Latest news with #InvestShariahConference2025
New Straits Times
07-08-2025
- Business
- New Straits Times
Less punitive than feared, says expert on impact of US' planned tariff on Malaysia's semiconductor exports
KUALA LUMPUR: Malaysia's risk exposure to the United States' proposed 100 per cent tariff on semiconductors may be lower than feared, said CGS International head of research Jeremy Goh. Goh said the bulk of the country's chip exports come from US-based companies, which could be exempted from the measure. "Roughly two-thirds of Malaysia's semiconductors come from US-based companies. "There's quite a high chance that these US-based companies will of course commit to expand in American soil to avert these semiconductor tariffs. "It's still a very developing situation, but I don't think it's as scary and as punitive as that 100 per cent tariff deadline sounds," he said during the Economic & Market Outlook panel session at the Invest Shariah Conference 2025. While the proposed tariff has raised concerns, Goh believes the actual impact could be less severe than the headline number suggests, especially given the exemption criteria outlined by US President Donald Trump. Trump planned to impose a tariff of 100 per cent on semiconductor chips imported from countries not producing in the US or planning to do so. He said the new tariff rate would apply to all chips and semiconductors coming into the US but would not apply to companies that had made a commitment to manufacture in the US or were in the process of doing so. "From Trump's statements, he did say that if the semiconductors are coming from US or US-based companies… "These companies have committed to expand in US soil, or are already in the midst of expanding in, thus they would be exempted," he said. Goh added that Malaysia's direct market exposure to the US is minimal, despite the country being a major export destination. "Thirty per cent of our exports goes to US, our second-largest export destination, but at the stock market level, that exposure is much lower. "We found that in terms of our coverage universe, only 2.4 per cent of the aggregate revenue is derived from US "As for the FBM KLCI, the 30-key stock index, only about 0.5 per cent of its revenue comes from the US. "So the direct US exposure of our local stock market is relatively much more muted compared to the overall economy. That's the second so-called saving risk that we have," he said. With ongoing efforts by the Malaysian government to seek clarification from the United States Trade Representative (USTR), Goh believes the outlook remains manageable. Meanwhile, CGS International chief economist Nazmi Idrus said the tariff, if implemented, could spell trouble for Malaysia's export-reliant economy. "Half of our products are actually being sold in the US and there will be more impact on the Malaysian economy because we are quite reliant on US products," he said. He warned that the move could further fracture the global trade landscape, accelerating shifts in supply chains and trade flows. "You're likely to see some changes in the global supply chain going forward. It's probably going to benefit the US more than other countries," he said. According to Nazmi, the US currently enjoys tariff advantages in many overseas markets due to relatively lower import duties. This could push more countries to favour American goods at the expense of regional trading partners. "So what happened now is that because we are still lower our tariff levels in the US, US products have more advantage in other countries. "So probably a lot of countries will start to import a lot more of US products and a lot less on their national trading partners," he added. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Malaysia had sought clarification from the US over thecproposed 100 per cent tariff on imported semiconductor chips. He cautioned that such move could adversely affect one of the country's most critical export sectors. He said the government had contacted both the US Trade Representative and the Department of Commerce this morning to obtain an official statement on the matter.
Malaysian Reserve
07-08-2025
- Business
- Malaysian Reserve
Bursa Malaysia CEO: Islamic finance must evolve to stay competitive
KUALA LUMPUR — The growth of Islamic finance will be driven by greater connectivity across asset classes, geographies and generations – and not just by compliance – as a generational shift in investor demographics brings in younger, digital-native and value-conscious investors. Bursa Malaysia Bhd chief executive officer Datuk Fad'l Mohamed (picture) said today's investors are drawn to offerings that are digital-first, value-aligned and exposed to emerging digital asset classes, including tokenised instruments. 'These shifts call on all of us – exchanges, regulators, asset managers and scholars – to work together to ensure that Islamic finance stays relevant and competitive, not just in what it represents, but in how it evolves to meet the changing needs of the market and investors,' he said in his welcoming remark at the Invest Shariah Conference 2025 today. CGS International Securities Malaysia and Bursa Malaysia co-hosted the conference themed 'Innovating Islamic Finance: Unlocking Global Investment Potential'. Fad'l also added that Malaysia's Islamic capital market remains among the most developed globally, anchored by robust regulation, a credible shariah framework and a diverse base of issuers and investors. 'As at end-April 2025, Malaysia's Islamic capital market was valued at RM2.56 trillion, representing 63 per cent of the total domestic capital market size of RM4.04 trillion. He also said shariah market capitalisation stood at RM1.3 trillion or 66.1 per cent of the stock exchange's market capitalisation of RM1.9 trillion as at end-July. Fad'l also elaborated that shariah-compliant average daily trading value (ADV) reached RM1.6 billion or 64.4 per cent of the overall ADV of RM 2.4 billion, and 860, or 81 per cent of 1,065 Bursa Malaysia-listed companies were shariah-compliant. Global Islamic finance assets surpassed US$5 trillion last year, a 12 per cent rise from 2023, and a 43 per cent increase since 2020. By 2028, the industry is projected to reach US$7.5 trillion, reflecting the rising demand for shariah-compliant finance across markets and asset classes. CGS Malaysia CEO Azizah Mohd Yatim said Malaysia has an established, internationally recognised framework and end-to-end ecosystem for the Islamic capital market, with depth and breadth of shariah products, assets and instruments to 'export' its products and solutions regionally and globally. 'Islamic capital market and shariah instruments provide a fundamental, value-based approach that investors and businesses can trust. This is especially important in today's environment, and their growing demand is proof of the proposition,' she said. 'CGS Malaysia has become the first broker in Malaysia to launch the Islamic Equity Linked Investment Notes and Islamic Autocallable Equity Structured Investment Notes, structured products for sophisticated investors. 'In the coming months, we will be rolling out Islamic repurchase agreement products in Malaysia and Environmental, Sustainable and Governance (ESG) Margin Financing-i in Singapore and Indonesia,' she added. Globally, 80 per cent of the Islamic finance industry assets remain concentrated in five markets: Iran, Saudi Arabia, Malaysia, the United Arab Emirates and Kuwait. Meanwhile, the full-day conference featured panel discussions and fireside chats covering the strengthening of capital flows between Asia and the Middle East, the rise of private equity and venture capital in Islamic capital markets, and the role of digital transformation in reshaping shariah-compliant investment products. Speakers also explored how the Islamic capital market can serve as a driver of inclusive growth, highlighting emerging opportunities in fintech, multi-asset investments, ESG integration, and sukuk issuance. — BERNAMA
