Reduction of US tariff rate to 19% a significant achievement, says Zafrul
The Investment, Trade and Industry Ministry said the reduced rate was a result of sustained engagement with the United States through various bilateral platforms.
"The 19% rate roughly tracks the rate of other countries in the South-East Asian region.
"Most importantly, Malaysia stood firm on various 'red line' items, and the 19% tariff rate was achieved without compromising the nation's sovereign right to implement key policies to support the nation's socio-economic stability and growth," he said in a statement on Friday (Aug 1).
"To manage the implications of the 19% tariff rate, the ministry will continue to collaborate with other ministries and agencies to cushion the effects on Malaysian exporters," he said, adding efforts would also be made to support small and medium enterprises to adjust to the new tariff rate.
Tengku Zafrul pointed out that the United States remains Malaysia's biggest export market valued at RM198.65bil and the top source of foreign investment with approved investments amounting to RM32.82bil in 2024.
The 19% US tariff rate takes effect in seven days and applies to goods entering the United States for consumption, with limited exceptions for shipments already in transit.
Signed on July 31, 2025, the order amends Executive Order 14257 and imposes revised ad valorem duties on multiple trading partners, including all major Asean nations.
Malaysia, Thailand, Indonesia, the Philippines and Cambodia each face a 19% rate, with Vietnam slightly higher at 20%.
Singapore continues to receive the lowest tariff rate among Asean nations at 10% but Laos and Myanmar face the highest at 40%.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
32 minutes ago
- The Star
CPO prices likely to remain steady
PETALING JAYA: Crude palm oil (CPO) prices are facing renewed pressure as stockpiles climb to a 19-month high, raising concerns over the earnings outlook for plantation players. Regardless, analysts foresee prices to remain elevated between RM3,800 and RM4,500 per tonne for the rest of 2025. CPO futures were trading at RM4,220 per tonne at market close, according to Bloomberg data. While prices have declined year-to-date, they have gradually recovered since early May, when the contract was trading at RM3,772 per tonne. The stronger performance comes even as Malaysian palm oil reserves are estimated to have surged nearly 10% a month earlier to around 2.23 million tonnes in July, the highest level in 19 months. Speaking to StarBiz, Malaysia Palm Oil Association chief executive Roslin Azmy Hassan acknowledged the jump in inventory levels is weakening market sentiment, particularly as the July stockpile was recorded to be the highest since December 2023. Roslin shared that the high inventory level was driven by stronger output and weaker demand. 'CPO production in July rose by around 8% compared to June, supported by improved weather, enhanced harvesting efficiency and seasonal yield recovery,' he said. 'However, export growth was not strong enough to match supply. Key buyers like India and China reduced buying due to comfortable stock levels and more competitive pricing from Indonesia,' he added. Looking ahead, Roslin said the inventory buildup could persist over the next two months. 'The high inventory scenario is expected to persist until at least October 2025, coinciding with the seasonal peak production period. 'Unless there are major weather disruptions or a sharp demand recovery, stock levels may only begin to ease in the fourth quarter,' he added. CIMB Securities head of research Ivy Ng Lee Fang shared a similar outlook, saying CPO inventories are likely to remain high in the near term. 'We expect the CPO price to trade between RM3,800 and RM4,300 per tonne,' she said. Ng added that the downside would be cushioned by slower palm oil output growth and stronger biodiesel demand in Indonesia, while the upside is capped by rising stock levels. She pointed out that two key developments to watch are whether Indonesia raises its biodiesel blend from B40 to B45 or B50, and whether the United States increases its biodiesel incentives. She also flagged potential risks from weather conditions. 'For example, the recent severe haze condition in Indonesia could affect palm oil supply if it prolongs,' she said. BIMB Securities analyst Saffa Amanina echoed the near-term cautious tone, citing elevated stockpiles that are likely to remain above two million tonnes through September. 'We expect CPO prices to remain under pressure in the near term due to elevated inventory levels, which are likely to stay above two million tonnes through September,' she said. She said this was due to seasonal peak production in both Malaysia and Indonesia, alongside the upcoming soybean harvest in the United States, which may weigh on sentiment across the broader vegetable oil market. 'We estimate that CPO prices could temporarily soften, with downside risk to briefly dip to RM3,700 per tonne,' she said. Still, she believes the decline will be limited by restocking demand from India ahead of Deepavali. Amanina projects that prices will recover towards the year-end, trading between RM4,100 and RM4,200 per tonne, supported by monsoon-related supply disruptions. She added that price pressures could also stem from the narrowing CPO-soybean oil price gap, in-house expectation of a stronger ringgit, and a wider palm oil-gas oil spread, which may reduce biodiesel blending incentives. Potential support, on the other hand, may come from changes in US biofuel targets and European restocking ahead of the European Union's deforestation regulation. While most experts are cautious in the short term, some are less concerned. Former Malaysian palm oil executive Joseph Tek downplayed fears of oversupply, saying the current stockpile levels are not unusually high. 'While end stocks are at 2.2 to 2.3 million tonnes, it is not really high. The market has just gotten used to seeing below two million tonnes. This level should be seen as neutral and I don't expect prices to react dramatically,' he said. He pointed out that the supply situation may appear elevated on paper, but regional consumption patterns are shifting. For instance, Indonesia has been using more of its palm oil locally, leaving less for export. 'The market is not exactly overflowing,' he said. While he expects the current situation to linger for a bit, he remains bullish that prices will hold steady. Looking ahead, Tek said several factors could influence the market in the second half of 2025, including production trends in both Malaysia and Indonesia, developments in the biodiesel segment, and policy decisions from the United States. 'The market is expecting a big peak in production, but I remain cautiously optimistic. My pragmatism tells me it may not be as high as anticipated,' he said. He added that while Indonesia's biodiesel blending hit a strong 95% realisation rate in the first half of the year, there have been some hiccups recently. 'If blending volumes dip, we could see prices take a hit,' he said, noting that the industry is also keeping a close watch on the rollout of the B50 biodiesel programme. Meanwhile, the upcoming announcement of the US Renewable Volume Obligations could also play a role in shaping global vegetable oil demand. 'While end stocks might look steady, these factors could still keep the market lively. I would like to think of it as a steady raft with a few interesting currents,' he said. On pricing, Tek expects CPO prices to remain firm in the near term, trading within a favourable range of RM4,100 to RM4,500 per tonne. 'I'm looking at plus or minus 5%, but if there are other intertwined factors interplaying, then we can raise it to plus or minus 10%,' he said.
Barnama
3 hours ago
- Barnama
ASEAN Day: Malaysians Share Aspirations For Peaceful, Prosperous Southeast Asia
By Suraidah Roslan & Ahmad Idzwan Arzmi KUALA LUMPUR, Aug 6 (Bernama) -- As the region commemorates ASEAN Day on August 8, Malaysians voiced their hopes for a better future through the ambitious ASEAN Community Vision (ACV) 2045, a roadmap for a united, peaceful and prosperous region over the next two decades. A civil servant, Ameelia Roslan, 29, said ASEAN symbolises regional unity and should continue to promote cooperation, inclusivity and sustainable growth. bootstrap slideshow 'To me, ASEAN represents the spirit of regional togetherness. It's about working together, supporting one another, and building a better future for Southeast Asia, especially in ensuring sustainable development that leaves no one behind,' she told Bernama in conjunction with ASEAN Day. Former assistant manager at private university, Siti Zatil Iman Mohd Maarof, 39, said that if she had the chance to deliver a message to ASEAN leaders, she would urge ASEAN member state to strengthen their cooperation without relying on others, especially Western countries. 'ASEAN is much richer and stronger than we realise. If the region can fully utilise its resources, it is not impossible for ASEAN to emerge as the world's fourth-largest economy by 2030,' For private college student Nurhikmah Harshah Zulkifli, 20, ASEAN leaders must strengthen cooperation in various aspects to ensure that less developed countries benefit from the progress of other member states. She hopes that through the successful implementation of ASEAN Vision 2045, the region will become more harmonious, resilient and stable, one that capable of withstanding future challenges while promoting peace, unity, and sustainable development among its member states. Universiti Teknologi MARA (UiTM) student Muhammad Ridzuan Zakaria, 24, believes Malaysia plays a significant role in promoting regional peace and is seen as a respected example, particularly among Islamic countries.
New Straits Times
3 hours ago
- New Straits Times
Australia's new measures to strengthen education ties with Malaysia
KUALA LUMPUR: Australia's newly announced measures to boost Southeast Asian student enrolments from 2026 will create more opportunities for Malaysians to study at its universities and further strengthen the countries' longstanding higher education ties. Australian High Commissioner to Malaysia, Danielle Heinecke, said the new measures from next year aim to attract more international students from Southeast Asia, including Malaysia. She said Malaysia and Australia share a longstanding partnership in higher education, with strong institutional links, student mobility, and alumni networks built over decades. "Australia remains one of the most popular destinations for Malaysian students with more than 13,000 Malaysians currently studying in Australia. "The Australian government is prioritising Southeast Asia, this is great news for Malaysian students wanting a high-quality Australian education and student experience. "New efforts to boost the number of students will strengthen our people-to-people links and encourage more investment in Malaysia," she said in a statement. To date, around 500,000 Malaysians have pursued their studies with Australia's world-class education providers. Besides that, four Australian universities – Monash University Malaysia, Curtin University, Swinburne University of Technology and University of Wollongong – operate campuses in Malaysia, reflecting the strength of our education ties. On Aug 4, the Australian Government announced it would increase the number of international student places next year and introduce new measures to boost enrolments from Malaysia and other Southeast Asian countries. Under the new framework, a National Planning Level of 295,000 international student places will be introduced for 2026, representing a 9 per cent increase from 270,000 places in 2025. The Australian High Commission stated that Australia's public universities will be able to apply to increase their international student allocations for 2026, by demonstrating an increased engagement with Southeast Asia, through their education offerings, partnerships, campuses, alumni and scholarships. "As part of the reforms, universities will also be required to provide additional student accommodation to ensure both domestic and international students have access to safe and secure student housing. "These changes reflect the Australian government's commitment to building stronger ties with Southeast Asia, consistent with the strategy Invested: Australia's Southeast Asia Economic Strategy to 2040," it said.
