
Tariff talks progressing, M'sia reluctant on some areas
According to a Bloomberg report today, the Malaysian government is hesitant to meet the US government's demand for an extension of tax breaks on American electric vehicles (EV), a reduction of foreign shareholding limits in the power and financial sectors, and a cut in subsidies for local fisherfolk, who are a major vote bank as they are predominantly Malays.

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The Star
37 minutes ago
- The Star
Malaysia targets ‘lowest possible' tariff deal
KUALA LUMPUR: Malaysia remains in active negotiations with the United States to secure the lowest possible tariff by the Aug 1 deadline, says Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. Earlier this week, Bloomberg reported that Putrajaya is seeking to lower US tariffs to 20%. However, Tengku Zafrul told the media yesterday that '20% is definitely not the target' and that 'the direction is to get as low as possible', bearing in mind also that 10% is the floor. 'We have seen that Japan's tariffs are 15%. The updated news on the negotiations between the European Union (EU) and the United States may also see the EU with 15% tariffs. We have also seen tariffs for Indonesia at 19%, Vietnam at 20% and the Philippines at 19%. 'So we know roughly, if we give certain concessions, what kind of tariffs we would get. If we give certain concessions, we might get 20% or 19%. If we give all (the concessions), we may get 10% because there is a floor,' he told the media on the sidelines of the Asean Semiconductor Summit 2025. Tengku Zafrul said he is 'not confident' of securing a lower-than-20% tariff, stating 'I do not decide the numbers.' Further, he said that every country faces different challenges when it comes to what it can offer in the negotiations. 'We are not able to offer things that we do not have, or things we feel that may be judgmental to the Malaysian industry. 'However, I think we can get to a number which we feel is fair for both parties,' Tengku Zafrul said. Earlier this month, Malaysian exports to the US were slapped with a 25% tariff that is set to take effect on Aug 1. In the meantime, the government is in active negotiations with the US to lower the tariff. 'We have meetings every day with the United States. 'However, we must bear in mind that we are not the only country negotiating with the United States. Many other countries are also in talks with the United States, so I do not think they can engage with all parties at the same time. 'However, what is important to us is that we are going to finalise it, to see how both leaders discuss and agree on the final tariff rate,' Tengku Zafrul said. Currently, Tengku Zafrul said there were no discussions on the extension of the deadline. Meanwhile, Maria Monica Wihardja, Visiting Fellow and Co-coordinator of the Media, Technology and Society Programme, ISEAS-Yusof Ishak Institute said it is 'really difficult' for Asean countries to coordinate to respond to the US reciprocal tariffs, given as member countries 'come from different starting points and have different stakes in their negotiations with the United States'. 'Right now, Vietnam has a 20% tariff rate, Indonesia is 19%, down from 32%. However, if you look at their stakes in terms of dealing with the US reciprocal tariffs, Vietnam's export to gross domestic product is 86%, compared to Indonesia's, which is below 25%. 'Indonesia's trade balance with the United States is only 1% of their gross domestic product, while Vietnamese trade balance with the US is 20%. 'Hence, these countries have completely different stakes,' she said during the panel discussion titled, 'Navigating Geopolitical Headwinds: Government Strategies to Strengthen Asean's Semiconductor Supply Chain'. From an economic perspective, Maria said the coordination among Asean countries would 'obviously be quite tricky to implement'. 'Intra-Asean competition is perhaps what US President Donald Trump is looking for, in order to obtain bigger and more concessions from Asean countries,' she said. Deputy International Trade and Industry Minister Liew Chin Tong said Asean's strength lies in unity, underpinned by its strategic location, vibrant workforce, strong innovation and manufacturing capabilities, as well as a growing digital economy. Liew noted that policy alignment, infrastructure readiness and cross-border collaboration is needed to realise this potential. He noted that a stronger Asean cannot be only dependent on signing more trade deals among each other. 'We are going to improve on our current trade deals, but that is only part of the action. We have to come together and ask ourselves what we want to see in Asean in the next 20 years,' he said. Liew noted that ultimately, countries need to be determined that they want to see Asean as a middle-class society. 'Think about this, why are we dealing with Trump in a bilateral fashion? 'It is very much because over the last 80 years, the Asean society grew rich by exporting to the United States. 'We are seeing the United States as the consumer of the last resort and in many instances, as the consumer of the first resort. 'This is not just restricted to Malaysia or Asean countries. Up until today, Japan, South Korea, China, Taiwan, they are all seeing the United States as the consumer of the first resort,' he said. Liew added that the challenge now is in changing that and part of the effort is that Asean must not only exist as a production site. 'Asean countries need to be richer in order for the region to become a market. 'To do this, we need to rewire how we think about wages and how we think about each other,' he said.


The Star
38 minutes ago
- The Star
Data centres continue to be key growth driver
HLIB Research said it foresees a DC award cycle in the second half. PETALING JAYA: The construction sector appears to be on a growth trajectory and share prices are catching up, according to Hong Leong Investment Bank (HLIB) Research. The key drivers of the growth story came from data centres (DCs) and public sector related jobs such as roads, railways and water, said the research house. 'The robust figure in the first half of the year reinforces the growth path for contracts in 2025, extending the order book expansion trajectory. 'In our view, with the sizeable data centre tenders set for awards in the second half, there is potential to match decade high flows last achieved in 2016,' it said. 'Domestic contract awards in the second quarter of the year came in at RM11.2bil, bringing the total sum in the first half to RM27.5bil, increasing by 33%. 'This is the fifth consecutive quarter of double digit contract value awarded,' HLIB Research added, noting that order books are poised to expand. The research house noted this being the fifth consecutive quarter of double digit contract value awarded which had expanded in the billions. 'In our view, with sizeable DC tenders set for awards in the second half, there is potential to match decade high flows last achieved in 2016,' it said. 'We are foreseeing a DC award cycle in the second half, to be driven by multiple award decisions for DC tenders placed in the first half of this year – this includes multiple multi-billion ringgit tenders for one US based hyperscaler,' it added. In the DC segment, HLIB Research noted that bigger projects are better for companies such as Gamuda Bhd , Sunway Construction Group Bhd and IJM Corp Bhd , given their competitive advantages such as balance sheet strength, track record and integrated structure. 'While news of potential artificial intelligence chip curb is concerning, in our view, Malaysian contractors are reliant on US and or Western-based hyperscaler names for sizeable DC jobs, thus mitigating uncertainties to a certain extent, in our view. 'DCs aside, the second half could see more action coming from the New Pantai Expressway extension, Penang Light Rail Transit (subcontracts and systems package) while sizeable road projects in Sabah and Sarawak may materialise,' it said. 'As for the commercial segment (including residential projects sitting on commercial plots), lack of clarity on sales and services tax treatment could weigh on the pipeline in the third quarter of the year,' HLIB Research added. The research house had an 'overweight' rating with its top pick being Gamuda – a 'buy' with a target price of RM5.70. It said contractors in the sector could broadly add to their order book from the DC segment as well as from infrastructure projects, while valuations at current levels provide room for upside.


Malaysiakini
5 hours ago
- Malaysiakini
reporter fires back at Saifuddin over Jho Low
Investigative journalist Tom Wright, who helped expose the 1MDB scandal, has hit back at Home Minister Saifuddin Nasution Ismail over the latter's claim that Malaysian authorities have no verified information on the whereabouts of fugitive financier Low Taek Jho, better known as Jho Low. 'Is he calling us liars?' Wright posted on X, responding to a news report quoting Saifuddin as saying there is no verified evidence that the Penang-born businessperson is in China.