logo
The emergence of US-minus trade landscape

The emergence of US-minus trade landscape

CHINA is expected to accelerate its economic and diplomatic engagement with ASEAN as part of a broader strategy to mitigate US-centric risk and build alternative trade corridors.
At the same time, an emerging trend in the region is a 'US-minus' trade landscape — one in which regional blocs such as Southeast Asia, the Gulf Cooperation Council (GCC) and the European Union (EU) are actively deepening their economic linkages in response to US protectionism and unpredictability.
These were some of the views expressed at a panel discussion recently organised by MARC Ratings Bhd when presenting global and market outlook for the second half of 2025 (2H25).
Moderated by MARC Ratings chief economist Dr Ray Choy, the panel included Bank Negara Malaysia (BNM) assistant governor Mohd Fraziali Ismail, former Deputy Minister Dr Ong Kian Ming and University of Nottingham Asia Research Institute Malaysia honorary research associate Professor Dr Bridget Welsh.
The session explored the intensification of trade tensions, US tariff strategies, supply chain recalibration and the regional response from ASEAN economies.
The panel examined the far-reaching consequences of recent US trade policies, particularly those adopted under the Trump administration, which were characterised as being driven more by short-term political motives and optics rather than by coherent, long-term economic planning.
Nonetheless, the panelists noted that these policies were exerting real and lasting pressure on global supply chains, prompting businesses and governments alike to reassess their dependencies and strategic trade relationships.
Focusing on Malaysia, the panel members agreed that retaliation is unlikely to be effective or desirable, noting that a negotiated, sector-specific approach was identified as the more strategic path forward.
Key among Malaysia's priorities should be securing exemptions from semiconductor-related tariffs, given the sector's importance to the national economy and its role in global technology supply chains.
Additionally, there was strong emphasis on maximising existing trade frameworks — such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) — to boost exports, particularly in high-impact sectors such as palm oil.
Malaysia was also encouraged to continue pursuing new free trade agreements (FTAs) to diversify its trade portfolio and enhance long-term resilience, according to a statement released by MARC Ratings.
On monetary and financial policy, the statement noted that the panel observed that the ringgit remains predominantly influenced by external factors, including global monetary tightening, capital flows and investor sentiment.
While domestic policy can play a role in managing short-term volatility, its ability to counteract structural global trends is limited, it added. — TMR
This article first appeared in The Malaysian Reserve weekly print edition
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Ringgit ends higher against US$, other major currencies on Malaysia-US trade deal optimism
Ringgit ends higher against US$, other major currencies on Malaysia-US trade deal optimism

The Star

time20 minutes ago

  • The Star

Ringgit ends higher against US$, other major currencies on Malaysia-US trade deal optimism

KUALA LUMPUR: The ringgit ended higher against the US dollar and other major currencies, buoyed by optimism that Malaysia could secure a more favourable trade deal with the United States (US), said an analyst. The local note also traded higher versus the US dollar for the fifth consecutive day. At 6 pm, the ringgit rose to 4.2135/2210 against the greenback from Wednesday's close of 4.2255/2300. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Malaysia is actively engaging in discussions with the US over the impending 25 per cent tariff rate set to take effect on Aug 1, aiming to secure a rate below 20 per cent. SPI Asset Management managing partner Stephen Innes said regional tailwinds further lifted sentiment after US President Donald Trump concluded a trade deal with Japan on Tuesday, which included reducing tariffs on the import of Japanese goods into the US to 15 per cent from 25 per cent. "These developments are fuelling hopes that Washington's broader tariff strategy is shifting from confrontation to compromise. "Against this backdrop, investors see Malaysia as a likely beneficiary of the next wave of bilateral deals,' he told Bernama. Innes added that the ringgit's recent gains may signal its potential to benefit from improved trade conditions following the US-Japan agreement. At the close, the ringgit was higher against a basket of major currencies. It advanced against the Japanese yen to 2.8751/8804 from 2.8837/8870, rose against the British pound at 5.7080/7182 from 5.7230/7291 and inched up against the euro to 4.9517/9605 from 4.9586/9639. The local note was firmer against regional peers, except the Philippine peso. It increased vis-à-vis the Singapore dollar to 3.2995/3057 from 3.3071/3109, appreciated against the Thai baht to 13.0570/0863 from 13.1370/1567 and improved versus the Indonesian rupiah to 258.5/259.1 from 259.1/259.5. However, the local note traded slightly lower against the Philippine peso, at 7.43/7.45, compared to 7.42/7.44 at yesterday's close. - Bernama

China's BYD to assemble EVs in Pakistan from 2026
China's BYD to assemble EVs in Pakistan from 2026

New Straits Times

time20 minutes ago

  • New Straits Times

China's BYD to assemble EVs in Pakistan from 2026

KARACHI: Chinese electric vehicle giant BYD plans to roll out its first car assembled in Pakistan by July or August 2026 to capture growing demand for electric and plug-in hybrid vehicles in the region, a company executive said on Wednesday. BYD, the world's top EV maker, has been expanding rapidly outside its home market, where it is in a strong price war. The Pakistan plant addresses rising demand from emerging markets and allows the company to take advantage of incentives offered by the Pakistani government. The plant has been under construction since April near Karachi in a partnership between BYD and Mega Motor Company, a subsidiary of Pakistani utility Hub Power, Danish Khaliq, vice-president of sales and strategy at BYD Pakistan, told Reuters. It would initially have the capacity to produce 25,000 units a year on a double shift, he said. He did not elaborate on when the plant would achieve full capacity or say when mass production would begin there. The plant will start by assembling imported parts, with some local production of non-electric components, Khaliq said, adding it would initially produce vehicles for the domestic market, with potential to export to right-hand drive countries in the region depending on freight costs and business economics. "We do not foresee excess capacity in our system as demand in Pakistan will catch up," he said. BYD started delivering imported EVs in Pakistan in March. Khaliq did not give an exact sales number but said the sales of a few hundred cars had exceeded internal targets by 30 per cent. Khaliq said he expected the market size of EVs and plug-in hybrid cars in Pakistan to grow three to four times in 2025 from around 1,000 total units in 2024. BYD is targeting a 30–35 per cent share of the segment, Khaliq said. Based on a HUBCO filing, BYD Pakistan made around RM444 million (US$1.56 million) in profit in the March 2025 quarter. BYD will launch its Shark 6 plug-in hybrid pickup truck in Pakistan on Friday. China's MG already sells a PHEV SUV, while rival Haval is set to join the segment soon. Plug-in hybrids offer a more practical option in Pakistan as the country faces a lack of charging stations for all-electric vehicles. The government slashed power tariffs for chargers by 45 per cent in January to encourage EV uptake and private charging stations.

MMAG's unit buys Boeing freighter for RM109.18mil from GASL Ireland
MMAG's unit buys Boeing freighter for RM109.18mil from GASL Ireland

New Straits Times

time20 minutes ago

  • New Straits Times

MMAG's unit buys Boeing freighter for RM109.18mil from GASL Ireland

KUALA LUMPUR: MMAG Holdings Bhd's Labuan-based indirect unit MMAG SkyAssets has signed an agreement to buy a Boeing 737-800 converted freighter for US$25.9 million (about RM109.18 million). The seller is GASL Ireland Leasing A-1, a special purpose vehicle managed by Ireland-based Genesis Aircraft Services Ltd. The aircraft, currently leased for its aviation arm MMAG Aviation Consortium Sdn Bhd's airfreight operations under MJets Air, will become the third-owned freighter. Combined with four leased aircraft, this brings MMAG's total fleet to seven. Two earlier aircraft acquisitions from JPA No.161 Co Ltd were signed in December 2024 and January 2025, signalling MMAG's deliberate and phased transition toward greater asset control and internalisation of key fleet infrastructure. In a statement, MMAG Aviation chairman Woo Kam Weng said the acquisition represents the intent to evolve into a fully empowered aviation operator. "With greater control over our assets, we're strengthening our ability to respond swiftly to market needs, optimise internal fleet utilisation, and explore new revenue channels. "It's a deliberate step toward long-term resilience and sustainable growth in a competitive logistics landscape," he added. Subject to shareholders' approval, the acquisition will be completed via a structured cash payment arrangement, allowing for phased instalments over a 14-month period, followed by a final settlement upon transfer of ownership. MMAG said this staged approach ensures optimal cash flow management while securing long-term access to a valuable aviation asset. The company said the freighter, manufactured in 2005, is significantly younger compared to MMAG's two previously acquired freighters, which were over 30 years old at the time of purchase. It said the newer asset strengthens overall fleet profile, offering improved reliability, residual value and operational efficiency over the long term. It added that the growing fleet under ownership reflects a broader strategy to reduce dependency on third-party lessors, gain fleet deployment agility, and strengthen financial resilience through asset ownership.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store