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Showing posts with label Malaysia. Show all posts
Showing posts with label Malaysia. Show all posts

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.

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

Thursday, 3 July 2025

Powering down to keep the lights on

 

Sigh of relief: Habsah showing her electricity bill at her house in Gertak Sanggul. — LIM BENG TATT/The Star

Many using less electricity as new tariffs loom

PETALING JAYA: Many consumers are taking steps to manage their electricity bills with the implementation of the new tariff structure by the government.

For example, many homeowners are considering having solar photo­voltaic (PV) systems installed on their roofs, while others are looking at the “Time of Use” scheme, which offers lower rates during off-peak hours, now defined as starting from 10pm to 2pm on weekdays, and the entire day on weekends.

Under the new tariff announced by the Energy Commission, domes­tic consumers using less than 1,000kWh (kilowatt-hours) per month will also continue to enjoy subsidies, effective yesterday.

ALSO READ: Brace for price hikes across the board, consumers told

In Johor Baru, sales operations executive Ereena Karen Lim Abdullah, 47, and her husband are thinking about rooftop PV.

“My husband and I are thinking of installing solar panels, but we are unsure whether it is possible to do so at our apartment,” she said, adding that she would raise the matter with the building management soon.

“I used to pay around RM100 for electricity monthly but it had crept up to RM150 even though it is just me and my husband living in our apartment without much changes to our routine.”

ALSO READ: ‘We may have no choice but to hike prices’

Events planning manager Evelyn Lee, 34, said she was hoping to apply for the newly expanded Time of Use (ToU) tariff as soon as possible since it matches her lifestyle.

“My husband and I are seldom at home during the day, so it’s perfect for us since we are typically home only by 10pm.

“We also like to spend our weekends at home together, just relaxing with our dogs with the air conditioning on, so it makes sense,” said Lee, who lives in Puchong.

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In Seremban, Tong Sim Old Folks Home secretary Jessie Chan said they had already been cutting back usage before the new tariffs.

“The 18 elderly and special needs folks at the centre have been told to cut down (on their use), resulting in our monthly bill going down slightly from the over RM400 previously,” she said.

Ramesh Patel, who runs the Vivekananda Home in Rembau, has also told the children under his care to start conserving.

“We went from switching on four lights throughout the night previously, to only one now to further reduce the monthly bill which totals about RM800.”

Retiree N. Manimaran from Perak said he would start consolidating his chores.

“We now do the laundry only once every two days, while clothes are ironed once per week. I’m also cutting down the hours the air conditioner is on from six to four,” said the 67-year-old.

Father-of-four Wan Fahmi Ahmad said getting his household to change their habits would be difficult as they do not know how the new tariff structure would affect their bill.

“We are used to using around 1,500kWh to 2,000kWh, and paying over RM1,000 every month, so convincing them will be hard, especially if our bill increases only by a small amount,” the 51-year old pilot said.

Wan Fahmi, who lives in Putrajaya, added that he would consider the ToU scheme if his bill spiked significantly.

Likewise, Halimatul Abdul Adib, 42, is also adopting a wait-and-see stance.

“I don’t think I will see any significant rise in my bill, though I will wait for a few billing cycles so I can make a better comparison before doing anything.”

In George Town, pensioner Habsah Sulaiman, 70, said the new tariff helped her family.

“I usually use under 300kWh a month or an average of RM150, so it is good that the government is keeping the subsidy,” said Habsah, who lives with her son and his family, including three children.

Technician Kevin Wang, 26, said while the new tariff would support efforts to reduce carbon emissions, affordability remains a key concern.

“I am all for a greener future. But any transition must be gradual, especially for middle-income families like mine.

“The government or utility providers can introduce targeted rebates or energy-efficiency incen­­tives to ease the impact.”

The Light Hotel general manager Raj Kumar said it was too early to predict whether the new tariff would impact room rates.

“We are also actively exploring cost-saving measures such as solar PV,” he said, while stressing the importance of finding a balanced solution that protects both consumers and businesses.

“It is a tough time for everyone, and we do not believe in simply passing every cost to the customer,” Raj said.

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Wednesday, 2 July 2025

Of AI, calculators and learning maths

 


WHILE teaching mathematics in two countries, Malaysia and China, I have noticed that the way students master this subject is deeply influenced by their own educational culture and assessment systems.

Scientific calculators and artificial intelligence (AI) are now part and parcel of the learning process. However, the students’ approaches to using these tools are still firmly rooted in the foundational values shaped by their respective systems.

In Malaysia, the use of scientific calculators is a standard practice among students at the upper secondary level.

Students are allowed to use them for mathematics and additional mathematics papers in the SPM exams, especially for questions involving trigonometry, logarithms or statistical calculations.

They do speed up calculations and minimise errors, but overly relying on them can sometimes lead to weaker mastery of basic computational skills and reduced understanding of the core mathematical concepts.

Teaching foundation students at Xi’an International University in China under the Universiti Malaya (UM) offshore programme revealed a very different learning system.

Many students there had never used scientific calculators before.

As they were preparing to pursue their undergraduate studies at UM, I made them use the calculators during lectures and assessments.

They were hesitant at first, but I could see their excitement when they tried to use the device.

Nevertheless, most of them continued to solve problems, such as multiplication, square roots and trigonometric expressions, manually and did so with remarkable speed and precision.

This comfort with manual computation stemmed from their early training and a system that actively reinforces such skills.

One of the main reasons for this is China’s national university entrance exam, Gaokao. Known for its intensity and competitiveness, Gaokao strictly prohibits the use of calculators in the mathematics paper. This policy is intentional; it aims to assess a student’s genuine computational skills, ensure fairness across all regions and backgrounds, and encourage deep mastery of mathematical principles without relying on technology. As a result, Chinese students are trained from young to memorise formulas and solve problems manually.

The outcome is a generation of students who possess strong fundamental skills and a high level of confidence when tackling complex problems using logical and structured steps.

Despite these systemic differences, global developments continue to impact both countries. Students in Malaysia and China are now turning to Ai-powered apps such as CHATGPT, Deepseek, Symbolab, and Photomath, and are becoming increasingly dependent on Ai-generated solutions without fully engaging with the problem-solving process.

To address this, I apply a simple yet effective approach in my classroom. Students are required to answer the questions using their own reasoning first before they are allowed to check or verify their answers using AI.

This approach trains them to think critically, assess their own solutions, and compare them with the output provided by AI tools. It also builds confidence in their conceptual understanding.

What I find most encouraging is how students respond when their answers differ from the Ai-generated ones. On several occasions, I have heard them say confidently, “I think my answer is correct. The AI is wrong.” To me, this is a clear indicator of authentic learning.

These students are not simply replicating solutions; they have internalised the logic, are able to explain their reasoning, and are not afraid to challenge the authority of a machine when they believe in their own understanding.

I fully support the integration of AI as a learning tool, but I also believe that solving problems manually and conceptual mastery of the subject – in this case mathematics – must remain the foundation of education.

Technology should enhance students’ learning but not replace their ability to think.

FATIN NABILA ABD LATIFF Senior lecturer Mathematics Division Centre for Foundation Studies in Science Universiti Malaya

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Friday, 27 June 2025

New bank tax backlash, Financial access at risk: Fomca

 

Govt urged to revise service tax on industry to not burden public


While basic banking services are exempt from the 8% service tax starting July 1, trade and consumer groups are unhappy that it has been imposed on other fee-based transactions. They warn of added burden on firms and customers.

Ahead of the implementation of service tax on financial services on July 1, groups have voiced concerns, saying that this is likely to drive up costs for businesses and the regular people.

Federation of Malaysian Consumers Associations (Fomca) vice-president Datuk Indrani Thuraisingham said ordinary Malaysians would be the most impacted by the 8% service tax on fee-based financial services.

Indrani said the small charges may seem as a trivial amount but it is a huge sum when multiplied by the millions of transactions.

“When Malaysian banks are riding on massive profits and control trillions in assets, why should struggling consumers be asked to chip in more.

“This is taxing basic financial access, not luxury,” said Indrani.

Indrani called on Bank Negara Malaysia and the Finance Ministry to immediately review this new ruling.

“The principle of consumer fairness must be upheld,” said Indrani, adding that banks should absorb part of this tax, especially on low value and high-volume services.

Indrani also said consumer groups should be given the space to scrutinise every fee schedule so that banks should be held accountable and thereby prevent opportunistic fee hikes disguised as tax adjustments.

“If this goes ahead unchecked, the government can expect deeper financial exclusion, rising household debt and widening inequality,” she said.

Fomca secretary-general Saravanan Thambirajah said the announcement by Putrajaya raises concerns for everyday consumers on how this would affect their financial service experience.

“In real terms, this tax means that consumers will see higher charges for many common services offered by banks.

“Even services used by small businesses and self-employed individuals such as overdraft facilities, bank guarantees and remittance services are likely to be affected,” said Saravanan.

Saravanan also said there is a concern that this move would set a precedent for banks to gradually increase fees under the guise of tax compliance.

“Once consumers grow accustomed to higher charges, more subtle fee revisions should be introduced over time,” said Saravanan.

SME Association of Malaysia national president Chin Chee Seong said as the 8% service tax rate predominantly affects commission-based financial services, SMES are likely to see an increase in cost of doing business.

Chin said businesses are already bracing for the SST on commercial rental and leasing services, barring which rental costs have already increased by 20%-30% from a year ago.

“On top of that, they will also be dealing with the mandatory 2% Employees Provident Fund contribution for foreign workers and the restructuring of electricity tariff.

“The cost of doing business is getting higher and higher. It will definitely affect our cashflow. It doesn’t look good for the industry and the economy,” Chin said.

“If all of these are coming together, how are we going to plan our next few months especially as we have passed the midterm. It is going to be tougher for us to do business,” Chin added.

Chin said there has to be more clarity on certain aspects of the tax system for instance on the RM500,000 threshold on taxable financial services.

“Items such as luxurious items, (imported) fruits, I think that is clear cut and they can go ahead. But when it comes to financial services such as leasing and rental, I think that should be deferred first,” he said.

“The government should understand that we are not against their policies but these policies must be more considerate of the difficulties of doing business. The cost of doing business is high while consumer spending is low,” Chin said.

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