Latest news with #CallumChen
Business Times
08-07-2025
- Business
- Business Times
Malaysia races to avert tariff hit as businesses expect lower rate
[KUALA LUMPUR] With just weeks to go before a 25 per cent US tariff kicks in, Malaysia is intensifying efforts to negotiate a more favourable rate. Market observers widely anticipate a reduction, with some projecting a revised tariff as low as 15 per cent. Many believe the situation remains fluid, with analysts at MIDF Research citing ongoing negotiations by the Ministry of Investment, Trade and Industry (MITI) as a positive signal. 'Based on Vietnam's latest trade agreement with the US, we expect that it will be lower than the tariff set for Aug 1. We believe Malaysia could land around the 15 per cent level,' said MIDF in a report on Tuesday (Jul 8). Currently, a 25 per cent levy on Malaysian exports to the US is scheduled to take effect next month, up from 24 per cent announced on 'Liberation Day' (Apr 2). The higher rate applies broadly across categories, excluding existing sector-specific duties. Adding to trade tensions, US President Donald Trump also warned of an additional 10 per cent tariff on countries aligning with what he described as the 'anti-American policies' of the Brics bloc. The group's leaders began their latest summit in Brazil on Sunday. Malaysia is one of the partner countries of Brics, alongside Vietnam and Thailand, with Indonesia becoming a full member in January 2025. 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 Among Asean peers, Malaysia stands out as the only country facing a tariff hike. Cambodia, Laos, Vietnam and Myanmar have had their rates reduced, while Thailand and Indonesia remain unchanged. Beyond the region, Japan also saw its rate nudged up by 1 per cent to 25 per cent. Still room for negotiation Analysts view the 25 per cent figure as a deliberate signal – leaving the door open for negotiations to reduce the final rate. 'The slightly higher tariff can be seen as an indication that should Malaysia not be able to come to an agreement, that tariff will be enacted,' said MIDF. Even if the 25 per cent rate proceeds, MIDF said the impact on growth projections would be limited, as its models had already priced in the previous 24 per cent levy. MIDF expects Malaysia's gross domestic product growth to be around 4 per cent in 2025, and the FTSE Bursa Malaysia KLCI to end the year at 1,590 points. On Tuesday, the benchmark index fell nearly 0.5 per cent to close at 1,530.14, as 550 losers outpaced 399 gainers. Despite the government's active engagement with US officials, many businesses are treading cautiously. Wait and see The US is Malaysia's second-largest trading partner and top export destination. PHOTO: BT FILE Callum Chen, vice-president of the Malaysian International Chamber of Commerce and Industry, said most companies are unlikely to make a major relocation to, or invest in new ventures in lower-tariff countries, or even the US, in the medium term, unless significant opportunities arise in local markets. 'This caution is primarily due to the inherent risks associated with cost management, human resources and compliance in such transitions,' said Chen, who is also CEO of LH Plus, a major plastic products manufacturer that exports around 60 per cent of its output to the US. He expressed disappointment with the 25 per cent tariff announcement, having anticipated a more moderate outcome. Since the April tariff news, many of his US customers have delayed orders, awaiting clarity before the initial Jul 10 deadline. 'With increased uncertainties leading up to the Aug 1 implementation, customers are taking longer to respond, significantly impacting our business,' he told The Business Times. The US is Malaysia's second-largest trading partner and top export destination. Total trade between the two countries jumped nearly 30 per cent in 2024 to RM324.9 billion, with exports reaching RM198.7 billion and imports totalling RM126.3 billion. Semiconductor players may consider relocation Meanwhile, Wong Siew Hai, president of the Malaysia Semiconductor Industry Association, warned that if diplomatic engagements fail to yield positive results, the country's RM120 billion (S$36 billion) worth of electrical and electronics exports would be severely affected. 'If this happens, companies will need to decide whether to stay put in Malaysia or consider moving to lower-tariff countries,' he told BT. In a separate report, OCBC expects the downside risks to growth to trigger Bank Negara to ease monetary policy, forecasting a cumulative 50 basis point cut in the second half of 2025 to cushion the economy and pre-empt inflationary pressures. Malaysia has kept the overnight policy rate unchanged at 3 per cent since its last hike of 25 basis points in May 2023.
Korea Herald
15-05-2025
- Business
- Korea Herald
SK chemicals, LH Plus team up to expand sustainable kitchenware in Southeast Asia
Korean chemical manufacturer SK Chemicals said Thursday that it signed a memorandum of understanding with Malaysia's top kitchenware manufacturer, LH Plus, accelerating its expansion into the Southeast Asian market. Under the agreement, SK Chemicals will supply LH Plus with up to 2,000 metric tons of Ecozen, a biomass-based copolyester, and SkyPET CR, a circular recycled PET, by 2027. The materials are enough to produce approximately 100 million 1-liter water bottles and will be used to create new collaboration kitchenware products. Ecozen is known for its glass-like transparency and is BPA-free, making it ideal for food containers and cookware. SkyPET CR is produced through depolymerization technology, which allows waste plastics to be broken down at the molecular level and remade into high-quality PET, suitable for food-grade applications. Sk Chemical's partnership with LH Plus, which sells around 6 million plastic kitchenware products annually, marks a strategic move to address the growing demand for sustainable materials in kitchenware. 'SK Chemicals' wide range of sustainable materials strengthens our ability to meet growing demand for eco-friendly kitchenware,' said Callum Chen, CEO of LH Plus. Kim Eung-soo, head of Green Materials Business Division at SK chemicals, stated, 'As demand for eco-friendly plastics grows in Asia-Pacific, this partnership helps us deliver optimized solutions and expand our market reach.'
Yahoo
15-05-2025
- Business
- Yahoo
SK chemicals Signs MOU with Malaysia's Leading Kitchenware Manufacturer LH Plus - "Accelerates Expansion into Southeast Asian Market with Sustainable Materials"
SK chemicals Signs MOU with LH Plus to Supply 2,000 Tons of ECOZEN and SKYPET CR SK chemicals and LH Plus to Jointly Develop Kitchenware Products Using SK chemicals' Materials SHAH ALAM, Malaysia, May 15, 2025 /PRNewswire/ -- SK chemicals has partnered with Malaysia's leading company to expand its presence in the kitchenware materials market. SK chemicals (CEO and President: Ahn Jae-hyun) announces that it has signed an MOU with Malaysia's kitchenware manufacturer LH Plus (LH PLUS Sdn. Bhd.), to supply copolyester and circular recycled plastic materials. LH Plus, based in Malaysia, is a manufacturer of plastic kitchenware, selling approximately 6 million products annually, including food and beverage containers. It is the number one company in Malaysia in terms of production and sales volume in the kitchenware sector and supplies various products to renowned global brands. Under the MOU, SK chemicals will supply LH Plus with up to 2,000 tons of ECOZEN—a copolyester containing biomass—and SKYPET CR—a circular recycled PET made from waste plastics—by 2027. The 2,000 tons of raw materials can produce approximately 100 million 1-liter water bottles. The two companies will also collaborate on developing new kitchenware products using ECOZEN and SKYPET CR materials and expanding their reach among global brands. ECOZEN is a high-performance material known for its glass-like transparency, making it ideal for food containers where visibility is essential. It is free of bisphenol A (BPA), an environmental hormone, making it a safe and reliable choice for cookware and kitchenware. SKYPET CR, produced using advanced depolymerization technology, breaks down waste plastics at the molecular level and transforms them into raw materials, ensuring the same quality and properties as petroleum-based PET. Unlike mechanically recycled plastics, which are typically used in textiles and furniture, SKYPET CR can be used for a wide range of products that traditionally rely on petroleum-based PET, including food and beverage containers and tableware. It also addresses consumer concerns regarding hygiene and safety. Callum Chen, CEO of LH Plus, stated, "SK chemicals offers a diverse product portfolio, ranging from high-heat-resistant, transparent copolyesters to circular recycled plastic materials." He added, "This MOU will enhance our ability to meet the growing demand for sustainable kitchenware solutions, including recycled and bio-based materials." Kim Eung-soo, Head of the Green Materials Business Division at SK chemicals, stated, "The adoption of eco-friendly plastic materials, including recycled plastics, is steadily increasing across the Asia-Pacific kitchenware market." He added, "By partnering with LH Plus, we aim to deliver optimized solutions from materials to finished products and accelerate our expansion in the kitchenware market." View original content to download multimedia: SOURCE SK chemicals
Yahoo
14-05-2025
- Business
- Yahoo
SK chemicals Signs MOU with Malaysia's Leading Kitchenware Manufacturer LH Plus - "Accelerates Expansion into Southeast Asian Market with Sustainable Materials"
SK chemicals Signs MOU with LH Plus to Supply 2,000 Tons of ECOZEN and SKYPET CR SK chemicals and LH Plus to Jointly Develop Kitchenware Products Using SK chemicals' Materials SHAH ALAM, Malaysia, May 14, 2025 /PRNewswire/ -- SK chemicals has partnered with Malaysia's leading company to expand its presence in the kitchenware materials market. SK chemicals (CEO and President: Ahn Jae-hyun) announces that it has signed an MOU with Malaysia's kitchenware manufacturer LH Plus (LH PLUS Sdn. Bhd.), to supply copolyester and circular recycled plastic materials. LH Plus, based in Malaysia, is a manufacturer of plastic kitchenware, selling approximately 6 million products annually, including food and beverage containers. It is the number one company in Malaysia in terms of production and sales volume in the kitchenware sector and supplies various products to renowned global brands. Under the MOU, SK chemicals will supply LH Plus with up to 2,000 tons of ECOZEN—a copolyester containing biomass—and SKYPET CR—a circular recycled PET made from waste plastics—by 2027. The 2,000 tons of raw materials can produce approximately 100 million 1-liter water bottles. The two companies will also collaborate on developing new kitchenware products using ECOZEN and SKYPET CR materials and expanding their reach among global brands. ECOZEN is a high-performance material known for its glass-like transparency, making it ideal for food containers where visibility is essential. It is free of bisphenol A (BPA), an environmental hormone, making it a safe and reliable choice for cookware and kitchenware. SKYPET CR, produced using advanced depolymerization technology, breaks down waste plastics at the molecular level and transforms them into raw materials, ensuring the same quality and properties as petroleum-based PET. Unlike mechanically recycled plastics, which are typically used in textiles and furniture, SKYPET CR can be used for a wide range of products that traditionally rely on petroleum-based PET, including food and beverage containers and tableware. It also addresses consumer concerns regarding hygiene and safety. Callum Chen, CEO of LH Plus, stated, "SK chemicals offers a diverse product portfolio, ranging from high-heat-resistant, transparent copolyesters to circular recycled plastic materials." He added, "This MOU will enhance our ability to meet the growing demand for sustainable kitchenware solutions, including recycled and bio-based materials." Kim Eung-soo, Head of the Green Materials Business Division at SK chemicals, stated, "The adoption of eco-friendly plastic materials, including recycled plastics, is steadily increasing across the Asia-Pacific kitchenware market." He added, "By partnering with LH Plus, we aim to deliver optimized solutions from materials to finished products and accelerate our expansion in the kitchenware market." View original content to download multimedia: SOURCE SK chemicals Sign in to access your portfolio
