BTH: US tariff hike & OPR cut [WATCH]
Despite early efforts by the government to de-escalate tensions, including high-level engagements in Washington, the tariff now threatens to disrupt Malaysia's export economy, raising questions about the transparency and effectiveness of our trade strategy.
Meanwhile, as other Asean nations strike independent deals with global powers, Malaysia finds itself chairing a fragmented regional bloc.
Can we still lead a cohesive Asean response, or are we witnessing the limits of regional solidarity in the face of economic nationalism?
Meanwhile, the surprise OPR cut by Bank Negara Malaysia — the first since 2023 — has sparked mixed reactions.
While the Prime Minister describes it as a prudent, proactive step guided by encouraging inflation and employment data, analysts remain divided.
Does it indicate underlying economic stress, or is it a strategic move to spur domestic demand amid global headwinds?
This week on Beyond the Headlines, we're joined by IDEAS Deputy Director of Research Dr Stewart Nixon to unpack the shifting landscape of global trade tensions, regional realignment, and domestic economic policy.
From the tariff fallout to investor sentiment and strategic repositioning, we ask — Is Malaysia losing ground or quietly finding its footing in a new economic era?
Watch the full discussion on NST Online's YouTube Channel.
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New Straits Times
4 hours ago
- New Straits Times
NST Leader: Vigilance key to stopping scams
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The Sun
7 hours ago
- The Sun
SCCI, Maybank in pact to drive investments in Southeast Asia, with focus on JS-SEZ
PETALING JAYA: Malaysia is set to benefit from a landmark memorandum of understanding (MoU) signed between the Singapore Chinese Chamber of Commerce and Industry (SCCCI) and Maybank Singapore Ltd. The MoU aims to enhance cross-border business collaboration and stimulate investments across Southeast Asia, with a strategic focus on Singapore, Malaysia and the Johor-Singapore Special Economic Zone (JS-SEZ). Maybank Singapore CEO Alvin Lee Han Eng said with a dual-market advantage in Singapore and Malaysia, as one of the earliest proponents of the JS-SEZ, Maybank is committed to supporting businesses with a comprehensive suite of banking solutions, while identifying twinning opportunities for expansion into the zone. 'Beyond deepening economic cooperation between Singapore and Malaysia, Maybank also brings the strength of its presence across all 10 Asean markets to support SCCCI members in pursuing regional growth ambitions,' he said in a statement. The MoU signing was witnessed by Singapore's Minister of State for Foreign Affairs and Trade and Industry Gan Siow Huang. With Southeast Asia poised to become the world's fourth-largest economy by 2030 and a projected combined gross domestic product of US$4.5 trillion (RM19 trillion), the region offers significant growth opportunities, particularly in the digital and green economy sectors. In this regard, Malaysia positions itself as a key investment hub for Singaporean businesses due to its diversified economy. Against this backdrop, Singapore and Malaysia are working collaboratively to advance the JS-SEZ and other bilateral initiatives aimed at strengthening economic growth, improving connectivity, enhancing supply chain integration, and creating employment opportunities, therefore unlocking Southeast Asia's significant economic potential. Building on this momentum, SCCCI and Maybank will collaborate on initiatives aimed at promoting economic development, investment and trade, with the JS-SEZ as a strategic focal point. This will include jointly organising meetings, visits, conferences, workshops and networking events, while launching new initiatives to advance shared objectives. In addition, Maybank will provide tailored solutions including green lane financing, trade finance, cash management, and environmental, social and governance-linked products, and facilitate faster account onboarding for businesses. SCCCI members will also benefit from capacity-building programmes in areas such as sustainability, halal advisory, and financial services, supported by dedicated advisory services from Maybank's JS-SEZ Desk. The MoU is expected to benefit an estimated 5,000 SCCCI corporate members. SCCCI president Kho Choon Keng said this strategic partnership between SCCCI and Maybank strengthens its members' competitiveness for the future. 'In the face of an increasingly complex and rapidly changing business landscape, strong financial capabilities and deep regional insight are critical. 'By combining SCCCI's business network with Maybank's financial strength, we will help our members and local businesses access cross-border financing, build ESG competencies, and gain valuable market insights. Together, we will open up new economic opportunities and help our members and businesses succeed in Malaysia and across Southeast Asia,' he said. The SCCCI-Maybank Mid-Year Business Forum: Outlook 2025 held in Singapore today highlighted the momentum of this collaboration.


The Sun
7 hours ago
- The Sun
Bank Negara likely to maintain OPR at 2.75% for rest of year: AmBank chief economist
KUALA LUMPUR: AmBank Group expects Bank Negara Malaysia (BNM) to maintain the Overnight Policy Rate (OPR) at 2.75% for the remainder of the year, citing current economic conditions as supportive of the existing rate. AmBank Group chief eonomist Firdaos Rosli said the current OPR level is appropriate and no adjustments are anticipated in the near term. 'We believe the current OPR of 2.75% is adequate. Given the prevailing economic landscape, we do not foresee any changes in the coming months. It is likely to remain unchanged through the end of 2025,' he told reporters at the National Economic Forum 2025 today. However, Firdaos cautioned that the outlook for 2026 may differ, depending on external developments. 'There is still considerable uncertainty surrounding economic conditions in the United States and other key markets. The situation could evolve in ways that impact our projections,' he noted. On Malaysia's economic performance, Firdaos said that second-quarter gross domestic product (GDP) growth may moderate slightly to the lower end of the 4% range, following a decline in the Industrial Production Index (IPI). Malaysia's IPI grew by just 0.3% year-on-year in May, a notable slowdown from the 2.7% expansion recorded in April. 'Given the slowdown in industrial output, GDP growth for Q2 could come in closer to 4%, although still within the targeted range. External trade has remained relatively resilient, which supports overall performance,' he said. He attributed this resilience to front-loading activities, particularly among exporters shipping goods to the United States and other international markets ahead of potential trade disruptions. Firdaos pointed out that the strong 4.4% GDP growth recorded in the first quarter was likely boosted by early festive spending, some of which carried into the second quarter. 'Consumer spending has remained stable, especially with the Hari Raya period falling within the quarter,' he said. AmBank's full-year GDP forecast stands at 3.8%, slightly below the World Bank's projection of 3.9%. 'We are anticipating a general economic slowdown, primarily driven by external headwinds. Consumer and investment confidence remain somewhat subdued, and we expect this trend to continue in the near term,' Firdaos said. While not attributing the slowdown to any specific policy or shock, he emphasised the broader sentiment-driven nature of the deceleration. 'It's a general, broad-based slowdown – not due to any one specific factor such as tariffs – but rather an accumulation of uncertainty in the external environment,' he said. Tariffs, however, remain a key area of concern. 'In my view, tariffs continue to pose a significant uncertainty in the global trade landscape. The United States is taking a bilateral approach, and it's still unclear how other Asean countries will be treated under this policy direction,' he said. Firdaos noted that countries such as Vietnam and Indonesia have already received official communication from the US, while Singapore has not. Malaysia, he said, has also received such correspondence, with negotiations ongoing and expected to continue until August. 'There is a possibility that the negotiation deadline could be extended, which keeps sentiment cautious among businesses and investors,' he added. In light of this uncertainty, Firdaos said, companies may accelerate trade activities to hedge against potential tariff hikes. 'This cautious sentiment is a key reason behind the expected slowdown. Businesses and consumers are taking a more conservative stance amid unresolved global issues.'