, the cooperative recorded a total income of RM229, 722.00 and a net profit of RM67,433.00. 'This would not have been possible without the tireless support and trust of our members,' said Chong, adding that the board is committed to giving back to members through meaningful dividends. He further explained that the cooperative's income streams are primarily derived from dividends on investments in Bank Rakyat, agricultural land management fees, and rental income from shop lots and fixed deposits. In 2024 alone, it received RM91,439.15 in dividends from its RM554,207.00 investment in Bank Rakyat, he added. The proposed dividend distribution will be finalised upon member agreement and internal approval. Currently, the cooperative has 300 registered members managing over 300 acres of agricultural land. Beyond financial matters, the cooperative also reported efforts to upgrade and maintain critical agricultural infrastructure – including drainage systems, weed control, and road access. It also announced that new land lease agreements are being finalised to ensure fairness and improved returns for members managing larger land plots. These initiatives underscore the cooperative's strategic commitment to sustainable growth, financial prudence, and long-term member benefits. Koperasi Petani-Petani Miri Berhad land tax lead Oscar Chai
