Latest news with #US-ASEAN
The Sun
4 days ago
- Business
- The Sun
Penang stays resilient, innovative amid world trade tensions
GEORGE TOWN: Penang has reaffirmed its commitment to resilience, innovation, and maintaining global competitiveness amid world's trading environment which remains tense, said Chief Minister Chow Kon Yeow. He said during the Malaysian International Chamber of Commerce and Industry (MICCI) Northern Annual Luncheon Dialogue 2025 here today that Penang remains open for business, innovation and collaboration because the state has always been about resilience. 'From our trading port roots to our rise as a global electronics and innovation hub, we have learned to pivot when the world shifts and this moment is no different. Our economy is tightly integrated into global supply chains whether it's semiconductors, electronics, precision tools or medical devices. 'So when shocks happen, they are felt in Bayan Lepas and Batu Kawan just as much as in Shanghai (China) or San Jose (California). But I always say, we must look for silver linings, not all is doom and gloom,' he said. Chow pointed out that multinational firms reassess their regional footprints and many are looking to move into more politically stable, efficient and transparent ecosystems. Thus, Penang with robust infrastructure, skilled workforce, and business-friendly environment is a natural choice, he said. He also praised Malaysia's proactive diplomatic efforts due to indications that tariffs on Malaysian goods may be capped at 10 per cent as opposed to the feared 24 per cent or more by US President Donald Trump. 'As our Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz rightly pointed out, this is a favourable shift and one that reflects, in part, Malaysia's proactive diplomatic efforts. 'I applaud the Prime Minister (Datuk Seri Anwar Ibrahim) for taking a direct and decisive approach, including writing personally to Trump to propose a US-ASEAN Special Summit. This shows that Malaysia is not just reacting but taking leadership in shaping trade outcomes for the region,' he added. The luncheon were also attended by MICCI Northern Branch chairman Datuk Brian Tan Guan Hooi together with 200 attendees from various industries and related sectors.
The Sun
25-04-2025
- Business
- The Sun
Tariff cuts possible as Malaysia, US start trade talks
KUALA LUMPUR: Zero or reduced reciprocal tariffs for Malaysia could emerge as one of the key positive outcomes from the discussions by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz with the United States Trade Representative (USTR), Jamieson Greer, yesterday. Economist Professor Dr Geoffrey Williams said the recent 90-day pause presents a window of opportunity for Malaysia to negotiate better trade terms, potentially boosting the country's global trade competitiveness. 'The executive order signed by US President Donald Trump on Liberation Day explicitly allows for negotiations that could lead to the reduction or removal of the reciprocal tariffs, and this is what the US has been promising and promoting. 'If the outcome is successful and a commitment to reduce or remove both tariffs and non-tariff barriers is achieved, then the reciprocal tariffs can be lifted or reduced,' he told Bernama. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid also sees the possibility of securing an exemption or lower tariff following the talks, as Malaysia continues its diplomatic efforts on the matter. 'Given that the current reciprocal tariff is 24 per cent, while Malaysia's average tariff based on World Trade Organisation (WTO) data is 5.6 per cent, we might reach a compromise in between – or potentially receive exemptions,' he said. He noted that Malaysia remains committed to fair bilateral trade with the US and is keen to see the trade balance between the two countries move towards a more favourable trajectory. On April 2, 2025, the US President announced a series of reciprocal tariffs affecting multiple countries, including a 24 per cent tariff on Malaysian goods, which is currently on pause. The sectors most vulnerable to these tariffs include electrical and electronics (E&E) – accounting for over half of Malaysia's exports to the US – along with rubber products, machinery and furniture. Apart from Greer, Tengku Zafrul also met Secretary of Commerce Howard Lutnick in Washington, DC, on Thursday to discuss trade-related issues. According to the Ministry of Investment, Trade and Industry (MITI), Malaysia stands ready to continue working with the US towards mutually agreeable solutions on the reciprocal tariff issue announced by Trump's administration. Malaysia has indicated its willingness to negotiate with the US on four key areas: reducing the trade deficit, addressing non-tariff barriers, strengthening technological safeguards and security, and exploring a potential bilateral trade agreement. Addressing US concern MITI also noted that Malaysia will seek alternative approaches to address the US's concerns, while ensuring that mutually beneficial trade continues. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said that with Malaysia chairing ASEAN this year, it is well-positioned to lead the US-ASEAN trade dialogue to address bilateral concerns within a regional framework. 'This platform would facilitate discussions on market access, tariff relief and trade liberalisation, leveraging ASEAN's US$3.1 trillion market to find balanced solutions. 'This not only reduces trade tensions but also enhances US-ASEAN economic ties and reaffirms Malaysia's status as a trusted global trade partner,' he said. Besides, he said there are other alternative ways for Malaysia to address US concerns, with one promising approach being a targeted Technology Safeguards Agreement focused on semiconductors, aerospace, and digital economy sectors. 'Such an agreement would strengthen intellectual property protections and secure critical supply chains, meeting US priorities while advancing Malaysia's National Semiconductor Strategy,' he added. The US remains Malaysia's second-largest export destination, accounting for 13.2 per cent of total exports in 2024. According to Malaysia's Trade Performance report, trade with the US rose by 29.9 per cent in 2024 to RM324.91 billion compared to 2023. Trade with the US accounted for 11.3 per cent of Malaysia's total trade, with exports to the US in 2024 reaching a new record high, surging 23.2 per cent to RM198.65 billion.
The Sun
25-04-2025
- Business
- The Sun
Tariff cuts possible after Malaysia, US begin talks
KUALA LUMPUR: Zero or reduced reciprocal tariffs for Malaysia could emerge as one of the key positive outcomes from the discussions by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz with the United States Trade Representative (USTR), Jamieson Greer, yesterday. Economist Professor Dr Geoffrey Williams said the recent 90-day pause presents a window of opportunity for Malaysia to negotiate better trade terms, potentially boosting the country's global trade competitiveness. 'The executive order signed by US President Donald Trump on Liberation Day explicitly allows for negotiations that could lead to the reduction or removal of the reciprocal tariffs, and this is what the US has been promising and promoting. 'If the outcome is successful and a commitment to reduce or remove both tariffs and non-tariff barriers is achieved, then the reciprocal tariffs can be lifted or reduced,' he told Bernama. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid also sees the possibility of securing an exemption or lower tariff following the talks, as Malaysia continues its diplomatic efforts on the matter. 'Given that the current reciprocal tariff is 24 per cent, while Malaysia's average tariff based on World Trade Organisation (WTO) data is 5.6 per cent, we might reach a compromise in between – or potentially receive exemptions,' he said. He noted that Malaysia remains committed to fair bilateral trade with the US and is keen to see the trade balance between the two countries move towards a more favourable trajectory. On April 2, 2025, the US President announced a series of reciprocal tariffs affecting multiple countries, including a 24 per cent tariff on Malaysian goods, which is currently on pause. The sectors most vulnerable to these tariffs include electrical and electronics (E&E) – accounting for over half of Malaysia's exports to the US – along with rubber products, machinery and furniture. Apart from Greer, Tengku Zafrul also met Secretary of Commerce Howard Lutnick in Washington, DC, on Thursday to discuss trade-related issues. According to the Ministry of Investment, Trade and Industry (MITI), Malaysia stands ready to continue working with the US towards mutually agreeable solutions on the reciprocal tariff issue announced by Trump's administration. Malaysia has indicated its willingness to negotiate with the US on four key areas: reducing the trade deficit, addressing non-tariff barriers, strengthening technological safeguards and security, and exploring a potential bilateral trade agreement. Addressing US concern MITI also noted that Malaysia will seek alternative approaches to address the US's concerns, while ensuring that mutually beneficial trade continues. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said that with Malaysia chairing ASEAN this year, it is well-positioned to lead the US-ASEAN trade dialogue to address bilateral concerns within a regional framework. 'This platform would facilitate discussions on market access, tariff relief and trade liberalisation, leveraging ASEAN's US$3.1 trillion market to find balanced solutions. 'This not only reduces trade tensions but also enhances US-ASEAN economic ties and reaffirms Malaysia's status as a trusted global trade partner,' he said. Besides, he said there are other alternative ways for Malaysia to address US concerns, with one promising approach being a targeted Technology Safeguards Agreement focused on semiconductors, aerospace, and digital economy sectors. 'Such an agreement would strengthen intellectual property protections and secure critical supply chains, meeting US priorities while advancing Malaysia's National Semiconductor Strategy,' he added. The US remains Malaysia's second-largest export destination, accounting for 13.2 per cent of total exports in 2024. According to Malaysia's Trade Performance report, trade with the US rose by 29.9 per cent in 2024 to RM324.91 billion compared to 2023. Trade with the US accounted for 11.3 per cent of Malaysia's total trade, with exports to the US in 2024 reaching a new record high, surging 23.2 per cent to RM198.65 billion.
