Malaysia set to unveil US trade deal after Trump-Anwar call
Malaysia and the US had discussed a tariff rate below 20%, said people familiar with the plan, asking not to be identified because the talks are private. The call lasted about 20 minutes, they added.
Anwar said in a speech to parliament he discussed tariffs with Trump in a call on Thursday morning. The Malaysian leader added Trump would announce the levy for goods from his country on Friday, without offering details on what the level might be.
The US president had threatened to impose a 25% levy on Malaysian goods unless a deal was reached by Friday. The agreement follows other deals reached in Asia — with goods from the Philippines and Indonesia facing tariffs of 19%, and Vietnam 20%.
Spokespeople at Anwar's office and Malaysia's Ministry of Investment, Trade and Industry didn't immediately respond to requests for comment.
The threat of steeper tariffs has weighed on Malaysia's trade-reliant economy, leading the central bank to cut its growth forecast for 2025 to a range of 4% to 4.8%. Bank Negara Malaysia also lowered interest rates in July by a quarter point to preemptively support the economy.
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Bangkok Post
6 hours ago
- Bangkok Post
Border crisis blues
Simmering tensions along the Thai-Cambodian border have intensified the political storm in Thailand, with analysts saying the Pheu Thai-led government is rapidly losing public trust amid accusations of weak leadership, poor crisis communication, and possible secret dealings. Public confidence in Pheu Thai had already declined, as indicated by the second quarter NIDA Poll, conducted on June 19-25. Prime Minister Paetongtarn Shinawatra, suspended from duty pending a Constitutional Court ruling over a leaked audio clip involving her conversation with Cambodian Senate President Hun Sen, won an approval rating of just 9.20%, down from 30.90% in the first quarter. The sharp drop came even before the recent border clashes erupted. Analysts believe the escalating violence and the government's sluggish response are likely to further shrink public support. Absence of trust Olarn Thinbangtieo, deputy dean of Burapha University's faculty of political science and law, said the Paetongtarn administration has struggled from the start to dispel public doubts about possible hidden agendas due to the Shinawatra family's close ties with Cambodian strongman Hun Sen. Distrust began to grow following a meeting between her father, former prime minister Thaksin Shinawatra, and Hun Sen at Thaksin's home in Bangkok after he was granted parole in February last year. The situation further deteriorated after Ms Paetongtarn was heard criticising the commander of the Second Army Region and appearing overly willing to yield to Hun Sen's demands in the leaked conversation. Following the border clashes, the government has been criticised for failing to manage crisis communication. While the military has taken a proactive role, the government's slow response has fueled speculation about behind-the-scenes interests, said Mr Olarn. And rather than addressing the situation directly, the government has allowed Malaysian Prime Minister Anwar Ibrahim, in his capacity as Asean chair, to mediate the conflict, with the United States also playing a part in the process. Although Malaysia's intervention is in line with Asean's approach, Thaksin serves as an adviser to Mr Anwar, and with his complex relationship with Hun Sen, many believe Thaksin may have asked Anwar to step in, he said. The circumstances have led many to wonder if the border conflict is being used as a pretext to enable deal-making or interest sharing in the overlapping claims area (OCA) between the countries, an area believed to have rich fossil fuel deposits. "The government has done nothing. Such inaction has only fueled public suspicion. Lives are at stake, so people are beginning to question whether there are hidden interests behind the scenes, particularly involving the Shinawatra and Hun families," he said. Mr Olarn said Cambodia has outperformed Thailand on many fronts in the conflict, such as international diplomacy, and unity between the government and its military. Nonetheless, the conservative camp sees Thaksin and his networks as necessary, so they are likely to maintain their status for now. However, Mr Olarn expressed doubts about Pheu Thai's chances of winning the next elections though Ms Paetongtarn is likely to hold on to the prime minister post as long as there is no court order to remove her from office. Public backlash Prathuang Muang-on, a lecturer at Ubon Ratchathani University's political science faculty, said the border conflict has eroded confidence in the ruling party, pointing to open hostility toward Thaksin during his recent visit to Ubon Ratchathani to support civilians displaced by the clashes. While the lower Northeast is traditionally not a stronghold for Pheu Thai's constituency MPs, the party has performed well in the party-list system. But the border dispute is thought to cut into the party's support in Ubon Ratchathani and Si Sa Ket by at least 5%. Also, although Pheu Thai has a broad support base in the Northeast, the fallout from the border dispute has sparked criticism among northeastern voters, Mr Prathuang said. The leaked clip was the first factor, followed by the government's slow response in addressing the crisis and helping those affected. Combined with the military's proactive role in the conflict, the government is viewed negatively, he said. Even if Ms Paetongtarn steps down and Pheu Thai's prime ministerial candidate Chaikasem Nitisiri takes over, it is unlikely to make much of a difference. However, does not expect a dramatic change in Pheu Thai's overall seat count in the next elections, though the landslide victories in the constituency system which the party once enjoyed are now a thing of the past. It would also have a tough time winning party-list support. Court ruling is key Korkaew Pikulthong, a red-shirt leader and a Pheu Thai list-MP, admitted the government's image has suffered from poor communication but insisted the border tensions are unlikely to change the political landscape. "What really matters is the court's decision. If the court rules against Ms Paetongtarn, she is out, and the fallout could be immense. The party's third candidate, Mr Chaikasem, may not have much backing from the party MPs or coalition partners," he said. It was too soon to say whether the political turbulence marks a turning point even if Ms Paetongtarn is removed from office because the court decision would be based on evidence rather than an attempt to eliminate a political family. "It can't be concluded it is the end of Shinawatra family. It is one-time incident to be judged on its own merits. But if the prime minister is removed from office, it will shake public confidence," he said. He said that Thaksin still holds political clout and the former prime minister commands more public confidence than many other political figures. Asked whether the Shinawatra family's clout is fading, he said Pheu Thai has been on a downward trend since the last general election. He said stimulus schemes were not effective in reviving the economy because cash handouts were often not spent as intended. A digital wallet would allow more control and ensure the money is spent effectively, he added. Still, he said the focus now is on delivering results, especially on key economic initiatives and passing the budget bill which is not expected to face any hurdles. In the event the government is unable to continue, a House dissolution is the most likely path forward. While some analysts predict Pheu Thai could fall below 100 seats in the next elections, he said: "Let's not underestimate the party too soon." Full-blown crisis of faith Bhumjaithai Party deputy leader Siripong Angkasakulkiat said the government faces a deep lack of public confidence, and its actions, whether from Thaksin, Ms Paetongtarn or acting prime minister Phumtham Wechayachai, have done little to inspire confidence. He criticised the government's handling of the border conflict, saying it should have relied on formal, state-level diplomacy. Instead, the government's tone comes across as personal, which has stirred suspicions. Mr Siripong also pointed to a lack of coordination and strategic direction within the administration. Many officials appear hesitant to act if there are no clear instructions, possibly out of fear of making missteps or displeasing their superiors or the public. "They do what only they are told. When there are no clear orders, nothing gets done. The government communication has been one-sided, focusing only on positive news without offering a clear, comprehensive plan to address the crisis," he said. Mr Siripong said the Pheu Thai-led government has a chance to prove itself, but missed it. "What they now face is a full-blown crisis of public faith," he said. Asked whether the Shinawatra family still carries weight, he said Thailand risks heading down a path similar to Cambodia, where political power remains in a single family. On the government's fate, he said the ruling party's focus is on short-term populist projects, such as the 20-baht electric train fare policy, with which it hopes to score quick wins ahead of elections. However, it is unclear if this will work. Pheu Thai could slip to the third place and win fewer than 100 seats in the next polls. "The government's future hinges on two key events: the court's ruling on Ms Paetongtarn's case and the outcome of the next censure debate. Based on the current public mood, it's hard to see this administration lasting much longer," he said.
Bangkok Post
13 hours ago
- Bangkok Post
Trump sacks data chief over poor job numbers
WASHINGTON - US President Donald Trump has fired a top Labor Department official after the release of unexpectedly weak employment figures, accusing her without evidence of manipulating the figures to make his administration look bad. A White House official defended the move, saying there had been concerns for some time about the quality of economic data published by the Bureau of Labor Statistics (BLS). In a second surprise economic policy development, the door for Trump to make an imprint on a Federal Reserve — with which he clashes almost daily for not lowering interest rates — opened earlier than anticipated when Fed Governor Adriana Kugler unexpectedly announced her resignation on Friday. The two developments further rattled a stock market already reeling from Trump's latest barrage of tariff announcements and the weak jobs data. The benchmark S&P 500 Index sank 1.6% in its largest daily drop in more than two months. Trump accused Erika McEntarfer, appointed by former president Joe Biden, of faking the jobs numbers. There is no evidence to back Trump's claims of data manipulation by the BLS, which compiles the closely watched employment report as well as consumer and producer price data. A representative for the BLS did not respond to a request for comment. Friday began with BLS reporting the US economy created only 73,000 jobs in July, but more stunning were net downward revisions showing 258,000 fewer jobs had been created in May and June than previously reported. 'We need accurate Jobs Numbers. I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY. She will be replaced with someone much more competent and qualified,' Trump said in a post on his Truth Social network. 'Important numbers like this must be fair and accurate, they can't be manipulated for political purposes,' he said. He later added that the figures 'were RIGGED in order to make the Republicans, and ME, look bad'. US data agencies enjoy a global reputation for 'gold standard' statistics — one Trump may now be putting in danger — and economists of all stripes dismissed the idea of politically motivated manipulation. But a Trump administration official who requested anonymity said the White House has been dissatisfied with how large the revisions have been in the recent BLS data, and with lower survey responses. The problem started during the Covid pandemic and has not been addressed in the years since. 'There are these underlying problems that have been festering here for years now that have not been rectified,' the person said. 'The markets and companies and the government need accurate data, and we just weren't getting that.' The BLS has already reduced the sample collection for consumer price data as well as the producer price report, citing resource constraints. The government surveys about 121,000 businesses and government agencies, representing approximately 631,000 individual worksites for the employment report. The response rate has declined from 80.3% in October 2020 to about 67.1% in July, BLS data shows. A Reuters poll last month found 89 of 100 top policy experts had at least some worries about the quality of US economic data, with most also concerned that authorities are not addressing the issue urgently enough. In addition to the concerns over job market data, headcount reductions at BLS have resulted in it scaling back the scope of data collection for the Consumer Price Index, one of the most important gauges of US inflation, watched by investors and policymakers worldwide. Trump's move fed into concerns that politics may influence data collection and publication. 'Politicising economic statistics is a self-defeating act,' said Michael Madowitz, principal economist at the Roosevelt Institute. 'Credibility is far easier to lose than rebuild, and the credibility of America's economic data is the foundation on which we've built the strongest economy in the world. Blinding the public about the state of the economy has a long track record, and it never ends well.' Meanwhile, Kugler's surprise decision to leave the Fed at the end of next week presents Trump an earlier-than-expected opportunity to install a potential successor to Fed chair Jerome Powell on the central bank's board of governors. Trump has threatened to fire Powell repeatedly because the Fed chief has overseen a policymaking body that has not cut interest rates as Trump has demanded. Powell's term expires next May, although he could remain on the Fed board until Jan 31, 2028, if he chooses. Trump will now get to select a Fed governor to replace Kugler and finish out her term, which expires on Jan 31, 2026. A governor filling an unexpired term may then be reappointed to a full 14-year term. Some speculation has centred on the idea Trump might pick a potential future chair to fill that slot as a holding place. Leading candidates for the next Fed chair include Trump economic adviser Kevin Hassett, Treasury Secretary Scott Bessent, former Fed governor Kevin Warsh and Fed Governor Chris Waller, a Trump appointee who this week dissented with the central bank's decision to keep interest rates on hold, saying he preferred to start lowering them now.
Bangkok Post
17 hours ago
- Bangkok Post
India under more pressure to shun Russian oil
NEW DELHI — At least two vessels loaded with Russian oil bound for refiners in India have diverted to other destinations following new US sanctions, according to trade sources and data providers. The development comes even as Indian officials are reportedly saying they would keep purchasing oil from Russia despite the threat of steep penalties by US President Donald Trump. The New York Times quoted two senior Indian officials as saying there had been no change in policy, and that the government had 'not given any direction to oil companies' to cut back imports from Russia. Reuters could not immediately verify the report. The White House, India's Ministry of External Affairs and the Ministry of Petroleum and Natural Gas did not immediately respond to requests for comment. On July 14, Trump threatened 100% tariffs on countries that buy Russian oil unless Moscow reaches a major peace deal with Ukraine. Russia is the top supplier to India, responsible for about 35% of India's overall supplies. On Friday, Trump told reporters that he had heard that India would no longer be buying oil from Russia. Reuters had reported earlier that Indian state refiners had stopped buying Russian oil in the past week as discounts narrowed in July. The US Treasury Department this week imposed sanctions on more than 115 Iran-linked individuals, entities and ships, some of which are involved in transporting Russian oil. Three ships — the Aframaxes Tagor and Guanyin and the Suezmax Tassos — were scheduled to deliver Russian oil to Indian ports this month, trade sources said. All three vessels are under US sanctions. Tagor was bound for Chennai on India's east coast, while Guanyin and Tassos were headed to ports in western India, according to trade sources and Russian ports data. Tighter Western sanctions aimed at cutting Russia's oil revenue, seen as funding its war against Ukraine, have been increasingly hitting Russian oil supplies for India. Tagor is now heading to Dalian in China, while Tassos is diverting to Port Said in Egypt, the data showed. Guanyin remains on course to Sikka, a port used by the Indian conglomerate Reliance Industries and Bharat Petroleum Corp Ltd (BCPL). Indian Oil Corp, which was to receive the Tagor shipment, and BPCL did not respond to Reuters' emailed requests for comment. Zulu Shipping, linked to Panama-flagged Tassos and Tagor, and Guanyin-owner Silver Tetra Marine could not be reached for comments. Both companies are under US sanctions. A Reliance spokesperson said that 'neither of these two vessels, Guanyin and Tassos, is coming to us'. Reliance has previously purchased oil in Guanyin. Separately, two other vessels, Achilles and Elyte, loaded with Russian oil, were preparing to discharge Russian Urals crude for Reliance, according to data from LSEG (London Stock Exchange Group). Both these vessels are sanctioned by Britain and the European Union. India has condemned the EU sanctions.
