Latest news with #BarjoyaiBardai
Sinar Daily
10-07-2025
- Business
- Sinar Daily
Malaysia must leverage its global semiconductor status
During negotiations, we must emphasise Malaysia's strategic value as a partner in the semiconductor industry. Photo for illustration purposes only - Pexels SHAH ALAM – Experts are calling on Malaysia to assert its strategic role as a vital partner to the United States (US) in global trade, particularly in the semiconductor sector, amid ongoing tariff negotiations. Malaysia University of Science and Technology (MUST) economics expert Professor Emeritus Dr Barjoyai Bardai highlighted that Malaysia, with over 50 years of experience in the industry, has become the world's sixth-largest semiconductor producer, contributing 13 per cent to the global market. He stressed that Malaysia's semiconductor partners are predominantly major American companies, reflecting a deep interdependence between the two nations. Malaysia University of Science and Technology (MUST) economics expert Professor Emeritus Dr Barjoyai Bardai 'They are heavily reliant on us when it comes to semiconductors. If we were to suddenly halt operations due to higher tariffs, the entire US semiconductor supply chain would be disrupted. 'That's why, during negotiations, we must emphasise Malaysia's strategic value as a partner in the semiconductor industry. 'At the same time, Malaysia should also position itself as a credible intermediary for the US to conduct international trade with China,' he told Sinar Harian. Previously, the US announced a 25 per cent import tariff on all Malaysian products starting Aug 1, a move seen as a clear signal that Malaysia must strengthen its trade diplomacy and boost its export competitiveness. In response, Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said on Tuesday that the Cabinet is expected to deliberate on the issue. Although Johari assured that there is still room for negotiation before the enforcement date, the remaining time, less than a month, presents a major challenge for the government. Barjoyai acknowledged that the US and China are engaged in a trade conflict, but highlighted that both nations remain economically dependent on one another. 'If the US stops trading with China, they lose access to a massive market. 'However, both sides are stubborn. This is where Malaysia can step in as a neutral hub. 'We have a real opportunity here, especially given Malaysia's central role in the rapidly advancing electrical & electronics (E&E) and semiconductor industries,' he added.
Straits Times
01-07-2025
- Business
- Straits Times
Support for Malaysians available as expanded Sales and Service Tax begins
Many of these support programmes have been around for years, with millions of Malaysians already benefitting from them. PHOTO: BERNAMA Support for Malaysians available as expanded Sales and Service Tax begins PETALING JAYA - With the expanded Sales and Service Tax (SST) kicking in on July 1, prices of many items are expected to rise. But it's not all bad news. There are a host of support mechanisms in place for not just the B40 but also M40 households to ensure they can cope. Government initiatives – from direct cash aid and electricity rebates to healthcare schemes and discount cards – are available to help ease the burden and stretch every ringgit further. Most of these require registration, which can easily be done online. Many of these support programmes have been around for years, with millions of Malaysians already benefitting from them. However, many remain unaware of the assistance available, says economist Professor Barjoyai Bardai. For M40 households earning below RM100,000 (S$30,321) a year, the support measures include the mySalam health takaful, which offers critical illness coverage and hospital income aid. The Skim Jaminan Kredit Perumahan (SJKP) also provides housing loan guarantees of up to RM500,000 for M40 and self-employed individuals. Additionally, the Kad Pekerja Madani gives unionised workers access to discounts of up to 30 per cent on essentials, travel and services. 'The problem with Malaysian consumers is their perception. 'They're quick to assume the worst, often thinking: 'What other burdens are going to be placed on my shoulders today?',' said Prof Barjoyai, adding that if people changed their mindsets and started looking for positives, they would see how these initiatives can really help. 'Yes, the government can always improve by, say, increasing the aid amount. 'But these programmes exist, and people should take advantage of them.' Prof Barjoyai suggested that the government consider tapping into widely-used platforms like WhatsApp to send information directly to the public. 'That's where people are most active, and a simple message highlighting the programmes could catch their attention.' THE STAR/ASIA NEWS NETWORK Join ST's Telegram channel and get the latest breaking news delivered to you.
The Star
01-07-2025
- Business
- The Star
Support available as expanded SST begins
PETALING JAYA: With the expanded Sales and Service Tax (SST) kicking in today, prices of many items are expected to rise. But it's not all bad news. There are a host of support mechanisms in place for not just the B40 but also M40 households to ensure they can cope. Government initiatives – from direct cash aid and electricity rebates to healthcare schemes and discount cards – are available to help ease the burden and stretch every ringgit further. ALSO READ: Most of these require registration, which can easily be done online. Many of these support programmes have been around for years, with millions of Malaysians already benefitting from them. However, many remain unaware of the assistance available, says economist Prof Dr Barjoyai Bardai. CLICK TO ENLARGE For M40 households earning below RM100,000 a year, the support measures include the mySalam health takaful, which offers critical illness coverage and hospital income aid. The Skim Jaminan Kredit Perumahan (SJKP) also provides housing loan guarantees of up to RM500,000 for M40 and self-employed individuals. Additionally, the Kad Pekerja Madani gives unionised workers access to discounts of up to 30% on essentials, travel and services. 'The problem with Malaysian consumers is their perception. 'They're quick to assume the worst, often thinking: 'What other burdens are going to be placed on my shoulders today?',' said Barjoyai, adding that if people changed their mindsets and started looking for positives, they would see how these initiatives can really help. 'Yes, the government can always improve by, say, increasing the aid amount. 'But these programmes exist, and people should take advantage of them.' Barjoyai suggested that the government consider tapping into widely-used platforms like WhatsApp to send information directly to the public. 'That's where people are most active, and a simple message highlighting the programmes could catch their attention.'
Free Malaysia Today
30-06-2025
- Business
- Free Malaysia Today
Iran-Israel conflict could see Malaysians pay more for groceries
Food prices in Malaysia could go up by 10% if global oil prices hit US$110, says Barjoyai Bardai. PETALING JAYA : Malaysians could end up paying more for groceries if tensions in the Middle East continue to escalate, economists have warned. Malaysia University of Science and Technology's Barjoyai Bardai, Putra Business School's Ahmed Razman Abdul Latiff, and Sunway University's Yeah Kim Leng say Malaysians will start feeling the pinch if the conflict between Israel and Iran were to push oil prices to US$120 per barrel. Such a surge would trigger a hike in transportation and food costs, they say. Global benchmark Brent crude futures closed at $72.34 a barrel on Friday, up some 3.6% in the week Barjoyai Bardai. 'Even if global oil prices hit US$110, food prices in Malaysia could go up by 10%,' Barjoyai told FMT. He said although Malaysia is a net oil exporter, it will still be vulnerable to supply chain disruptions, especially if Iran moves to block the Strait of Hormuz which is a critical passage for global oil shipments. 'Logistics costs will go up, supply will be limited, and prices will rise.' On Thursday, CNBC reported that crude oil futures rose more than 1% after Israeli prime minister Benjamin Netanyahu ordered the country's military to intensify attacks against Iran. On the same day, Prime Minister Anwar Ibrahim gave an assurance that the government will not raise the price of RON95 petrol, even if global crude oil prices were to increase sharply due to geopolitical tensions in the Middle East. Barjoyai praised the government's decision to maintain its current fuel subsidy structure, and its commitment to putting in place the targeted RON95 subsidy plan. However, he said, its implementation may have to be deferred. 'If oil prices go up, government expenditure will go up. Cost of goods will follow as businesses will factor in the higher transport costs,' he said. Ahmed Razman Abdul Latiff. Razman said high oil prices would benefit national oil company Petronas and boost the country's coffers. However, this would see an escalation in the government's expenditure to maintain the fuel subsidy. 'Fuel prices affect every industry. Operating costs will rise, and most businesses will pass that on to consumers. 'Energy drives everything from transportation to food and housing. Malaysians should prepare for a tighter second half of the year,' he said, adding that even if inflation stays under 3%, the B40 and M40 groups will feel the squeeze. Yeah Kim Leng. Yeah said Malaysia, as a net oil exporter, stands to benefit from higher oil prices. 'If oil prices go up, the increased revenue from Petronas could help offset the subsidy burden. But government expenditure will be higher than revenue,' he said. He said a similar scenario was experienced in 2022, when oil hit around US$100. 'Our subsidy bill nearly tripled from RM20 billion to RM30 billion to triple the amount. If oil hits US$120, we could see a repeat,' he said. Yeah also warned that attacks on oil infrastructure and facilities, particularly involving Iran and Israel, could trigger a global shortage. 'If the Middle Eastern producers reduce output or if shipping routes in the Persian Gulf are disrupted, we're looking at major supply shocks. Oil could easily shoot past US$100 a barrel,' he said. He said such a scenario would have broad inflationary effects and could see consumers tightening their belts which could cause the economy to slow down.
New Straits Times
27-06-2025
- Business
- New Straits Times
SST tweaks bring big relief for rakyat
KUALA LUMPUR: The government's move to fine-tune the Sales and Service Tax (SST) will not significantly affect its revenue collection but will have a positive impact on the people, said an economist. Professor Emeritus Dr Barjoyai Bardai, provost at Malaysia University of Science and Technology, said the expanded SST was expected to boost tax collection to RM51.7 billion in 2025, up from the earlier forecast of RM46.7 billion. "I don't see this (tax collection) being affected too much by the exemptions for the beauty sector, apples, oranges and dates, as well as the increased SST registration threshold from RM500,000 to RM1 million for leasing, rental and financial services. "At most, I believe that it would be around RM1 billion to RM2 billion. However, the tweaks will be a big relief for those on the ground." Barjoyai said the exemption for the entire beauty sector would help control inflation as personal care was a key expenditure for many people. "In May, the inflation rate for personal care stood at 3.7 per cent, so this is the right move," he said, citing Statistics Department figures. Barjoyai said the increase of the SST registration threshold to RM1 million would see many micro, small and medium enterprises exempt from paying the eight per cent tax on leasing, rental and financial services. "This is especially important in rural and suburban areas, and for small shops in apartments and flats. Their sales will not reach RM1 million a year." Still, he said, retailers in malls and those with many branches would likely be affected, though he did not believe they would immediately raise prices. "The retail sector is price-sensitive, and competition is fierce. I think they will absorb the increase in costs in the short run and only pass on the costs in the longer run." On the SST exemption for apples, oranges and dates, Barjoyai said this was appropriate as local fruits were not always cheaper than imported fruits. "Mangoes, rambutans and durians, for example, can cost a lot more than apples and oranges. "Overall, the tweaks are a good move, and it indicates that the government is listening to the people." Economist Dr Geoffrey Williams said the SST adjustments would not significantly alter the government's overall tax collection. "The SST will still be effective in improving government income to provide more money for priorities such as health, education and social protection." He added that exempting imported fruits and beauty services would keep prices steady and prevent disruptions to consumer behaviour. Consumers, however, must remain alert and ensure businesses did not take advantage of the situation by unjustifiably raising prices, he added. "Overall, it is a signal that the government is making modest changes and taking stakeholder views into account. "This is a positive approach to tax policy and should make implementation easier," he said. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said he believed the tweaks reflected the government's intention to strike a balance between financial discipline and taking care of the people's interests. "To some degree, it is a pragmatic move. Perhaps, there should be more time for consultation with industry players so that any final adjustments can be made before the rollout of such measures," he added.
