Latest news with #UniversalServiceFund
The Star
6 days ago
- Business
- The Star
Zafrul: 19% US tariff fair, ties intact
New pact protects national interests, preserves sovereignty KUALA LUMPUR: Malaysia considers the newly imposed 19% tariff on its exports to the United States a fair and balanced outcome that safeguards national interests, says Tengku Datuk Seri Zafrul Abdul Aziz. While Malaysia had hoped for a lower rate, the Investment, Trade and Industry Minister said the result of the negotiations does not compromise the nation's core policies or sovereignty. 'Among Asean countries, Malaysian goods remain competitive in the US market,' he told the Dewan Rakyat yesterday. He emphasised that the United States is Malaysia's top export destination and a source of foreign direct investments, with nearly RM200bil in export value, making trade relations too important to be taken lightly. Tengku Zafrul cited the electrical and electronics sector, where about 100,000 jobs, particularly in Penang and Kedah, could be impacted by any adverse shift in US trade policy. He said both countries have agreed in principle to an Agreement on Reciprocal Trade, covering six key areas: tariffs and quotas, non-tariff barriers, digital trade and technology, rules of origin, economic and national security, and commercial considerations. Malaysia has agreed to reduce or eliminate import duties on 98.4% of all tariff lines for US imports, he said. While excise duties remain untouched, Tengku Zafrul said sales tax exemptions will apply to certain US agricultural products like dairy and seafood. On digital trade, Malaysia agreed not to impose a discriminatory digital service tax on US companies, to drop the 6% Universal Service Fund contribution requirement for American cloud and social media firms, and to lift the directive requiring domain name system traffic routing through local servers. However, Malaysia rejected several US demands that could undermine sovereignty. 'Cloud service providers and social media platforms remain subject to Malaysian laws. We also retain the right to request source code transfers for use in critical infrastructure, government procurement and the financial sector,' said Tengku Zafrul. Malaysia, he added, also agreed to strengthen export controls under Section 12 of the Strategic Trade Act, addressing US concerns over the export and transit of AI chips to third countries. It also committed not to restrict exports of rare earth elements and critical minerals to the United States, though no exclusivity was granted over Malaysia's supply. Tengku Zafrul also dismissed claims that Malaysia Airlines' US$19bil (RM80.51bil) acquisition of Boeing aircraft was made under pressure from the United States, clarifying that it is part of a long-term fleet renewal plan by Malaysia Aviation Group. He said the purchase includes aircraft, engines, training, maintenance and long-term support, which would benefit Malaysia's aerospace and tourism sectors. Tengku Zafrul said that many Malaysian companies supply critical components to both Boeing and Airbus, contributing RM25.1bil annually and supporting 30,000 jobs nationwide. 'At the same time, our tourism sector has shown strong post-pandemic recovery. Boeing forecasts global passenger traffic to grow by 4.7% over the next 20 years. This investment enables Malaysia to tap into the growth potential of both tourism and aerospace industries,' he said. Tengku Zafrul reaffirmed that the government remains firm on key national interests, including SME participation in supply chains, bumiputra vendor empowerment, halal import standards, and protections for critical sectors. He also rejected allegations that Malaysia will automatically recognise halal certificates from US bodies. While both countries have agreed to facilitate the import of meat and poultry products from the United States, such imports must still comply with halal standards set by the Malaysian Islamic Development Department. Other key areas of agreement include streamlined registration for US dairy, meat and poultry exporters, regionalisation for disease control in poultry exports, and alignment of standards for industrial products like medical devices, pharmaceuticals, and automotive goods with Malaysian regulations. Tengku Zafrul said both nations have also committed to strengthening enforcement in areas such as intellectual property rights, labour, environmental protection and sustainable fisheries management, based on Malaysia's obligations under relevant international organisations. 'I want to stress that Malaysia has not relaxed any controls or conditions that would compromise the rights of the people or the sustainability of local industries,' he said. 'There is no blanket exemption granted to import licensing or approved permits for products imported from the United States. 'There is also no full liberalisation of foreign equity ownership conditions in strategic sectors, and bumiputra equity requirements remain in place for all relevant sectors.'
The Star
6 days ago
- Business
- The Star
Tariff on Malaysian exports to US is reasonable, says Tengku Zafrul
KUALA LUMPUR: The newly imposed 19% tariff on Malaysian exports to the United States is considered reasonable and will not threaten the country's competitiveness, says Tengku Datuk Seri Zafrul Abdul Aziz. The Investment, Trade and Industry Minister stated that although Malaysia had hoped for a lower tariff rate, the negotiations' result was fair as it was achieved without compromising the nation's core policies or sovereignty. 'Among Asean countries, Malaysian goods remain competitive in the US market. While we were hoping for a lower rate, the ministry considers this outcome reasonable, given Malaysia's offer did not jeopardise any key national policies or our sovereignty, as aspired by the rakyat,' he said in Parliament on Monday (Aug 4). Tengku Zafrul said that the US is Malaysia's most important trading partner and top export destination, with nearly RM200bil in export value. He then said that this is ahead of China, and is one of the main sources of foreign direct investment this year. 'That's why we cannot afford to take any changes in trade policy with the US lightly. It will have a serious and negative impact on Malaysia,' he warned. He cited the electrical and electronics (E&E) sector as an example, saying that about 100,000 jobs, particularly in Penang and Kedah, are at risk if Malaysia cannot export these products to the US due to unfavourable trade terms. The minister said Malaysia and the US have agreed in principle to an Agreement on Reciprocal Trade (ART), which outlines detailed commitments reached during negotiations. Tengku Zafrul said this covers six key areas; tariffs and quotas, non-tariff barriers, digital trade and technology, rules of origin, economic and national security, and commercial considerations. 'The agreed improvements directly enhance the ease of doing business, making Malaysia more competitive and attractive as a leading investment destination in the region,' he said. Tengku Zafrul said the government's ongoing reform efforts are already bearing fruit, as reflected in the country's improved position in the World Competitiveness Ranking. On tariffs, Tengku Zafrul said Malaysia has agreed to reduce or eliminate import duties on 98.4% of all tariff lines for US imports. While excise duties remain untouched, he said sales tax exemptions will apply to certain US agricultural products such as dairy and seafood. Regarding digital trade, he said Malaysia has agreed to three key points: not to impose a discriminatory digital service tax on US companies; to drop the requirement for American cloud and social media providers to contribute 6% of revenue to the Universal Service Fund (USF); and to permanently lift the directive requiring all domain name system (DNS) traffic to be routed through local DNS services. However, Tengku Zafrul emphasised that Malaysia rejected several US demands that risked national sovereignty. 'Cloud service providers and social media platforms remain subject to Malaysia's criminal laws. The government retains the right to request source code transfers for use in critical infrastructure, government procurement and the financial sector,' he said. On economic and national security, Zafrul said Malaysia agreed to strengthen controls under Section 12 of the Strategic Trade Act, enforced since July 14, to address US concerns about the export and transit of artificial intelligence (AI) chips to third countries. 'Malaysia has also committed not to impose any export restrictions on rare earth elements and critical minerals to the US. But this does not grant the US exclusive rights over our supply,' he clarified. Tengku Zafrul added that both nations are in the final stages of agreeing on a joint statement, which will be issued soon, detailing the outcomes and commitments of the negotiation. 'The government remains committed to ensuring transparency and balance, protecting both the intellectual property of companies and Malaysia's sovereignty, security and economic stability,' he said.
Business Recorder
12-07-2025
- Business
- Business Recorder
202 female computer teachers under FDE jobless
ISLAMABAD: Around 202 female computer teachers working in girls' schools and colleges under Federal Directorate of Education (FDE) have been rendered jobless after the completion of a project, it was learnt on Saturday. The computer learning project was started during the last PML-N tenure of ex-PM Nawaz Sharif. According to the official notification available with Business Recorder, the Universal Service Fund's computer labs project, which aimed to provide Information Technology (IT) education to girls, officially ended on June 30, 2025, terminating the teachers' contracts. The affected teachers have appealed to Prime Minister Shehbaz Sharif for extending job contract or employment on a regular basis. They recounted their successful contributions to the project and seek urgent intervention to resolve the matter on humanitarian grounds. The 202 teachers were hired to enhance digital literacy in Islamabad's schools and colleges. The notification states that decision has been conveyed to the concerned teachers with appreciations and best wishes for their priceless contribution to successfully complete project titled 'Sustainability of Computer Labs' established by the Universal Service Fund. 'As the said project has now been successfully completed on 30.06.2025, the requirement for teaching services under this initiative has ceased. Accordingly, the services of the teachers engaged under this project will no longer be required with effect from 01.07.2025,' notification further stated. Copyright Business Recorder, 2025
Technical.ly
03-07-2025
- Business
- Technical.ly
The Supreme Court ruling that helps keep internet affordable in Pennsylvania, explained
A federal fund dedicated to providing affordable phone and internet services will continue as planned after last week's Supreme Court decision. The Supreme Court denied Consumers' Research's challenge to the Federal Communications Commission's Universal Service Fund, allowing the program to continue providing subsidized phone, internet and other communications services to underserved communities nationwide, including in Pennsylvania. The $8 billion Universal Service Fund provides money to subsidize affordable phone and internet programs. As these types of programs continue to get cut, this is a win for the over 300,000 households across Pennsylvania that don't have adequate access to the internet. 'Congress … struck a balance in establishing universal service's metes and bounds — affording the FCC latitude to adapt to technological developments, but insisting that the FCC always look to whether services are essential, affordable and widely used,' Justice Elena Kagan wrote in the court's majority opinion. The Federal Communications Commission (FCC) and the Universal Service Administrative Company (USAC) did not respond to a request for comment from While the Universal Service Fund supports multiple programs, the most direct benefit for consumers is the Lifeline program. Lifeline offers a monthly benefit of up to $9.25 toward phone and internet bills for people whose income is at or below 135% of the federal poverty guidelines or who already qualify for programs like SNAP or Medicaid. Most service providers in the United States are required to contribute to the Universal Service Fund, although there are some exceptions, such as government entities and some nonprofit organizations. Consumers can apply for the program and then sign up for telecommunications services through participating providers. This fund is separate from the Pennsylvania Universal Service Fund, which is run by the Pennsylvania Public Utility Commission and reduces charges for long-distance calls. PA's ups and downs in securing digital equity funding The commonwealth's lack of internet access, especially in rural parts of the state, has been in the spotlight while the Pennsylvania Broadband Development Authority prepares for an influx of funding to build new broadband infrastructure. The commonwealth is set to receive $1.16 billion through the Broadband, Equity, Access and Deployment program. This money will build broadband infrastructure in unserved and underserved parts of the state. But digital equity initiatives have been under fire recently. The Affordable Connectivity Program (ACP), an internet subsidy program, ran out of funding last year, leaving 763,000 households in Pennsylvania with higher internet bills. At the time, Senator John Fetterman introduced a bill that would make the ACP part of an existing program, but there has been no movement on the legislation since then. Earlier this year, the federal government halted funding allocated under the Digital Equity Act, which was going to provide $25 million to Pennsylvania for digital literacy programs, device distribution and internet subsidies, among other initiatives. Benefits for schools, libraries and healthcare The idea of universal service comes from the Communications Act of 1934, which states that all Americans should have access to communications services. Congress delegated operations of the Universal Service Fund to the FCC, which then created the USAC. This not-for-profit organization manages the daily operations of the fund and determines how much of its projected revenue service providers must contribute toward it. The money ultimately comes from fees on consumers' phone and internet bills. Consumers' Research, a conservative non-profit organization, challenged the USF at the end of 2021, arguing that this funding method was unconstitutional. The case went to the US Court of Appeals for the Fifth Circuit before landing at the Supreme Court. The Telecommunications Act of 1996 requires telecommunications companies that provide interstate service to contribute quarterly to the Universal Service Fund. This money supports the Lifeline program and three other main programs for phone and internet services: The E-Rate program distributes funding for broadband services in schools and libraries. The Rural Healthcare program provides discounts on voice, data and broadband services to rural healthcare providers. The High Cost program encompasses multiple funds that support telecommunications carriers in building broadband or voice infrastructure in unserved or underserved areas. The program ultimately helps keep service costs down for residents in those communities. As part of the Supreme Court's majority opinion, those programs have been deemed a success. 'The proof is in the pudding: Each of the four programs the FCC now operates under Section 254 reflects Congress's choices about universal service's scope and content,' Kagan wrote. 'Not one of those important but decidedly ordinary programs suggests an agency vested with unbridled discretion.'
Express Tribune
29-06-2025
- Business
- Express Tribune
USF approves seven projects worth Rs7.4b
The Universal Service Fund (USF) has greenlit seven transformative projects worth Rs7.49 billion, aiming to provide high-speed internet and seamless mobile connectivity to 0.96 million residents in 347 mauzas across 10 districts. The two Optical Fiber Cable (OFC) projects will enable high-speed fixed broadband services for 2.8 million residents in two districts. The amount was approved by the Fund's board of directors. The USF was established by the information ministry to spread the benefits of the telecom revolution across the country. It promotes the development of telecommunication services in un-served and under-served areas.
