Indonesia reaches trade deal with US, will pay 19% tariffs and buy 50 Boeing jets
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Straits Times
18 minutes ago
- Straits Times
Singapore businesses to get boost in Malaysia forays under pact
Find out what's new on ST website and app. The MOU signed between SCCCI and Maybank Singapore was witnessed by (back, from left) Mr Kho Choon Keng, SCCCI President; Ms Gan Siow Huang, Minister of State for Foreign Affairs and Trade and Industry; and Mr Chong Wee Yeat, Head of Global Banking, Maybank Singapore. SINGAPORE – Businesses in Singapore will benefit from workshops, faster opening of bank accounts and more under a pact aimed at boosting cross-border collaborations with an eye on the Johor-Singapore Special Economic Zone. The memorandum of understanding inked on July 17 between Maybank, Malaysia's largest lender by assets, and the Singapore Chinese Chamber of Commerce and Industry (SCCCI) is also looking to tap opportunities across South-east Asia. The region is projected to become the world's fourth-largest economy by 2030, with a combined gross domestic product of US$4.5 trillion (S$5.8 trillion). SCCCI and Maybank said they will hold meetings, workshops and networking events to promote development, investment and trade, with a focus on the Johor-Singapore Special Economic Zone. Maybank will provide tailored solutions for businesses, including the faster onboarding of accounts. It will also support programmes on topics like sustainability and syariah-compliant investments. 'This collaboration not only demonstrates a long-term commitment to Singapore businesses, but also marks a more active role for both parties in the new regional development landscape,' said Mr Chong Wee Yeat, head of global banking at Maybank Singapore. Mr Kho Choon Keng, president of SCCCI, which has 5,000 corporate members and over 150 trade association members, said the agreement will help businesses expand into international markets with confidence and efficiency. 'Singapore has understood the importance of international opportunities since its founding. Today, in this uncertain environment, we should continue to open our minds and broaden our horizons to international development,' he said. Minister of State for Trade and Industry Gan Siow Huang, who witnessed the signing of the pact at the SCCCI building in Hill Street, said the Government will continue to support businesses that are dealing with an uncertain external environment. She pointed to the Business Adaptation Grant, which was announced by the Singapore Economic Resilience Taskforce last week. The grant, which is meant to help businesses adjust to a new tariff landscape, will be launched by October. It will be capped at $100,000 per company and require co-funding. The Johor-Singapore Special Economic Zone is expected to create 20,000 skilled jobs for people on both sides of the Causeway. The zone for business and investment in Malaysia covers the Iskandar Development Region. It is already expected to draw investments from Singapore-based clients of Maybank.
Business Times
18 minutes ago
- Business Times
US House agrees to consider crypto legislation in big win for the digital asset industry
[WASHINGTON] The Republican-controlled US House of Representatives cleared key procedural hurdles on crypto legislation on Wednesday (Jul 16), a day after US President Donald Trump intervened to save the initiative, paving the way for the first federal law for digital assets. The votes came after more than nine hours of private talks as leaders worked to win over lawmakers sceptical of how the package was structured. A bill to establish a federal framework for stablecoins is likely to be the first to be passed, in what would be a watershed victory for the crypto industry. It has already been approved by the Senate, and if approved by the House, it would go to Trump for his signature. Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 US dollar peg, are commonly used by crypto traders to move funds. They have gained much momentum in recent years, offering faster and cheaper transaction costs than moving money through a bank. In addition to stablecoins, the House is set to consider a bill to establish market structure rules for crypto products, including defining when the products are a commodity and not subject to oversight from the Securities and Exchange Commission. The Senate has yet to take up a similar measure. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The third bill, strongly backed by conservatives, would prohibit the Federal Reserve from issuing a digital currency of its own. Some Republicans argue a Fed digital currency could give the government too much control over Americans' finances. Current Fed leaders have said they are not considering such an initiative. House Majority Whip Tom Emmer said on X late on Wednesday that the third bill would be attached to a separate defence authorisation bill as part of the overall compromise. House Republicans had suffered a setback in their bid to advance the bills on Tuesday, when several conservative Republicans joined with Democrats to block an earlier procedural vote. But Trump met with the holdouts and paved the way for another vote on Wednesday. Even after those talks, subsequent procedural votes required to consider the legislation proved fraught, as Republican leaders had to spend several hours convincing conservative lawmakers to allow the bills to proceed. A handful of members had resisted efforts to consider the three main pieces of crypto legislation separately. REUTERS
Business Times
18 minutes ago
- Business Times
Chinese EV brands rule the road in Malaysia
[KUALA LUMPUR] Chinese electric vehicle (EV) brands have quietly overtaken European, American and even local competitors to dominate Malaysia's emerging EV market, riding a wave of shifting consumer perception, favourable pricing and aggressive regional investment. In the first six months of 2025, Chinese EVs accounted for nearly 50 per cent of all new electric cars registered in Malaysia, with close to 8,400 units sold out of a total 17,251, indicated Road Transport Department data. The clear front-runner is China's BYD, which alone delivered 5,434 units, outpacing home-grown Proton's 4,043 cars and US-based Tesla's 2,399 vehicles. BYD's early advantage stems from having introduced its first EV, the Atto 3, in 2022. That marks a dramatic reversal from just four years ago, when only two Chinese-made EVs were registered in the country, then still a stronghold of premium European marques such as Porsche and Mini. Now, German EVs have fallen to just 10 per cent of market share. 'This level of adoption wasn't even on the radar a few years back,' said Jeremy Khoo, a car sales agent in Selangor. 'People used to think EVs were for the rich but now they're realising you can get a stylish, high-tech EV at a price that rivals conventional cars.' Although imported EVs in Malaysia are still capped at a selling price of above RM100,000 (S$30,270), there are plenty of EV choices that are priced below RM130,000, for instance, Neta V, BYD Dolphin and MG ZS EV. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up With internal combustion engine (ICE) models such as the Honda City or Mazda CX-3 now priced similarly, buyers are increasingly willing to give EVs a try, he added. 'Malaysians are pragmatic buyers… They want value, reliability and affordability. Right now, Chinese EVs are checking all the boxes,' Khoo told The Business Times. Ding Yuqian, head of China autos research at HSBC, said while China exports both ICE and EV models to the Asean region, including Malaysia, its EV products are proving far more competitive. She anticipates that EVs will constitute the majority of Chinese automakers' overseas sales mix by the end of this decade. Fuel subsidy removal accelerates EV demand RON95 petrol, which is widely used by most Malaysia registered vehicles, is currently priced at RM2.05 per litre, roughly 35.5 per cent below the unsubsidised petrol of RM3.18. PHOTO: BT FILE A broader policy shift is also nudging consumers towards EVs. The government is planning to remove the blanket subsidy for RON95 petrol this year, continuing fuel support for only lower-income groups. RON95 fuel, which is widely used by most Malaysia registered vehicles, is currently priced at RM2.05 per litre, roughly 35.5 per cent below the unsubsidised RON97 petrol (RM3.18). Macquarie Equity Research earlier estimated that if RON95 prices rise to RM3.25 per litre, EV users could save as much as 35 per cent in fuel costs. The policy shift follows the government's move last year to eliminate diesel subsidies, which resulted in a 15 per cent drop in diesel vehicle sales, said Patrick Ziechmann, PwC Asean automotive lead. 'We anticipate that the removal of (the RON95) subsidy could result in a similar impact on ICE vehicles sales. This could lead to a positive effect for EVs,' he told BT. Still, challenges remain. Range anxiety and insufficient charging infrastructure continue to deter some buyers, though the number of charging stations is steadily rising nationwide. Double down on Malaysia Proton 7 has become Malaysia's fastest-selling EV, with more than 4,000 units already registered. PHOTO: PROTON Chinese carmakers are not just selling into Malaysia, they are also building in it. To stay competitive when tax exemptions on Completely Built-Up (CBU) EVs eventually lapse in 2027, Chinese carmakers are making big local bets. Chery is investing RM2.2 billion in a Smart Auto Industrial Park in Selangor. This will be its first production hub in South-east Asia, with plans to produce ICE, plug-in hybrid and battery EVs. Vehicles produced at the site will also be exported to neighbouring markets, with Vietnam already identified as a key destination. Geely, which acquired a 49.1 per cent stake in national carmaker Proton in 2017, has partnered with DRB-Hicom to build the Automotive Hi-Tech Valley in Tanjong Malim, Perak. The development is envisioned as a regional EV manufacturing hub. Proton has already broken ground on an EV plant there, which will roll out the 7 – Malaysia's first national electric car. Officially launched in December 2024, the Proton 7 has become Malaysia's fastest-selling EV, with more than 4,000 units already registered in the first six months of 2025. Priced from RM105,800, the model offers both affordability and familiarity, making it a popular choice for Malaysian families transitioning away from ICE vehicles. Meanwhile, Leapmotor has teamed up with Stellantis to begin local assembly of EVs at its Gurun plant in Kedah. The initiative, backed by a RM24 million investment, will start production of Leapmotor's C10 EV by year-end. 'Chinese brands, led by BYD, have already captured around half of the Asean EV market,' said HSBC's Ding. Given rising trade tensions between China and the US and Europe, she noted, emerging markets such as South-east Asia are the most promising overseas opportunities for Chinese carmakers. Regional players join the race China's rise in Malaysia has stirred interest from other Asian giants. South Korea's Hyundai is shifting from a distributor-led model to a direct presence in Malaysia by establishing a new subsidiary, Hyundai Motor Malaysia. This new subsidiary will begin local assembly at the Inokom Corporation facility in Kedah in the third quarter of 2025. The facility is slated to produce up to seven models over the next five years, initially focusing on ICE and hybrid variants, with future plans to expand into EVs. This strategic move by Hyundai reflects a broader effort to deepen its regional manufacturing footprint. Sweden-based Volvo Cars, via its Malaysia subsidiary Volvo Car Malaysia, in 2022 announced its plan to produce the first assembled EV at its manufacturing facility in Selangor, which in line with the company's plan for going into full electrification by year 2030. Meanwhile, German-based Mercedes-Benz in 2023 launched its first locally assembled EV in Malaysia, the EQS 500 4Matic sedan, produced at its Pekan, Pahang plant. Market still in early days While EVs are gaining traction in Malaysia, they still make up a small portion of the overall automotive market. In the first half of 2025, EVs accounted for around 4.3 per cent of the 396,747 vehicle registrations. The growth is significant compared with last year's EV registration of 21,789. That 2024 figure itself represented nearly 64 per cent jump from the 13,301 units registered in 2023, indicated Road Transport Department data. However, Malaysia's EV adoption still lagged behind the regional peers. EVs make up 25 per cent of new car sales in Vietnam, 23 per cent in Thailand, 15 per cent in Indonesia, and 82 per cent in Singapore. Even so, market observers believe there is potential still. EV sales accelerated from less than 300 units registered in 2021 to more than 21,000 registered EVs in 2024. This rapid increase aligns with ambitious government targets set out in the National Energy Transition Roadmap, which aims for EVs to make up 15 per cent of new car sales by 2030 and 80 per cent by 2050. Expanding China's EVs in South-east Asia Tesla's experience centre in Kuala Lumpur. As at the first half of 2025, the US-based EV brand holds the third-highest number of registered EVs in Malaysia. PHOTO: GOH SENG CHONG The surge of Chinese EVs is not just a local trend in Malaysia, but a significant force reshaping the global automotive landscape, said market observers. As HSBC's Ding observed, Chinese carmakers are increasingly leveraging Asean nations not only as key markets but also as integral components of their global supply chains. This involves substantial investments in battery factories, sophisticated logistics networks, and advanced research and development hubs across the region. PwC's Ziechmann said Asean is a naturally attractive export market for Chinese automotive companies due to its proximity, efficient transportation links and historical ties with countries such as Malaysia and Singapore. Furthermore, the region offers compelling growth opportunities. Automotive markets are expanding in Vietnam, the Philippines and Singapore, while Indonesia and Thailand are poised for renewed growth in the coming years, particularly within the EV segment. The growing presence of Chinese EV manufacturers in Malaysia and across the Asean automotive market has affected the traditional big players, said Ziechmann. 'We're already seeing how new Chinese EV models are reshaping the competitive landscape,' he said, noting that in 2024 alone, Japanese original equipment manufacturers (OEMs) lost around 4 per cent market share across the region, with most of that shift going to Chinese brands. In Thailand, BYD and MG entered the top 10 best-selling OEMs, surpassing well-established names such as Ford, Mazda and Nissan. In Singapore, BYD was the best-selling EV brand in 2024. In Indonesia, Wuling and BYD each secured 4 per cent of total market share, ranking ninth and 10th respectively.
