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Saturday, 2 August 2025

US revises tariff rate to 19%

 

 However, nation must urgently diversify its export destinations

PETALING JAYA: Malaysia’s revised tariff rate of 19% on exports to the United States offers a temporary competitive edge in the region but underscores the urgency for export diversification amid signs of growing US protectionism, economists warn.

Prof Emeritus Dr Barjoyai Bardai said the revised rate, down from 25% previously, positions Malaysia on par with neighbou­ring countries such as Thailand, Indonesia, Cambodia and the Philippines.

ALSO READ: Malaysian industries can breathe easier now

He said the rate is still more favourable than those imposed on Myanmar (40%), Vietnam (20%) and Taiwan (20%).

“We seem to be able to compete with our neighbouring countries. But we are far behind Singapore at 10%, as well as Japan and South Korea at 15%.

“With India at 25%, we are in a better position,” he said when contacted. What we really want to see is that the tariff imposed on Malaysia is as low or better than that of countries that are our competitors because we are exporting to the United States.

“So, if those countries have equal or higher tariffs than us, then our ability to compete remains intact,” he added.

However, he said that certain Malaysian exports may be vulnerable, especially low-­margin products such as solar panels, and electrical and electronic goods.

On the trade balance with the US, he said it depends on whether Malaysian imports from the US increase significantly, especially luxury goods, following the government’s decision to scrap the luxury tax.

“Although the luxury tax has been included in the expanded SST, the rate is still low,” he added.

He said Malaysia must urgently diversify its export destinations, as the US moves towards a more self-sufficient economy.

Barjoyai said semiconductors should be directed to countries with growing demand, such as China, India and Europe.

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For other items like solar panels, he said Malaysia should consider Latin America, Canada and Europe.

“There are still many untapped markets. In the long run, the United States will become a domestic-driven economy where they will seek to reduce imports.

“Today, they are already about 80% self-sustaining,” he added.

Echoing similar concerns, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the tariff adjustment signals that the United States remains open to dialogue, but the economic implications for Malaysia remain.

“As a result of recent discussions, the previously imposed retaliatory tariffs of 25% have now been reduced to 19%.

“Consequently, the negative impact on Malaysia’s economy is expected to be slightly mitigated.

“In this regard, Bank Negara has revised its GDP forecast for 2025 to a range of 4.0% to 4.8%, down from the earlier projection of 4.5% to 5.5%,” he said.

Afzanizam also highlighted the potential global impact of US ta­riffs.

“The 19% import tariff is expected to impact American consumers’ purchasing power.

“This may, in turn, dampen economic momentum in the US, which is the world’s largest econo­my. It poses a potential risk to glo­bal economic growth in the coming years,” Afzanizam said.

He also called for a balanced approach to foreign relations and economic strategy.

“It is crucial to preserve strong bilateral ties with the United States, while simultaneously exploring new opportunities with countries in Europe, the BRICS bloc, and strengthening economic and diplomatic cooperation within Asean.

“At the same time, efforts to boost productivity, build capacity and enhance economic resilience must be intensified to safeguard Malaysia’s economic sovereignty.

“These measures will reinforce investor and business confidence, underpinned by pragmatic policies and the government’s proactive response to emerging challenges,” he added.

Centre for Market Education chief executive officer Carmelo Ferlito, meanwhile, said the tariff revision reflects a political strategy rather than a pure economic measure.

“The reciprocal tariff on Malay­sia to 19% is the proof of what I have mentioned earlier,” he said, adding that US President Donald Trump was not interested in ta­riffs per se, but to reopen negotiating tables.

He said this is to show that the United States is the biggest consumer in the world and force countries to get closer to the United States as well as grant commercial facilitations.

Ferlito criticised the use of ta­riffs as a policy tool, arguing that they hurt both consumers and workers.

“Tariffs are bad, not just for Malaysia, but for the world,” he said, adding that ultimately, ta­riffs reduce trade opportunities.

“This means less choice for consumers, but also job losses, on both sides,” he added.

Ecoomic highlights of the 13th Malaysia Plan 2026-2030

 

Prime Minister Datuk Seri Anwar Ibrahim received the 13MP document from Second Finance Minister Datuk Seri Amir Hamzah Azizan at Seri Perdana, Putrajaya. - Photo: AFIQ HAMBALI / Prime Minister's Office

KUALA LUMPUR: The following are the economic highlights of the 13th Malaysia Plan (13MP) 2026-2030 which was tabled by Prime Minister Datuk Seri Anwar Ibrahim in Parliament today, with the theme "Melakar Semua Pembangunan” (Redesigning Development).”

- Investments of RM611 billion required to successfully implement 13MP

- Development allocation from the government is estimated at RM430 billion, with RM227 billion to be channelled to the economic sector.  

- Gross domestic product (GDP) growth is targeted at 4.5-5.5 per cent annually, to be led by domestic demand, particularly private consumption and investment 

- Average real private investment is expected to grow by 6.0 per cent per year, while average real public investment is projected to grow by 3.6 per cent per year. 

- RM120 billion will be allocated for national development investment for 2026-2030. 

- The federal government's fiscal deficit is expected to gradually decrease to below 3.0 per cent of GDP, with government debt not exceeding 60 per cent of GDP.  

- The average inflation rate is expected to remain stable between 2.0 per cent and 3.0 per cent annually. 

- Gross National Income (GNI) per capita is targeted to increase to RM77,200. 

- Gross exports are expected to grow by 5.8 per cent annually, with broader trade opportunities.

- Gross imports are expected to moderate to 6.1 per cent per year from 2026-2030, compared to 14.4 per cent during the first four years of 12MP. 

- The trade balance is expected to remain positive at RM116.3 billion, with a current account surplus of 2.2 per cent of GNI by 2030. 

- Malaysia aims for Electrical & Electronics product exports to approach RM1 trillion by 2030. 

- The government targets to increase halal export value to RM80 billion, with the halal industry contributing 11 per cent to GDP by 2030. 

- The manufacturing sector is projected to grow by 5.8 per cent per year. 

- RM61 billion will be allocated for development projects under public-private partnership (PPP).

- The services sector is projected to grow by 5.2 per cent per year. 

- The agriculture sector is expected to grow by 1.5 per cent per year. 

- The mining and quarrying sector is projected to expand by 2.8 per cent annually from 2026-2030, supported by increased production of natural gas and crude oil. 

- By 2030, Malaysia aspires to become a high-income nation and be among the world’s top 30 economies. 

- Malaysia must rise quickly to lead in technology and produce world-class ‘Made by Malaysia’ products and services by 2030. 

- Malaysia sets a direction to lead the Southeast Asian economy in artificial intelligence (AI), digital technology, and renewable energy, aspiring to be an influential global player. 

- The National AI Action Plan 2030 will drive talent development, research, and commercialisation of technology to support broad AI adoption. 

- Implementation of NIMP 2030 (New Industrial Master Plan), NSS (National Science Strategy), and NETR (National Energy Transition Roadmap) will be intensified in 13MP to drive inclusive and sustainable economic growth. 

- The government is considering nuclear energy as one of the clean, competitive, and safe energy sources. 

- Malaysia targets to increase the share of installed capacity to 35 per cent by 2030 from 29 per cent at present.

- The government is committed to accelerating the development of the rare earth industry, in cooperation with state governments.

- The government will strengthen the green economy through various initiatives. 

- Focus will be placed on strengthening economic integration through Free Trade Agreements (FTA) and resuming Malaysia-EU (European Union) negotiations. 

- Malaysia’s participation in FTAs such as Regional Comprehensive Economic Partnership (RCEP), Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and Malaysia-Turkey FTA (MTFTA) will be enhanced to expand markets and strengthen trade relations. 

- Malaysia will continue to leverage BRICS and ASEAN to reduce dependency on existing trade partners. - Bernama 

Related stories:

Cut red tape, let business grow’, 13MP must clear the way for private sector growth, say economists

https://rightwayspro.blogspot.com/2025/07/cut-red-tape-let-business-grow-facebook.html
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Prime Minister Datuk Seri Anwar Ibrahim received the 13MP document from Second Finance Minister Datuk Seri Amir Hamzah Azizan at Seri Perdana, Putrajaya. - Photo: AFIQ HAMBALI / Prime Minister's Office

KUALA LUMPUR: The following are the economic highlights of the 13th Malaysia Plan (13MP) 2026-2030 which was tabled by Prime Minister Datuk Seri Anwar Ibrahim in Parliament today, with the theme "Melakar Semua Pembangunan” (Redesigning Development).”

- Investments of RM611 billion required to successfully implement 13MP

- Development allocation from the government is estimated at RM430 billion, with RM227 billion to be channelled to the economic sector.  

- Gross domestic product (GDP) growth is targeted at 4.5-5.5 per cent annually, to be led by domestic demand, particularly private consumption and investment 

- Average real private investment is expected to grow by 6.0 per cent per year, while average real public investment is projected to grow by 3.6 per cent per year. 

- RM120 billion will be allocated for national development investment for 2026-2030. 

- The federal government's fiscal deficit is expected to gradually decrease to below 3.0 per cent of GDP, with government debt not exceeding 60 per cent of GDP.  

- The average inflation rate is expected to remain stable between 2.0 per cent and 3.0 per cent annually. 

- Gross National Income (GNI) per capita is targeted to increase to RM77,200. 

- Gross exports are expected to grow by 5.8 per cent annually, with broader trade opportunities.

- Gross imports are expected to moderate to 6.1 per cent per year from 2026-2030, compared to 14.4 per cent during the first four years of 12MP. 

- The trade balance is expected to remain positive at RM116.3 billion, with a current account surplus of 2.2 per cent of GNI by 2030. 

- Malaysia aims for Electrical & Electronics product exports to approach RM1 trillion by 2030. 

- The government targets to increase halal export value to RM80 billion, with the halal industry contributing 11 per cent to GDP by 2030. 

- The manufacturing sector is projected to grow by 5.8 per cent per year. 

- RM61 billion will be allocated for development projects under public-private partnership (PPP).

- The services sector is projected to grow by 5.2 per cent per year. 

- The agriculture sector is expected to grow by 1.5 per cent per year. 

- The mining and quarrying sector is projected to expand by 2.8 per cent annually from 2026-2030, supported by increased production of natural gas and crude oil. 

- By 2030, Malaysia aspires to become a high-income nation and be among the world’s top 30 economies. 

- Malaysia must rise quickly to lead in technology and produce world-class ‘Made by Malaysia’ products and services by 2030. 

- Malaysia sets a direction to lead the Southeast Asian economy in artificial intelligence (AI), digital technology, and renewable energy, aspiring to be an influential global player. 

- The National AI Action Plan 2030 will drive talent development, research, and commercialisation of technology to support broad AI adoption. 

- Implementation of NIMP 2030 (New Industrial Master Plan), NSS (National Science Strategy), and NETR (National Energy Transition Roadmap) will be intensified in 13MP to drive inclusive and sustainable economic growth. 

- The government is considering nuclear energy as one of the clean, competitive, and safe energy sources. 

- Malaysia targets to increase the share of installed capacity to 35 per cent by 2030 from 29 per cent at present.

- The government is committed to accelerating the development of the rare earth industry, in cooperation with state governments.

- The government will strengthen the green economy through various initiatives. 

- Focus will be placed on strengthening economic integration through Free Trade Agreements (FTA) and resuming Malaysia-EU (European Union) negotiations. 

- Malaysia’s participation in FTAs such as Regional Comprehensive Economic Partnership (RCEP), Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and Malaysia-Turkey FTA (MTFTA) will be enhanced to expand markets and strengthen trade relations. 

- Malaysia will continue to leverage BRICS and ASEAN to reduce dependency on existing trade partners. - Bernama 

Related stories:

Cut red tape, let business grow’, 13MP must clear the way for private sector growth, say economists

https://rightwayspro.blogspot.com/2025/07/cut-red-tape-let-business-grow-facebook.html

Sunday, 13 July 2025

BE LABEL-SAVVY TO STAY HEALTHY for organic food among health-conscious consumers

 

PETALING JAYA: The multi-billion-­ringgit global organic food and beverage market is expected to grow more by 2030, according to market research firm Grand View Research.

For Malaysia, there is a growing appetite for organic food among health-conscious consumers.

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But how do people know whether the “organic” foodstuff they buy are truly organic?

An important source is the myOrganic sticker that is usually found on the packaging of organic foodstuff sold at shops.

The myOrganic certification scheme is used to promote, implement and facilitate the adoption of organic agriculture, explains Agriculture Department (DOA) director-general Datuk Nor Sam Alwi.

“This certification scheme covers various organic activities, including fresh produce farming, beekeeping, the breeding of organic plant varieties and wild harvesting.

ALSO READ: Verifying food markers not quite an organic process

“The Malaysian Organic Certification Scheme is now known as myOrganic,” she said in in a statement to The Star.

To safeguard the authenticity of certified organic products, the regulation of organic items is primarily governed under the Food Act 1983 and Food Regulations 1985, overseen by the Health Ministry, she added.

The Agriculture and Food Security Ministry has also registered the myOrganic certification logo with the Intellectual Property Corporation of Malaysia (MyIPO) as a legitimate trademark.

“If the DOA receives complaints about the misuse of this logo, the matter will be referred to the Domestic Trade and Cost of Living Ministry for further investigation.

“In cases where fraud is confirmed, the offending company may be prosecuted under the Trademarks Act 2019,” she said.

Upon conviction, offenders may face a fine of up to RM10,000 per item bearing the misused trademark, imprisonment of up to three years or both.

ALSO READ: How bugs help you spot organic durians

Nor Sam said the department has issued guidelines to certificate holders outlining the terms and conditions for the use of the myOrganic logo.

“However, we also rely on the cooperation of consumers to address the risks of fraud and logo misuse by lodging complaints where appropriate.

“Matters related to processing, repackaging or importation of organic products fall strictly under the jurisdiction of the Health Ministry,” she said.

To create awareness, the department is actively carrying out promotional activities targeting consumers through physical events and social media platforms, as well as by engaging with local organic associations.

“These initiatives focus on promoting Good Agricultural Prac­tices (GAP), highlighting the importance of recognising the myOrganic logo, encouraging the purchase of certified farm produce.

“Additionally, consumers can verify the validity of organic certification by visiting the DOA website at www.doa.gov.my under the list of certified recipients,” she said.

Dr Juju Nakasha Jaafar, senior lecturer at the Faculty of Agri­culture at Universiti Putra Malay­sia, said there has been confusion on the authenticity of organic products.

“For example, a seller might claim he is selling pesticide-free or chemical-free vegetables, which gives consumers the impression that the products are organic.

“In reality, these vegetables may be free from chemical pesticides but are still grown using chemical fertilisers and thus do not qualify as organic,” she said.

“For vegetables to be certified as organic, all input must be completely natural.

“This includes compost fertilisers, organic pesticides and non-genetically modified organism seeds.”

These are outlined in the myOrganic certification guidelines.

“Consumers can look for the myOrganic logo on vegetable products to ensure they are truly organic.

“The DOA strictly regulates this certification,” she said, adding that more details can be found on the DOA website.

Federation of Malaysian Consumers Associations (Fomca) secretary-general Dr Saravanan Thambirajah said traders must verify the certification documents provided by suppliers before selling or labelling any product as organic.

“They should only use the term ‘organic’ when backed by certification,” he said.

Saravanan said consumers should look for official certification logos on packaging and not rely solely on general claims like ‘natural’.

“If you suspect a product is being falsely marketed as organic, you should report it to the Domestic Trade and Cost of Living Ministry or lodge a complaint with Fomca,” he added.--

By KHOO GEK SANDIVYA THERESA RAVIRAGANANTHINI VETHASALAM

https://www.thestar.com.my/news/nation/2025/07/12/be-label-savvy-to-stay-healthy

Tuesday, 8 July 2025

Why the cooperative spirit of ‘greater BRICS’ resonates worldwide



The 17th BRICS Summit is being held from July 6 to 7 in Rio de Janeiro, Brazil. This marks the first high-profile gathering of the "greater BRICS family" in its new "11+10" format - comprising 11 member countries and 10 partner countries - following Indonesia's official entry into the BRICS cooperation mechanism in January and Vietnam's official joining as a BRICS partner country in June. The summit is themed "Strengthening Global South Cooperation for More Inclusive and Sustainable Governance." As the host country, Brazil has outlined three key priorities for the meeting: deepening cooperation in public health, promoting a unified stance on climate change, and establishing mechanisms to facilitate trade and investment among member states.


On the eve of the summit, Colombia and Uzbekistan formally joined the New Development Bank as full members. Today, the BRICS family represents over half of the world's population, accounts for one-fifth of global trade, and contributes nearly 30 percent of global GDP. This remarkable momentum is no accident - it reflects the growing appeal of the "BRICS spirit" of openness, inclusiveness, and win-win cooperation. According to data from the International Monetary Fund (IMF), in 2024, BRICS collectively reached 4 percent GDP growth, significantly outpacing the global average. This demonstrates that the "greater BRICS" has become a "southern engine" that continuously fuels global development.

According to some foreign media outlets, this year's summit will discuss important topics, including the establishment of a new guarantee fund and the "Tropical Forests Forever Facility," and will voice collective positions on IMF reform. As the world is entering a new period of turbulence and transformation, characterized by rising unilateralism and protectionism, and some major powers increasingly disengaging from international governance, BRICS remains steadfast in its original aspiration, focusing squarely on cooperation and development. All its agendas and agreements are being gradually implemented, turning words on paper into real development outcomes. As of 2024, the BRICS New Development Bank has approved 120 projects worth a total of $39 billion, covering key sectors such as transport infrastructure, clean energy, healthcare, and social development. As the "vanguard of the Global South," the "greater BRICS" governance proposals are receiving global attention, and the world is looking to the "greater BRICS" for wisdom and contributions.

The growing influence of the "Greater BRICS" is evident in Western reporting. From the very start, the Rio BRICS Summit has become a focal point of global attention. Reuters noted that the expansion of the "Greater BRICS" "has added diplomatic weight to the gathering" and the bloc is presented "as a defender of multilateralism in an increasingly fractured world." The New York Times focused on the new role of "BRICS" in global governance, emphasizing its ambition to "rebalance global power dynamics." Although some media outlets maintain a "critical" and "skeptical" attitude toward the BRICS Summit, the inherent "traffic appeal" of the Rio Summit is enough to reflect the international community's attention to and recognition of BRICS.

The BRICS countries differ in terms of historical culture, political systems, economic size, and development levels, and there are differences between overall interests and individual interests. However, this precisely reflects the valuable inclusiveness and complementarity of the BRICS mechanism. BRICS cooperation is a systematic collaboration of the Global South; it is both comprehensive cooperation and open-door cooperation. It embodies the voices of the Global South, providing more development opportunities and equal rights for countries in the Global South, and promoting an equal and orderly multipolar world as well as a universally beneficial and inclusive economic globalization. This not only aligns with the interests of the Global South but also contributes to the common good of the world.

From promoting the establishment of the New Development Bank to advocating for the "BRICS+" cooperation model; from articulating the "four major partnerships" among BRICS countries to building new industrial revolution partnerships within BRICS, China's contributions to the BRICS mechanism are evident. According to the "Hand in Hand: China-LAC Mutual Perception Survey," released by the Global Times Institute during the "Global Times' Overseas China Week and Global South Dialogue" series of events held in Latin America in late June, a majority of respondents from six Latin American countries believe that the BRICS can represent the Global South to voice its concerns on the international stage. Furthermore, 93 percent of Latin American respondents believe that China has brought opportunities for development to the region, and 84 percent recognize China's development prospects. Through its own actions, China has built a bridge of hope for common development, making the gears of "greater BRICS" cooperation operate more smoothly.

IIn the face of the ever-changing international landscape, BRICS countries have demonstrated strong cohesion and action, providing a "BRICS answer" to the changes unseen in a century, which enhances the credibility of BRICS. The Rio Summit will mark a new starting point. Looking ahead, BRICS countries will continue to uphold the "BRICS spirit," deepen cooperation in various fields, promote reforms in the global governance system, and make greater contributions to world peace and development.- Global Times

Related:

BRICS: not against anything, but for development, fairness and Global South

BRICS is not “against” anything; it is “for”: for the development, for a fairer world order, and a larger role for the Global South. It concentrates on specific development problems, which makes BRICS very attractive to other developing