Latest news with #Malays
Focus Malaysia
12 hours ago
- Business
- Focus Malaysia
Balance of trade between nations need to reflect parity and equality
ONE of the reasons cited by US President Donald Trump in increasing trade tariffs with Malaysia is that the balance of trade has been in Malaysia's favour for many years, and that the Malaysian government has not seriously addressed the problem. Trump had expressed hopes that higher tariffs could redress the situation and expects Malaysia to purchase a more wider range of American goods and products. Many nations too have lopsided balance of trade with the US and this is one of the reasons for the much-feared Trump's tariffs worldwide which will begin to be implemented from Aug 1. Numerous countries have taken advantage of the large unrestricted open US market to increase exports exponentially but buy back less in imports leading to an unfavourable balance of trade. The US has lost out to many countries in the trade of agricultural and manufactured goods as well as services. This is the reason why the US is now the world's biggest debtor nation. Many American multi-national have also added to the problems by opening new manufacturing centres outside the US to take advantage of lower labour costs and other incentives and exporting their products to the US for higher profits. This has led to the famous 'rust belt', a vast number of US factories that had been shuttered down due to economic changes. This became a major socio-economic issue during the presidential elections. The range of products and services the US depends on worldwide especially from the European Union (EU) and Asean countries has increased manyfold over the last few decade and is straining the US economy with the huge range imports which are not matched with imports by these countries. This has been cited as one of the reasons for the much talked about decline of the US as a superpower. Trump is imposing punitive tariffs on nation he feels are restricting US imports through restrictions, regulations and import substitution. The entry of China as a big time trading nation has upset the balance of trade internationally. China's economy of scale has led to cheaper and competitive prices and many nations have lost their erstwhile monopoly. Previously, Malaysia trade with the US was more balanced as Malaysia used to buy a large range of manufactured products and other goods and services from the US. However, the situation has drastically changed when China began flooding its products in Malaysia. This led to Malaysia buying less from not only the US but also the EU, among others. Malaysia often lauds its favourable trade balance as an economic achievement and advantage but does not take into account the disadvantage it causes to others. For a healthy trading relationship there should not be a very wide gulf or deficit between trading partners. Another country with a perennially lopsided balance of trade with Malaysia is India. India has had an unfavourable balance of trade with Malaysia for decades. India is Malaysia's largest importer of palm oil and is one of the main countries Malaysia considers to sell off any glut arising in palm oil. This enables palm oil prices to be kept high and well above production costs. The palm oil sector has been one of the most profitable and Malaysia reaps billions of ringgit due to high prices fuelled by large scale imports by India. In fact whenever palm oil exporters get wind of prospective large scale purchase of palm oil from India due to domestic vegetable oil shortage or demand for festivals many of these exporters and speculators jack up the prices. The situation became so exploitative more than a decade ago when India decided to have a more stable palm oil pricing with a government to government arrangement with Indonesia. Needless to say Malaysia-India trade ties need to become more balanced and fair to both sides. Malaysia needs to import more from India considering the presently wide range of manufactured as well as tradition products from India. Indian investors and businesses need to reciprocate by increasing their economic activities in Malaysia and their involvement in the IT and related sectors is one way to improve the balance of trade. The Malaysian Indian community should look into good investment opportunities in Tamil Nadu as the government is providing various incentives for export-related manufacturing for small and medium enterprises (SMEs) and larger firms. Alternatively, joint ventures between India and Malaysia need to be increased .This will also help redress the gap between imports and exports. Governments worldwide need to ensure that the balance of trade is fair and amicable for both sides and ensure that exploitative restrictions, over-regulation and domestic discrimination as well as unfair practices do not lead to countries reacting with higher tariffs and taxes. Trump's tariffs show how the US now unilaterally reacts to stop the disadvantages to the US economy. He has shown the way as to how to redress unfavourable trade balances with tariffs and other restrictions to save a country's economy. Tariffs will be a feature of the future with more nations feeling they are being exploited through unfair and discriminatory trade practices. Suffice to say, the days of unrestricted open markets are officially over. ‒ July 22, 2025 V. Thomas is a Focus Malaysia viewer. The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia. Main image: AFP/Andrew Hanik
Malaysiakini
18 hours ago
- Business
- Malaysiakini
Tariff talks progressing, M'sia reluctant on some areas
Despite ongoing negotiations to reduce tariff pressures from the US, Putrajaya is reluctant to meet certain demands made by Washington. 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.
Malaysiakini
19 hours ago
- Business
- Malaysiakini
Report: Tariff talks progressing, M'sia reluctant on some areas
Despite ongoing negotiations to reduce tariff pressures from the US, Putrajaya is reluctant to meet certain demands made by Washington. 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.
Focus Malaysia
21 hours ago
- Politics
- Focus Malaysia
Ramasamy defends Bersatu, takes a jibe at Puad Zarkashi's fear of UMNO losing grounds among Malays
UMNO supreme council member Datuk Dr Puad Zarkashi may soon earn the image of a politician who cannot differentiate between outright lies and facts. In his recent Facebook posting, he ridiculed Bersatu for calling a meeting of political parties not aligned with the government in an attempt to forge a united opposition front against the Madani government. He not only mocked Bersatu for inviting leaders of what he termed 'mosquito' political parties but also questioned the participation of Urimai's chairman Prof Ramasamy Palanisami, a former DAP member and former Penang deputy chief minister II, and P. Waytha Moorthy, the president of MAP (Malaysian Advancement Party) and a former HINDRAF (Hindu Action Front) leader. In his usual characteristic UMNO fashion, Puad falsely claimed that PAS did not participate in the gathering because the party opposed these Indian-based political parties due to their support for ICERD (International Convention on the Elimination of all forms of Racism) – an issue PAS has historically rejected. The Johor state assembly speaker fails miserably to realise that Urimai is not yet a registered political party and was only formed two years ago. Come November 2025, Urimai – or the United Rights of the Malaysian Party – will mark its two-year anniversary. Urimai was refused registration likely due to its vocal stance as part of the opposition front. As for MAP's supposed support of ICERD, this is a matter best clarified by its president Waytha Moorthy. Fear of UMNO losing ground Puad may be a gung-ho UMNO leader but he conveniently ignores his own party's questionable alliance with DAP – a party once considered UMNO's sworn political enemy. The allure of political power and positions has pushed leaders like Puad to overlook past hostilities, embracing instead what is now a marriage of convenience with DAP. Rather than commenting on PAS's absence from Bersatu's recent meeting, wouldn't it be wiser for Puad to justify UMNO's alliance with DAP – a partnership still widely opposed by the party's Malay grassroots? If PAS is truly against Urimai and MAP, then why did the party previously participate in the 'Secretariat for the Defence of the Judiciary' alongside leaders Ramasamy and Waytha Moorthy? Puad's sudden interest in Bersatu's united front initiative signals a growing fear that UMNO is steadily losing ground among the Malays. UMNO's obsession with the royal addendum enabling house arrest for incarcerated former premier Datuk Seri Najib Razak only reflects the party's internal dilemma. Puad, acting as UMNO's unofficial loudspeaker, is merely trying to project political relevance amid rising discontent with the party among Malay voters. The house arrest arrangement for Najib may provide UMNO with temporary leverage but it does little to resolve its credibility crisis. In the meantime, Puad would do well to refrain from relying on lies and half-truths in his attempts to re-establish UMNO's political standing. – July 22, 2025 Former DAP stalwart and Penang chief minister II Prof Ramasamy Palanisamy is chairman of the United Rights of Malaysian Party (Urimai) interim council. The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia. Main image credit: Malay Mail
Focus Malaysia
2 days ago
- Business
- Focus Malaysia
Ramasamy: What's PMX give-away as Bumi policy stands in the way of Malaysia's US tariff negotiation?
I AM not sure whether Prime Minister Datuk Seri Anwar Ibrahim is as serious as he sounds in defending the preferential policies for the Bumiputera community in the country. The US imposition of 25% tariffs (from 24% previously) on Malaysian exports seems invariably related to the imposition of 30% Bumiputera equity on foreign firms, the nature of the halal industry – and not least – the prevention of foreign equity in the gas and petroleum industry. While Anwar talks tough about not diluting the Bumiputera stake in the country – calling it the 'red lines' – the government at the same time wants to engage the US amicably and diplomatically to reduce tariffs. I was informed by some Malaysian former diplomats that Anwar has the peculiar habit of talking tough and using non-compromising language when addressing the local audience, particularly the Malay segment of the population. To the Malays, he wants to be seen as a champion of their political and economic interests, especially through the manifestation of pro-Bumiputera policies. In other words, Anwar – despite his awareness of what is wrong with some of the Bumiputera policies – is not prepared to confront them or to come up with better national policies that will benefit all segments of the population. It doesn't take rocket science to know that the pro-Bumiputera policies have essentially benefitted the Malay elite as opposed to the man-0n-the-street Malays in the administrative and political sectors. Limited bargaining power By focusing on political expediency and survival, Anwar lacks the courage and wisdom to confront the political, social and economic realities in the country. He is so afraid that any attempt to critically examine the special privileges of the Bumiputera might be construed as a zero-sum game – the loss of the Bumiputera and the gain of the economically vibrant non-Malays in the country. Whether Anwar is going to tamper with the privileges of the Bumiputera must not be judged by his political rhetoric but rather by what Malaysia is going to give away in exchange for reduced tariffs. I would certainly think that there is a serious mismatch between what is said by Anwar and what Malaysia is going to concede to the US in the tariff talks. Anwar should not behave as though he is anti-US – he is far from it. He certainly lacks the courage and determination of twice former Prime Minister Tun Dr Mahathir Mohamad. Just remember how Dr Mahathir opposed the IMF (International Monetary Fund) policies during the country's financial crisis in the 1990s. While Anwar was prepared to go along with the dictates of the IMF, Dr Mahathir sought to confront them. It is the same Anwar who now wants to take a tough stand in protecting the rights of Bumiputera but in the on-going tariff negotiations with the US, he might be much more subdued with the potential to negatively affect the country's economy. – July 21, 2025 Former DAP stalwart and Penang chief minister II Prof Ramasamy Palanisamy is chairman of the United Rights of Malaysian Party (Urimai) interim council. The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia. Main image credit: Anwar Ibrahim/Facebook
