Latest news with #Vinals
The Star
26-05-2025
- Business
- The Star
MALAYSIA IN POSITION OF STRENGTH
KUALA LUMPUR: Malaysia is coming from a position of strength amid the current economic uncertainty, sparked by the global tariff war. Former chairman for London's Standard Chartered group Jose Vinals said that while tariff imposition by the United States could have an impact on the country's future growth, strengths like its current Asean chairmanship is among the drivers supporting the overall economy. Vinals, who remains as an adviser at the global lender, noted that the country's other strengths included political stability, sound national economic policies, a good business environment and proper rule of law. 'The country is endowed with rich natural resources and you also have tremendous talent in the country. 'The creative minds here have made Malaysia a country that revolves around trade and technology,' Vinals told StarBiz during a visit here last month. As Asean chair, Malaysia is well positioned to facilitate intra-Asean integration and cohesion even against the backdrop of the current economic environment, which is fraught with uncertainties, he added. 'Asean is one of the top five strongest economic regions in the world and it's a powerhouse in Asia with a multi-engine growth story, which we expect will continue to attract strong foreign direct investment flows as investors seek to diversify their operational capacity and tap into new markets. 'Uncertainty creates new risks, but also new opportunities in fast-growing trade corridors like Asean, sustainable development, and cross-border wealth. 'A very important role that Malaysia can play is leveraging its good sense of economic diplomacy and the value of international connectivity to drive further cohesion to benefit global trade,' he said. Malaysia, like most countries, is likely to be impacted by the US' imposition of tariffs – which is currently on a pause – but the ultimate narrative is dependent on the final negotiations that take place between the United States, Malaysia and the other countries. 'It's too early to say whether the global economy will undergo a recession, but what we can expect is volatility. 'How big an impact it will have will depend on the final negotiations that take place, but it will certainly have a negative impact on growth,' he said. As with other Asean countries, Malaysia's economy has prospered through open trade, Vinals said, adding: 'I am a fan of open markets and free trade. Globalisation has brought a lot of benefits to the world when it comes to open trade and investment flows, and the answer is making sure we have freer and fairer trade, not necessarily by increasing tariffs but by removing barriers to trade.' He shared that the role of Standard Chartered is to leverage its global network across 53 markets – including all 10 Asean markets – and local market expertise as a super connector to support wealth, trade and investment flows and drive cross-border growth, with a focus on emerging high potential corridors and helping clients navigate increased complexities. 'In Malaysia, Standard Chartered has maintained a strong relationship with clients and stakeholders for 150 years. 'We have a fantastic franchise here and are working hard to make it even better. 'Our strong and very diverse business lines, excellent capital strength and asset quality position us well to continue to support our clients in the structurally higher growth and vibrant markets in which we operate. 'We're staying close to our clients to help them navigate today's uncertainties and enable them to find and seize new opportunities,' he said, adding that the bank continues to work closely with its clients as they adjust their supply chains, adapt their business models and cope with the expected lower global and local growth. 'Malaysia has a bright future ahead, and it will require work, but the trust and relationships we've built here gives us tremendous confidence that we're going to continue moving further and faster.' Commenting on the interaction he has had with colleagues, clients and stakeholders, he said that there is 'tremendous energy' to move forward. 'Through my interactions here, I can see that there is tremendous energy to move forward, and every time I come to Malaysia, I am overwhelmed by how welcoming and warm the people are. 'I think that Malaysians are truly wonderful and I leave Malaysia with all of my batteries recharged and confident in the future of the country.'
Yahoo
17-03-2025
- Business
- Yahoo
Trump's tariffs to reshape global trade with key role for Hong Kong: StanChart chairman
US President Donald Trump is unlikely to impose "super tariffs" on China, although his trade policies could create new trade links and business opportunities in Asia, the Middle East and Africa, according to the outgoing group chairman of Standard Chartered. While Trump's imposition of higher tariffs on Canada, China and Mexico have led to tit-for-tat responses and clouded the outlook for global growth, Jose Vinals played down the fears of a prolonged and debilitating trade war. "Tariffs are negative for global growth and global trade, but my hope, and also my guess, is that we are not going to have a 'super tariff' on China," Vinals told a media briefing on Tuesday in Hong Kong, where the bank's international advisory council hosted a meeting. Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team. He believed the tariffs on China were unlikely to reach 60 per cent as feared by the market, as these tariffs would be modified after negotiations. Trump this month imposed tariffs of as much as 25 per cent tariffs on certain goods from mainland China, Canada and Mexico. Vinals said a 10 per cent tariff could reduce China's gross domestic product (GDP) by about 1 to 1.5 percentage points. "This is something that can be countered by domestic policy measures," he said. "China already has quite a diversified supply chain, which limits the impact of the tariffs." As for Mexico, Canada and Europe, he said they would find new trading partners to counter the levy. "There will be less trade between the rest of the world and the US, and more trade between the rest of the world," he said. "I can see more trade between Asia and the Middle East, between Asia and Africa, and [between] Asia and Latin America as a result of the tariffs." The London-based emerging-markets focused lender, which has operations in more than 50 markets in Asia, the Middle East and Africa, was in a good position to help clients develop new cross-border trade relationships, Vinals said. Hong Kong would be Standard Chartered's leading market to capture international trade and wealth management business, he added, pointing to the city's role as a "superconnector" between China and the world. Standard Chartered reported a 19 per cent increase in underlying pre-tax profit to US$6.8 billion for 2024. Of this, 34 per cent came from Hong Kong, its biggest market. Vinals pointed out that during his visit to the city, he noted a stark difference between now and the Covid-19 pandemic: Hong Kong International Airport was buzzing and the traffic on the roads meant that the city had fully recovered from the pandemic-led slowdown. Standard Chartered reported a 19 per cent increase in underlying pre-tax profit to US$6.8 billion for 2024. Photo: Jonathan Wong alt=Standard Chartered reported a 19 per cent increase in underlying pre-tax profit to US$6.8 billion for 2024. Photo: Jonathan Wong> "This is very good for all of us who are so committed to supporting Hong Kong as an international financial centre," he said. "We continue seeing formidable opportunities in Hong Kong and in mainland China." Vinals will step down as chairman after nine years in the post - the maximum permitted in the UK - at the bank's annual general meeting on May 8. He will pass the baton to Maria Ramos, a veteran banker. Before his appointment in 2016, Vinals held positions at the International Monetary Fund, where he was the chief spokesman on financial matters. Vinals said he has had a successful tenure at the bank, achieving the desired results in three key areas: leading the management team to focus on wealth management and cross-border banking, enhancing capital strength and risk management, and improving corporate governance. One of the first things on his agenda after stepping down is to travel with his wife along Spain's Mediterranean coast. "I do hope to keep coming back to this part of the world, particularly to Hong Kong and China, because I have developed a tremendous attachment," he said. "I have always enjoyed all my visits here enormously." This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2025. South China Morning Post Publishers Ltd. All rights reserved. Sign in to access your portfolio
