Latest news with #SpecialEconomicZone
The Sun
5 hours ago
- Business
- The Sun
US tariffs – Short-term shock, long-term opportunities for Asean real estate industry
KUALA LUMPUR: While the US reciprocal tariffs announced on April 2 have unsettled equity markets and export-driven sectors, property leaders believe the disruption could accelerate the adoption of digital technologies, sustainable construction practices and regional trade integration within Asean's real estate landscape. During a panel discussion titled 'Industry Countermeasures: Absorbing the Recent US Tariff Shockwaves' at the Asean Real Estate Conference and the Architecture, Interior Design and Building Exhibition 2025, three prominent figures – Real Estate and Housing Developers' Association (Rehda) president Datuk Ho Han Sang, PropertyGuru Group's head of real estate intelligence Dr Lee Nai Jia and United Overseas Bank senior Asean economist Enrico Tanuwidjaja – said that while the new US tariffs – which are scheduled to go into effect on Aug 1 – bring short-term uncertainty, they also present potential long-term opportunities for the industry. Ho said Malaysian developers are bracing for softer demand in industrial, commercial and high-end residential segments as exporters negotiate who will absorb the higher costs. 'Profit margins will be squeezed as importers and exporters split the burden,' he told the audience. 'With higher prices, purchase volumes will drop and investors will be more cautious. Slower sales mean cash flow problems, and cash flow is reality; without it, there is no oxygen.' Ho noted that while most construction inputs are locally sourced, imported steel, aluminium and glass may see price pressure if the ringgit weakens. The first sectors to feel the pinch, he said, will be export-driven industries scaling back factory expansions, reducing office space needs, and curbing retail growth. Yet he also flagged bright spots. 'Tariffs on Chinese goods could redirect manufacturing to Asean, and a weaker ringgit may attract buyers from Singapore, Hong Kong and Taiwan into projects like Penang Silicon Island or the Johor‑Singapore Special Economic Zone.' Lee observed similar patterns across Asean. Using PropertyGuru's platform data, he described a three‑stage reaction: initial shock, quick normalisation and preference recalibration. 'After the announcement, views on listings in Singapore plunged, while Malaysia and Vietnam saw smaller dips,' he said. 'But people quickly remembered that housing is a long‑term need. What changed is their behaviour where buyers are gravitating towards more affordable, value‑driven homes.' He highlighted Singapore's Linton Woods project, which sold 94% of units despite tariffs, thanks to its proximity to transport and employment hubs. 'Integrated developments are resilient,' Lee said. 'The key is offering value and convenience.' He added that confidence in governance, stemming from Vietnam's policy reforms to Malaysia's interest rate cuts, continues to underpin the region's housing markets. From a macro lens, Tanuwidjaja said the tariffs underline Asean's need to boost internal trade and reduce dependence on external markets. 'Intra‑Asean trade is only 17%, compared to over 40% in the EU,' he said. 'We need to integrate, use local currency settlements, harmonise regulations and build supply chains that loop within the region.' While describing Asean as 'resilient', he warned that volatility will persist throughout the current US administration: 'Businesses must plan for turbulence, not a quick fix. The next midterm election in 2026 is the next real pivot.' He also urged governments and developers to prepare for technological disruption. 'AI will transform customer service, marketing and operations. We must retrain workers for higher‑skill roles like architecture, design thinking, project integration, because low‑skill roles are most at risk.' All three panellists stressed innovation as a pathway through the turbulence. Ho highlighted Integrated Digital Delivery (IDD), a platform that digitally unites 180 industry stakeholders to cut errors and speed approvals, as a game‑changer already deployed in Singapore. 'IDD minimises waste and aligns everyone from engineers to regulators,' he said. 'Speedier approvals, like Penang's recent 36‑day affordable housing clearance, reduce costs and help projects move despite headwinds.' Green technology also surfaced as a competitive advantage. Lee pointed to Vietnam's success in renewable energy during the first trade war. 'This is our chance to lead with climate‑sensitive design and ESG frameworks tailored to Southeast Asia's climate,' he said. Looking beyond domestic markets, Ho urged Malaysian developers to revive their overseas promotion campaigns, targeting buyers from Hong Kong, China, and Singapore. 'Our products are internationally recognised and competitively priced by Asean standards,' he said. 'With stable governance and award‑winning townships, Malaysia can stand out.' Tanuwidjaja echoed the sentiment: 'The higher tide will lift all boats but only if Asean rows together.' While uncertainties remain, the panel's tone shifted from caution to resolve. The tariffs, they argued, could catalyse Asean's next phase of growth by forcing integration, accelerating digital tools and prioritising sustainability. 'If you don't change, you'll be changed,' Ho said. 'This is the moment for our industry to reinvent and emerge stronger.'
RNZ News
16 hours ago
- Business
- RNZ News
Solomon Islands PM's former chief of staff returns to represent firm that led to his firing
Solomon Islands Minister Jamie Vokia and (former) Chief of Staff Mack Faddean Aoraunisaka, right, pictured with SI Group Chairman Phan Nhat Minh and CEO Le Thi Huy Binh. Photo: Hand-out A senior Solomon Islands government staffer who was sacked by Prime Minister Jeremiah Manele earlier this month is back - this time representing the very company whose dealings got him fired in the first place. On 3 July, RNZ Pacific reported that Manele dismissed his chief of staff, Mack Faddean Aoraunisaka, after he had arranged a deal between Vietnamese firms concerning a shrimp farming project. The deal between the consulting firms SI Group and Growmax, and Commerce Minister Jaimie Vokia, was signed without Manele's knowledge. It would allow the establishment of a Special Economic Zone (SEZ), which would give SI Group and its client Growmax (a fisheries company), special commercial privileges. The three parties signed the controversial memorandum of understanding, granting the two firms tax exemptions and various other privileges within the Solomon Islands. When Manele found out, he moved Vokia to a new ministerial portfolio and fired Aoraunisaka, while the Foreign Investment Division (FID) barred SI Group from the country. The FID said that "[SI Group's] presence in the Solomon Islands carrying out commercial activity without foreign investment approval or company incorporation violates the laws of this country." However, Solomon Business Magazine reported that SI Group and Growmax met with Fisheries Minister Bradley Tovosia on 15 July. The meeting was reportedly followed by consultations with officials from the Ministry's Aquaculture Division. In a statement, Aoraunisaka, as the "local authorised representative for SI Group JSC", decried negative attention toward his new employers. "It is unfortunate the manner in which SI has been treated," he said. "People must realise that such treatment not only damages the business reputation of a credible international company but also undermines Solomon Islands' status as a welcoming and business-friendly destination for foreign investment. "Local representatives of SI [Group] are currently working closely with the Foreign Investment Division to rectify the situation and ensure that the process is resolved amicably and efficiently." The statement included a quote from Tovosia in support of the two firms, but the Prime Minister's office could not confirm its veracity. SI Group was the sponsor of a concert on 12 July starring dancehall reggae artist Busy Signal, which Aoraunisaka called a "success". The show was set up to raise funds for the Kadere Party, of which Minister Vokia is the leader. Immediately afterward, in a news conference with a SI Group senior director by his side, party executive member Martin Housanau defended SI Group's presence in the country "The event that is happening now is a non-commissioned activity, and under the laws it doesn't benefit [the SI Group] in any convening [the event]." Aoraunisaka told Solomons Business Magazine that the over 50,000 people came to the concert, showing that SI Group has popular support. "Unfortunately, there remains a loud but tiny group of individuals-mostly hiding behind fake profiles and bitter narratives on social media-who continue to spew negativity against anything and everything good." "We need positive vibration to move forward. Bad vibe is bad. Good vibe is what the soul, the land, and the nation wants. This is a positive vibration construct. And SI Group JSC is a vessel of that positivity." RNZ Pacific has contacted the Ministry of Fisheries for comment.
The National
2 days ago
- Business
- The National
Heritage and hardware: My trip to Shenzhen surprises and charms in equal measure
Some great cities can overwhelm you with centuries of architecture and culture, but Shenzhen in China offers something entirely different: a chance to experience a land in transformation. When the Chinese government declared the city as the country's first Special Economic Zone in 1980, farmlands gave way to industrial corridors as companies including national behemoths Huawei and Tencent – both founded in the city – thrived under the favourable economic conditions. Arriving in Shenzhen The shedding of rural origins is visible from the air, as my Emirates flight descends towards the southern Chinese city – completing a near-eight-hour journey from Dubai across the Arabian Peninsula, the Indian subcontinent and mainland Southeast Asia. The approach into Shenzhen Bao'an International Airport reveals a city of planned zones, punctuated by green spaces such as the expansive Lianhuashan Park and Shenzhen Bay Park. Along the southern edge are the deep blue waters of the South China Sea stretching towards Hong Kong and Macau. The airport itself, which is reportedly set to add a third runway this year, is understated. Clearing customs is relatively swift, and within half an hour of landing, I'm moving through a grand hall filled with filtered natural light. The terminal is wide, open – said to resemble a manta ray – and free of extravagant displays. It provides an early glimpse of a city built for functionality and logistics rather than spectacle. The 40-minute drive down the coastal Guangshen Expressway towards the city centre reveals more of the evolution. Land once made up of ricefields and marshes – threaded through the irrigation channels that gave Shenzhen, meaning 'deep drains', its name – is now occupied by dense districts that are home to more than 17 million people. I spot the outlines of Longgang, a major manufacturing hub of electronics such as smartphones and power supply units, and Futian, the city's administrative and commercial core. The glimmering outlines of China Resources Tower, shaped like a bamboo shoot, and the twin-glass Tencent Seafront Towers also rise in the distance as we near the slick Conrad Shenzhen hotel in the Nanshan district. Tech walk in Huaqiangbei One of the nine districts that make up Shenzhen, Nanshan is a quiet area, known for its tech campuses, public parks and universities. It provides a needed charge before I am thrust into the colour and frenzy of Huaqiangbei – the world's largest electronics market and, for many entrepreneurs, the main reason to visit Shenzhen. The market's scale hits me first. The strip may be only 800 metres long, but it's flanked by multistorey buildings packed with nearly 40,000 vendors. Most of the buildings don't carry signs stating any specific wares or brands. You simply step in and get enveloped by endless booths – a sea of motherboards, loose cables, LED strips, soldering kits, phone cases and even neck massagers. Behind booths, shopkeepers invite you to check the merchandise while keyboard and drum beats reverberate as customers test digital music pads nearby. Though the market invites wandering, most people come here to get things done, whether it's seeking the latest podcast microphones, drones or mobile camera stands. Deals are made through translation apps, and haggling is expected. Payments happen in cash or via the easy-to-use Alipay app. I leave with a bundle of phone cords, a battery charger, two one-terabyte USB drives and a white eye massager shaped like a sleeping mask, all for 200 yuan (Dh102). While Huaqiangbei feels initially chaotic, its sheer purposefulness is another reflection of Shenzhen as a city where things get done without fuss or ceremony. Balance of science and culture The buzz dims as I take a 40-minute taxi across Guangming district to reach the Shenzhen Science and Technology Museum. Opened in May, the museum stands as a sign of Shenzhen's planned shift from manufacturing hub to tech powerhouse. That ambition crystallises in the building itself. The sleek glass and steel facade, designed by Zaha Hadid Architects, resembles a spacecraft. The atrium, bound by curved silver walls and a large Chinese flag in the centre, feels like an airport terminal. Hundreds of students and families move towards kiosks selling entry tickets, priced at 50 yuan for adults. Inside, the museum's purpose is clear: spark a love of science early. Exhibitions span four permanent halls and lean heavily on gamification. In the robotics and sustainability zones, children bang on taiko drums. The harder they strike, the more virtual energy is generated. A screen tracks an animated character racing towards a finish line, making learning a fun competition between friends. Nearby, robotic arms assemble coffee orders, while humanoid robots greet visitors. Other exhibits envision futures where technology works alongside humans, from robot surgeons to automated valet parking. The messaging aims to inspire excitement at the opportunities technology offers up, rather than a fear of change. But for all of its positioning as a tech and manufacturing hub, Shenzhen also maintains its respect for the past. The city's own heritage is preserved and celebrated at Shenzhen Museum in Futian District and, more vividly, at the Splendid China Folk Culture Village. Located about 18km from the city centre, the sprawling 30-hectare site is divided into more than 20 sections, each replicating ethnic villages of China's officially recognised minority communities. You can traverse wooden stilt homes of the Dong people native to Guizhou Province, marvel at the intricate carvings of the Miao community and witness the swirling fan dance of the Dai people from Yunnan Province. The village is vast, and the highlight of my stay was renting a buggy, for 50 yuan an hour, to explore the site at a languid pace. Cruising through its sections, I felt like I was inside a picture book, unfolding as I passed mini replicas of the Great Wall and a similarly scaled-down Forbidden City. Lovingly preserved and charmingly quaint, the village should take up a priority spot on any Shenzhen itinerary. Artistic alleyways A 25-minute taxi ride away can have you experiencing the creative side of Shenzhen. The entrance to Dafen Oil Painting Village is a nondescript alley off a busy road, but once inside, the noise recedes as you arrive at a central courtyard from which narrow alleyways fan out to hundreds of tiny studios and galleries. There are painters at work in almost every doorway. From the outside, some spaces appear no bigger than shoeboxes, others are more elaborate. I see a woman painting porcelain dolls beside a man copying Vincent van Gogh's Starry Night, seemingly from memory. Other artists recreate everything from traditional Chinese landscapes to vibrant video game characters such as Sonic the Hedgehog. Once known for its mass production of cheap knock-offs of western masterpieces, the village's reputation has changed over the past decade with galleries such as Sunrise Art Centre and TNT Contemporary Art Space now showcasing original work by local and regional artists. Yes, you can haggle and take an accurate recreation home, but you can also pause and soak in the atmosphere. Get lost in the alleyways and find art you didn't know you needed, or sit in one of the courtyard cafes where students gather and elderly men play chess. Unlike Huaqiangbei, there's no commercial urgency here. The fact that art is being made is all that matters. Halal dining in Shenzhen My final stop is a quiet dinner inside Muslim Hotel Restaurant, a modest but enduring presence in Shenzhen's city centre. A TripAdvisor find, its name appeared on top lists of halal restaurants to try – also including Turkish-inspired Mevlana and Muslim Noodles Restaurant – with the added distinction that it's been operating for more than 40 years. The menu reflects the culinary heritage of China's north-western Muslim communities, but adapted to the tastes of the southern port city. I order sauteed mushroom and spinach, beef baked dumplings and spicy chicken noodles for 204 yuan. It's a homely and hearty meal that underscores the cohesion of Shenzhen, where tech markets and futuristic museums seamlessly sit alongside historical villages and culinary stalwarts. It all forms part of a larger story in a city whose potential is still being written.
The Sun
2 days ago
- Business
- The Sun
Domestic demand will remain key driver of Malaysia's economic growth: Amro
SINGAPORE: Malaysia's economy continues to demonstrate resilience in 2025, underpinned by strong domestic demand, robust investment activity and favourable labour market conditions, despite pressures from global trade tensions and policy uncertainty. Asean+3 Macroeconomic Research Office (Amro) chief economist Dong He stated that if the United States' reciprocal tariffs take effect from Aug 1 at the current rate of 25%, Malaysia's gross domestic product growth could fall from 5.1% in 2024 to 4.2% in 2025, and further to 3.8% in 2026. 'This reflects the direct impact on Malaysia's exports to the US, the indirect effects through intermediate goods sent to other countries destined for the US, and the broader slowdown in global trade growth. Nonetheless, domestic demand will remain the key driver of growth,' he told Bernama. He noted that front-loaded exports had supported economic momentum earlier in the year. At the same time, key sectors such as information and communication technology and manufacturing remain active, bolstered by data centre investments and industrial diversification. However, the outlook for the second half of the year and beyond remains clouded by external headwinds, particularly the outcome of ongoing US trade negotiations. To maintain momentum, He said Malaysia's policy priorities should include sustained diplomatic engagement with the US on trade issues, diversification of export markets, and greater emphasis on the services sector, which is typically less exposed to protectionist measures. He added that accelerating structural reforms remains essential, especially through the implementation of the New Industrial Master Plan 2030 and the National Energy Transition Roadmap. 'Regionally, the Johor-Singapore Special Economic Zone (JS-SEZ) could emerge as a strategic advantage, catalysing cross-border investment and innovation. 'US tariffs could enhance the JS-SEZ's appeal, particularly if Singapore faces much lower tariffs than countries like Vietnam and Mexico,' He said. He added that the strong commitment to collaboration demonstrated by both the Singaporean and Malaysian governments boosts confidence in the zone's prospects, particularly in a volatile global environment shaped by rising protectionism. 'Together, the zone's economic value proposition and political backing can attract foreign investors looking to establish a base in Asean,' He said. He noted that for the JS-SEZ to succeed, several challenges must be tackled, including cross-border movement of people and goods, infrastructure in southern Johor, wage gaps, labour shortages, and policy continuity, among others. 'If successful, the JS-SEZ can serve as a blueprint for future regional integration initiatives. For example, it could inspire similar cross-border economic zones between Thailand and Laos or Vietnam and Cambodia,' he said. – Bernama
New Straits Times
3 days ago
- Business
- New Straits Times
Malaysia's economy stays resilient in 2025 amid global uncertainty
SINGAPORE: Malaysia's economy continues to demonstrate resilience in 2025, underpinned by strong domestic demand, robust investment activity, and favourable labour market conditions, despite pressures from global trade tensions and policy uncertainty. Asean+3 Macroeconomic Research Office (AMRO) chief economist Dong He stated that if the United States' reciprocal tariffs take effect from August 1 at the current rate of 25 per cent, Malaysia's GDP growth could fall from 5.1 per cent in 2024 to 4.2 per cent in 2025, and further to 3.8 per cent in 2026. "This reflects the direct impact on Malaysia's exports to the US, the indirect effects through intermediate goods sent to other countries destined for the US, and the broader slowdown in global trade growth. Nonetheless, domestic demand will remain the key driver of growth," he told Bernama. He noted that front-loaded exports had supported economic momentum earlier in the year. At the same time, key sectors such as information and communication technology and manufacturing remain active, bolstered by data centre investments and industrial diversification. However, the outlook for the second half of the year and beyond remains clouded by external headwinds, particularly the outcome of ongoing US trade negotiations. To maintain momentum, He said Malaysia's policy priorities should include sustained diplomatic engagement with the US on trade issues, diversification of export markets, and greater emphasis on the services sector, which is typically less exposed to protectionist measures. He added that accelerating structural reforms remains essential, especially through the implementation of the New Industrial Master Plan 2030 and the National Energy Transition Roadmap. "Regionally, the Johor-Singapore Special Economic Zone (JS-SEZ) could emerge as a strategic advantage, catalysing cross-border investment and innovation. "US tariffs could enhance the JS-SEZ's appeal, particularly if Singapore faces much lower tariffs than countries like Vietnam and Mexico," he said. He added that the strong commitment to collaboration demonstrated by both the Singaporean and Malaysian governments boosts confidence in the zone's prospects, particularly in a volatile global environment shaped by rising protectionism. "Together, the zone's economic value proposition and political backing can attract foreign investors looking to establish a base in Asean," he said. He noted that for the JS-SEZ to succeed, several challenges must be tackled, including cross-border movement of people and goods, infrastructure in southern Johor, wage gaps, labour shortages, and policy continuity, among others. "If successful, the JS-SEZ can serve as a blueprint for future regional integration initiatives. For example, it could inspire similar cross-border economic zones between Thailand and Laos or Vietnam and Cambodia," he said.
