Indonesia says 19pc US tariff might kick in before August 1
Airlangga said the timing of the tariff depended on a joint statement expected soon between the two countries, which reached a trade deal last week that led to a reduction in the threatened US proposed tariff rate to 19 per cent from 32 per cent.
The deal was one of only a handful reached so far by the Trump administration ahead of the August 1 negotiation deadline with numerous countries. — Reuters
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The Star
21 minutes ago
- The Star
China's little-known 'Underwear Hub' looks to expand global imprint
BEIJING: Shenhu, a little-known small town in Jinjiang, Fujian province, has struck gold by producing more than 20 per cent of the world's underwear. It has around 500 underwear companies and supporting factories that generate an annual output value exceeding 50 billion yuan (US$6.97 billion). More than ten million pieces are shipped to global markets daily, data from local authorities showed. "We used to be a fishing town, relying on the sea for livelihood. After the reform and opening-up, overseas Chinese relatives brought back foreign lingerie, which opened the eyes of Shenhu residents to new business opportunities. This led to a shift from a single maritime-based economy to a more diversified production and lifestyle," said Yang Huisu, executive vice-president of Jinjiang Shenhu Chamber of Commerce. Opened in 1989, Jinjiang Jiali Costume and Weaving Co produces underwear, socks and yoga wear such as leggings and sports bras that cover adults and children. Its annual revenue is about US$40 million. Cai Xinling, general manager of the company, said they handle the entire manufacturing process in-house, from fabric weaving, dyeing and printing to producing elastic bands, main fabrics and auxiliary materials. About 30 per cent of its orders come from the United States. Recent ones involved Germany, the United Kingdom and Canada as well. Male underwear sells at US$0.8 to US$1 each for US customers, while medium and high-end ones cost about US$1.8 to US$2.5, according to Cai. "This year, when US tariffs hit, both Shenhu township and Jinjiang city governments provided crucial support. They organised domestic giants like Anta and Xtep to visit export-oriented manufacturers like us to create opportunities in business cooperation in doing domestic trade," Cai said. "The government also mediated with banks to secure favourable loan terms for affected businesses." The company now focuses on developing functional fabrics, such as antibacterial and temperature-regulating ones, and innovating in products based on more tailored demands. "For example, the underwear we wear at the office and while exercising is different in fabric and function. For sports, we need moisture-wicking and antibacterial properties, whereas for office wear, cotton remains the go-to choice. It's all about superior comfort," she said. Although it has shifted some of its business to the domestic market due to global uncertainties, Cai believes underwear remains an essential consumption. "With 90 per cent of Shenhu's capacity traditionally export-oriented, we're now bridging to domestic markets through government-led exhibitions and partnerships with local brands." The transformation reflects Shenhu's adaptive spirit: maintaining its supply chain superpower while strategically rebalancing markets, one stitch at a time. In 2004, Shenhu town was awarded the title of an "Underwear Hub of China". The complete industrial chain enables Shenhu's underwear manufacturers to source all materials for a single garment within just 30 minutes. "This fully integrated supply chain has not only boosted production efficiency but also ensured more stable output for the local industry," Yang from the chamber said. Flagship products of Fujian Jinjiang Shenhu Shengda Clothing Factory in the town include knitted underwear for men and women, supplemented by knitted vests, T-Shirts and thermal wear. Nian Xiaoxin, general manager of the factory, forecasts a more than 50 per cent growth in production and sales this year. "A notable market shift has seen major retailers and bulk purchasers increasingly bypass Hong Kong and Shanghai trading intermediaries to engage directly with manufacturers like us," he said. The factory also received orders from new customers such as the UK, Italy, Japan and South Korea. "Shenhu's most significant industrial advantage lies in its complete supply chain ecosystem. Virtually all upstream and downstream raw and auxiliary materials can be procured within the town on the same day. Moreover, our relatively large purchase volumes and direct supplier relationships give us considerable pricing advantages," he said. Nian remains optimistic about the future development prospects of Shenhu's lingerie industry. In the next five years, the town aims to further expand into European, South American and South-East Asian markets. It will collaborate with cross-border e-commerce platforms like Shein and TikTok to explore new production models. The industry also plans to shift its focus from exports to domestic sales to mitigate risks from international trade fluctuations, according to Yang. - China Daily/ANN
Malay Mail
21 minutes ago
- Malay Mail
Why it's hard for Malaysia to win a trade deal with the US — Phar Kim Beng
JULY 22 — Trade negotiations with the United States have never been easy. But under President Donald Trump's second term, they've become even more complicated — especially for countries similar to Malaysia. The reason is simple: the US doesn't merely seek mutual benefit; it aims to dominate. And its primary tool is tariffs. When the US imposes or threatens tariffs on exports — whether agricultural products, medical devices, automotive parts, or digital services — it forces countries into a reactive posture. Although Malaysia's electronics and semiconductor exports are currently exempted from punitive tariffs, this should not be taken as a sign of safety or favour. Exemptions can be reversed. The threat is part of a broader tactic to compel compliance across all sectors. This form of pressure is especially difficult for economies analogous with Malaysia — those heavily reliant on trade, but without the strategic weight to push back effectively. Trade talks are not one-dimensional. Malaysia must negotiate externally with Washington, while internally managing the political fallout among industry groups, lawmakers, and civil society. It's what scholars call a 'double-level game'. No Malaysian government can accept every US demand without inviting domestic resistance. Yet pushing back may invite retaliation. And the US, under Trump, has shown no hesitation to act unilaterally — even toward long-standing allies. The Philippines, despite its security alignment with the US, is still facing 20% tariffs. If they are not spared, Malaysia should not expect preferential treatment. The essence of the American trade posture is to leave very little room for sovereignty. Washington increasingly challenges regulatory frameworks — in food safety, environmental protection, digital governance, and labour conditions — as disguised protectionism. Countries akin to Malaysia are pushed toward a binary choice: either deregulate completely or allow American goods to enter tariff-free, regardless of local concerns. This isn't negotiation. It's economic coercion under the cover of trade diplomacy. An aerial view picture of the port of Santos, the largest port complex in Latin America and one of the largest in the world, taken on July 17, 2025, in Santos, Sao Paulo state, Brazil. — AFP pic Malaysia cannot count on ASEAN's collective response this time. With the August 1 tariff deadline fast approaching, regional coordination is nearly impossible. Even though electronics and semiconductors — the lifeblood of Malaysia's exports — are spared for now, the broader system is still under threat. If the US shifts its focus to value-added manufacturing, digital services, or intellectual property rights enforcement, Malaysia could quickly become a new target. Some may argue that zero-tariff deals from the US represent an opportunity. But even such arrangements come with strings attached. They open Malaysia's markets while keeping US regulatory levers intact. It's akin to opening your doors wide and hoping the guest will do the same. But the guest holds all the keys. This is why Malaysia faces a structural challenge. To resist is to risk retaliation. To comply is to erode policy autonomy. And even in sectors currently shielded from tariffs, the climate of uncertainty deters investment and long-term planning. Ultimately, the US does not just trade. It disciplines. Its trade strategy is consistent with its broader foreign policy logic — hierarchical, transactional, and unapologetically self-interested. Countries parallel with Malaysia in scale and exposure are forced to adapt constantly or face exclusion. There are no easy answers. But clarity is a start. Malaysia must accept that the US no longer views trade as mutual gain, but as leverage. In response, Malaysia must invest in domestic resilience, seek supply chain diversification, deepen South-South linkages, and work toward a coalition of likeminded economies that still believe in rules-based trade. Because when the rules are rewritten by one player, and the game is played with two sets of standards, the only real protection is strategic alignment — with partners who understand that fairness is not just about tariffs, but trust. In approaching August 1 — the day when the US will impose a tax of 25 per cent on most major Malaysian items — the trade negotiators of Malaysia must understand that embedded into Trump's logic of tariff is also the pernicious American demand, invariably imposed on Malaysia, to keep buying American goods. Only by buying, such as going beyond the 30 Boeing airliners that had been bought by the Malaysian Airline System (MAS) and AirAsia, can Malaysia work with the US towards a zero-tariff barrier. * Phar Kim Beng is a professor of Asean Studies and director of the Institute of Internationalization and Asean Studies at the International Islamic University of Malaysia ** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
Barnama
40 minutes ago
- Barnama
- Global Risks, Threats To A Sustainable World Economy
22/07/2025 04:03 PM Opinions on topical issues from thought leaders, columnists and editors. By : Prof Datuk Dr Ahmad Ibrahim Climate change and resource depletion are two of the defining risks to the global economy. This explains the growing worldwide efforts to reduce carbon emission and practise the efficient use of resources. But the climate and resource risks, though major, are not the only threats. The world economy today faces a complex, interlinked set of risks. As a country, Malaysia also has to deal with similar risks. Effectively managing them is key to our sustained economic performance. The other major risks include geopolitical tensions and conflicts, global health crises, financial system instability, technological disruptions, cybersecurity risks, inequality and social unrest, and demographic shifts. We also know for a fact that where there are risks, there are also opportunities. There is no doubt that political instability and trade disputes can disrupt supply chains, energy markets, and global investment flows. The Ukraine-Russia war and US-China trade tensions are recent examples. Though many know that diplomacy and multilateralism through forums like the UN, ASEAN, G20 and WTO are the ways to manage them, executing is never easy. Aside from diplomacy, diversifying trade and energy routes, as well as building regional trade agreements to minimise overdependence on specific countries can be possible solutions. The COVID-19 pandemic showed how a health emergency can cripple economies, disrupt labour markets, and affect global travel and trade. Dealing with such health crisis includes investing in global health infrastructure, early warning systems, and pandemic preparedness. They also include building resilient, flexible supply chains for essential goods like medicines and food and of course international cooperation for the rapid deployment of vaccine and treatment. Rapid technological change a risk It is no secret that financial crises, market volatility and debt defaults can destabilise economies. Possible solutions include strengthening global financial regulations and oversight, maintaining sound fiscal and monetary policies. Rapid technological change is also a risk. It can displace jobs, widen inequality, and increase vulnerability to cyberattacks on financial systems, infrastructure, and data. We need to invest in digital infrastructure and cybersecurity, updating regulations to keep pace with technology (AI ethics, data privacy), and reskilling and upskilling the workforce for the digital economy. Rising wealth and income inequality form another risk. They can trigger social unrest, political instability, and economic stagnation. This is where implementing inclusive economic policies and access to education matter. Small businesses need support, and strengthening the social protection systems can make a difference. Furthermore, the ageing populations in developed countries create mismatches in the labour markets, pensions, and healthcare. Reforming pension and healthcare systems for ageing societies, investing in education and job creation for young populations, and managing migration policies effectively can be the tonic to neutralise such risks. How then can the world sustain the global economy amid these risks? A popular suggestion is to adopt a circular economy model. And decouple economic growth from resource use and emissions through renewable energy, sustainable agriculture, and waste management. Also need to build resilient supply chains by diversifying suppliers, investing in local production capacity, and use digital tools for real-time risk management. No country can tackle these risks alone. Strengthening global governance and partnerships is crucial. Not to mention promoting responsible technological innovation. This is where we ensure that emerging technologies are developed with ethics, inclusivity, and sustainability in mind. The risks to the global economy are increasingly interconnected. A financial crisis can amplify social unrest. A pandemic can trigger supply chain and geopolitical tensions. A systems-thinking approach to risk management, grounded in sustainability, resilience and global cooperation, is the most effective path forward. Systems thinking is increasingly recognised as a powerful approach for managing complex, interconnected risks in today's global economy. Systems thinking is an approach to problem-solving that views challenges as parts of a broader, interconnected system rather than isolated issues. It focuses on understanding relationships and feedback loops, and identifying leverage points for interventions. How then to apply systems thinking to risk management and sustainability? First map the system. Use tools like causal loop diagrams, systems maps, or stock-and-flow models to visualise how different risks and factors interact. Identify reinforcing and balancing loops within the system. Economic inequality reinforcing social unrest, which in turn destabilises markets and worsens inequality. Focus on areas where small interventions can produce large system-wide changes. Education reforms can uplift economies, improve health, reduce crime, and empower communities simultaneously. Move beyond siloed thinking. Address climate, health, financial, and social risks through integrated policies and partnerships. There is no denying that by effectively managing such global risks, the impending threats to the world economy can be neutralised. The systems approach is the right way. -- BERNAMA Prof Dato Dr Ahmad Ibrahim is affiliated with the Tan Sri Omar Centre for STI Policy Studies at UCSI University and is an associate fellow at the Ungku Aziz Centre for Development Studies, Universiti Malaya. He can be reached at ahmadibrahim@ (The views expressed in this article are those of the author(s) and do not reflect the official policy or position of BERNAMA)
