No compromise on Bumi policy during US tariff talks, says Anwar
Published on: Mon, Jul 21, 2025
By: FMT Reporters Text Size: Prime Minister Anwar Ibrahim today said that the US must respect certain boundaries during the ongoing negotiations on reducing the tariff imposed on Malaysian products. (Bernama pic) PETALING JAYA: Malaysia will not compromise on its Bumiputera policy during ongoing tariff negotiations with the US, said Prime Minister Anwar Ibrahim. Anwar said that while Malaysia valued its trade and investment ties with the economic superpower, Putrajaya remained firm that there must be clear boundaries or 'red lines' in the negotiations.
Advertisement 'The Cabinet has discussed this multiple times, but we have our position, we have our red lines – and we're prepared to face the risks,' he said, reported Berita Harian. 'What is that red line? Do not interfere with our national policies. 'They (US) say the Bumiputera policy is discriminatory. We say it's not. Malaysia stands by the policies we have adopted… This is our red line,' he said during the monthly assembly of the Prime Minister's Department in Putrajaya. Anwar, who is also the finance minister, added that procurement and opportunities for local companies must be protected during negotiations with the US. He said Malaysia was committed to safeguarding its national interests while continuing to strengthen trade relations with other countries, including China and Asean member nations, to expand market access. 'We must continue to trade and engage constructively with all countries, but no country should be allowed to impose conditions that put pressure on us,' he said in a Bernama report. Negotiations between Malaysia and the US have been ongoing following the announcement of a 25% tariff on Malaysian goods earlier this month. The tariff is expected to take effect on Aug 1. The Office of the US Trade Representative (USTR) previously cited Malaysia's halal import rules and Bumiputera equity requirements as barriers leading to the 24% tariff initially imposed on April 2. In its 2025 National Trade Estimate (NTE) Report on Foreign Trade Barriers, the USTR said that Malaysia's halal standards exceeded international norms, requiring dedicated halal-only facilities and involving complex registration processes, which raised costs and delay exports. The report also highlighted investment barriers, particularly the requirement for 30% Bumiputera ownership in foreign-owned firms and restrictions in sectors such as oil and gas, media, and public procurement. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * 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
15 minutes ago
- The Star
Tackling current business issues
INDUSTRY experts gave tips at the recent Star Outstanding Business Awards 2025 LAB participants on how to navigate the challenging times wrought with geopolitical uncertainties. Then in the second session, the panel of experts explored different methods that small and medium enterprises (SMEs) seek financing outside of the conventional practice of approaching normal financial institutions. The afternoon event, which was held at Menara Star to a packed audience, was attended by Star Media Group chief executive officer Chan Seng Fatt and chief operating officer Lydia Wang. Similar to previous labs, there were two sessions that covered two distinct topics. The first topic explored the challenges that companies face in light of 'The Tariffs and Taxes Aftermath: What is Next for Malaysian Businesses?' Moderated by the Malaysia Entrepreneurs and Development Association president Datuk Teh Tai Yong, the topic was discussed by panel speakers past SOBA winner Mega Fortris Berhad group managing director and group chief executive officer Datuk Adrian Ng, PKT Logistics Group Sdn Bhd chief operations officer Dr Jason Cheah and Malaysia External Trade Development Corporation (Matrade) strategic planning division director Noor Hayati Abu Noh. The speakers discussed the different scenarios that businesses have to confront, from the 25% tariffs imposed by the United States to the expanded Sales and Service Tax from the government as well as instances of supply chain disruptions due to the civil unrest in the Middle East. Ng advised businesses to understand themselves and to draw back until the time is right to scale back up. Noor Hayati both touched on the importance of diversification, either in business or which country to trade with. Cheah urged SMEs that it is time to start looking into environment, social and governance matters as it has a profound impact. The second session, which was moderated by Associated Chinese Chambers of Commerce and Industry of Malaysia treasurer Datuk Koong Lin Loong, gave SMEs enlightening information on 'Raising Funds and Accessing Capital for Business Growth'. Speakers in this session included RHB Bank Berhad SME banking, SME engagement head Sim Ee Chiew, Credit Guarantee Corporation Malaysia chief business officer Sean Tan, PEOPLElogy Berhad founder Allen Lee and Hernan Corporation founder and group CEO Datuk Anna Teo. The panel gave a lively session as Teo declared she rarely approached banks for financing. She asked businesses to be more flexible and explore other possibilities. While banks would be the first step for budding businesses, she said entrepreneurs should network and ask about other alternatives, such as private equities. Tan explained that CGC's job is to transfer the credit risks from a bank to CGC. In the event a business fails, and the SME is unable to pay, CGC will provide the necessary relief. Ng shared his experience of raising funds via the initial public offering route, which he said was 'more challenging because (Bursa Malaysia) wants the public to trust you (hence the need for) transparency.' Sim said that banks do much more than just provide loans, they help enhance cash flow and operation efficiency in order to eliminate idle cash, as well as digitalisation services. Besides the panel discussions, SOBA sponsors introduced their business models and some of their services to the participants. CGC's SME advisory and strategic alliances head Mike Wong talked about some of the services that are available to SMEs that are seeking ways to finance their companies. PKT Logistic's presentation was on the company's diversified range of services, from logistics and education to its own inland port, presented by Cheah. RHB Bank SME business development head Kelvin Chin and U Mobile Sdn Bhd commercial pre-sales section head Lim Swee Mei showcased the services that would benefit SMEs in their businesses. SOBA 2025 is organised by SMG with CGC, PKT Logistics, RHB Bank and U Mobile as main sponsors, Great Wall Motor Malaysia as co-sponsor, and Matrade as the official trade promotion partner. It is audited by BDO while radio stations 988 and Suria are official media partners. For details, call the SOBA hotline at 017-231 1789 or visit Look out for the announcement of the next SOBA LAB 2025, which will be held on Aug 14 at Iconic Hotel, Bukit Mertajam, Penang.
Barnama
2 hours ago
- Barnama
Malaysia's Financial Fundamentals Draw IMF Praise
REGION - SARAWAK > NEWS KUALA LUMPUR, July 23 (Bernama) -- Malaysia's financial strength and market flexibility support resilience against external shocks and capital outflows, according to the International Monetary Fund (IMF). These factors, including Malaysia's strong balance sheet, position the country well to navigate global financial volatility without major disruption, the IMF stated in its 2025 External Sector Report, released in Washington on Monday. The IMF said that Malaysia's net international investment position (NIIP) is expected to increase over the medium term, supported by projected current account surpluses. bootstrap slideshow 'Malaysia's NIIP has averaged about 2.6 per cent of gross domestic product (GDP) over the last decade, increasing to 5.4 per cent at the end of 2023, supported by strong current account surpluses during the pandemic that helped increase reserve assets,' said IMF. It highlighted that the NIIP then declined to -0.6 per cent of GDP at the end of last year because of an increase indirect and portfolio investment liabilities. At the same time, total external debt increased to 69.7 per cent of GDP at the end of 2024, compared to 68 per cent at the end of 2023, and remains manageable. One-third of the external debt is denominated in ringgit, which means it is not subject to valuation risks, the IMF noted. Additionally, short-term external debt, making up 42.8 per cent of the total external debt, is considered manageable. The IMF said this is primarily because most of it consists of intragroup borrowing among banks and corporations — an arrangement that tends to be stable — or trade credits that are backed by export earnings. It emphasised that Malaysia's external position in 2024 was assessed to be moderately stronger than the level implied by medium-term fundamentals and desirable policies. After falling in 2023 amid a challenging external environment, the country's current account surplus fell slightly in 2024, as higher intermediate and capital goods imports outweighed higher exports due to an upturn in the global semiconductor cycle, it added.
New Straits Times
2 hours ago
- New Straits Times
Abang Johari: Federal-state ties remain strong for Sarawak's progress
MIRI: Sarawak Premier Tan Sri Abang Johari Openg has reiterated that the close cooperation between the state and federal governments would continue in the common interests of both the country and Sarawak. He said the Gabungan Parti Sarawak (GPS) government, which he leads, appreciates the cooperation currently enjoyed between the state and the federal government under Prime Minister Datuk Seri Anwar Ibrahim. "In fact, at the federal level, Sarawak is represented by a deputy prime minister, namely Datuk Sri Fadillah Yusof, in addition to other ministers from Sarawak," he said in his speech at the Sarawak Day celebration here yesterday. He expressed confidence that Sarawak's efforts to achieve greater prosperity would not undermine the wider national objective of advancing the country's overall development. He said the increase in Sarawak's revenue, particularly through the Sarawak Sales Tax (SST), would not diminish the country's revenue as the federal government has sufficient avenues to boost national income without burdening the people. Abang Johari said the GPS government would continue to fight for Sarawak's rights under the Malaysia Agreement 1963 (MA63) through ongoing negotiations with Putrajaya. "Sarawak has successfully regained nine rights under MA63 and the GPS government will continue its efforts to restore all rights that have been eroded over the years," he said. He noted that Sarawak started as a state with many shortcomings and widespread poverty, especially in rural areas, during the formation of Malaysia. "Now we are grateful that Sarawak's economy has shown very encouraging growth," he said, adding that last year Sarawak recorded its highest ever revenue of RM14 billion compared to RM13.3 billion in 2023. He said this year he had presented the largest budget in Sarawak's history amounting to RM15.8 billion, opening up opportunities for a more inclusive economy. "Under the powers provided by the Federal Constitution, the state has begun to enjoy more of its oil and gas revenues through the SST imposed on petroleum products as well as through profit sharing between Petronas and Petros," he said. The premier said the World Bank had recognised Sarawak as a high-income region for three consecutive years since 2022 based on a Gross National Income (GNI) per capita of RM73,100 (US$17,000) in 2024, a figure that surpasses the threshold of RM63,800 (US$15,000) set by the bank. He said this status had placed Sarawak in fourth position after the Kuala Lumpur and Labuan and Penang, surpassing Selangor. He said the state government would continue to ensure Sarawak's resources are given added value through the creation of downstream industries, particularly in the oil and gas sector, guided by the long-term Sarawak Gas Roadmap (SGR). He expressed confidence that when fully implemented within 10 years the SGR would attract investments worth RM300 billion and generate RM120 billion in output from the product and service chain. "New industries will also be created, especially in the renewable energy sector, to generate up to 15,000 megawatts of energy by 2035, not only for domestic consumption but also for export to Asean countries," he said.
