Latest news with #RM4bil
The Star
10-07-2025
- Business
- The Star
Govt urged to intervene as new US tariff brings jitters for businesses
JOHOR BARU: The 25% tariff imposed by the United States on Malaysia has sent jitters through the manufacturing sector, with many warning of cancelled orders and a potential wave of business closures. The furniture industry, for one, fears losing business to Vietnam, which faces a 20% tariff, while some other industries are even thinking of relocating. Malaysian Furniture Council president Desmond Tan said Vietnam, Malaysia's closest competitor in the global furniture market, produced a similar range of products and targets the same export destinations – especially the United States. The tariff for Vietnam was reduced to 20% from the original 46%. 'Since the announcement was only made yesterday (Tuesday), it is still too early to gauge the full extent of its impact on order volumes but the council will continue to monitor developments closely,' he said. Tan said the industry was also being squeezed by rising costs on the domestic front. 'These include the expanded Sales and Service Tax (SST), which now imposes a 5% tax on raw materials and directly drives up production costs. We also face higher labour expenses with the new minimum wage,' he added. The new Employees Provident Fund contributions for foreign workers would add further strain while fuel and electricity prices had also gone up, he said. The council is now urging Putrajaya to commence urgent talks with the United States to negotiate a reduction of the tariff. He also appealed for a rethink on the new taxes and price hikes to lower production costs, and for export incentives to protect jobs. The United States accounts for 60% of the country's total furniture exports, totalling RM2.039bil in just the first four months of the year. Malaysia also exports furniture to Singapore, Australia, Japan and the United Kingdom, among others. Muar Furniture Association president Steve Ong said the new tariff was a major blow, as Muar supplied more than RM4bil worth of furniture to the United States in 2024. It made up 67% of Malaysia's total furniture exports there, he said. 'The 25% tariff will likely lead to clients cancelling orders and local manufacturers scrambling to stay afloat. This is an urgent crisis,' Ong said. Another industry player urged the government to act swiftly. 'If nothing is done, a globally competitive industry like ours could shrink or even collapse,' said Goh Song Huang. 'At a time like this, we need clear, steady policies and a government that understands and responds to the real pressures we face.' In Penang, local industries are bracing for reduced demand with some considering relocation. 'Companies in Malaysia may be forced to shift parts of their production to countries with lower tariffs,' said Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai, adding that higher prices driven by import tariffs tend to suppress global demand. 'When the cost of imported goods rises, demand naturally falls. In the end, everyone along the supply chain, especially buyers of raw materials, will be affected,' he said. Earlier, it was reported that semiconductor exports would be exempt from the tariffs but it is unclear whether exemptions will remain under the new tariff regime. 'Vietnam's tariff is at 20%, which gives them a pricing advantage. US buyers may look for cheaper alternatives, putting Malaysian exporters at a disadvantage,' he said. Federation of Malaysian Manufacturing (FMM) Penang chapter chairman Datuk Seri Lee Teong Li said the 25% tariff would significantly impact exporters to the US. 'It's a substantial amount. For local manufacturers shipping to the US, it will reduce profit margins. Costs will rise, and customers may start sourcing from other suppliers. 'Even when the 24% tariff was announced in April, it was already a heavy blow. We had hoped for a reduction, not an increase,' he said. He noted that for now, the strategy was to ship out as much as possible before the Aug 1 deadline. Meanwhile, the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) is urging the government to temporarily lower the expanded SST to 4% to ease the financial burden on businesses and preserve Malaysia's competitive edge. Its president Datuk Ng Yih Pyng said the government should reduce the expanded SST rate from the current 6%-8% for the first two years of implementation. He said businesses, already grappling with higher operational costs driven by multiple government-imposed measures, would now have to face the the tariff headwinds and global uncertainties as well.
The Star
07-07-2025
- Business
- The Star
Asean News Headlines at 10pm on Sunday (July 6, 2025)
Malaysia: * Johor-Singapore Special Economic Zone set to transform all 10 Johor districts, says Onn Hafiz * Preacher arrested by cops over sex videos stripped of credentials in 2022, says MAIS * Anwar to meet Modi on sidelines of BRICS summit * Wife of man killed in Kedah shootout nabbed, gun found in house * Father and son killed in motorcycle crash with four-wheel drive in Tangkak * Potential RM4bil investments from Anwar's visit to France, says Zafrul * Another suspected gang member killed in shootout with cops in Kedah * Selangor lawmakers to receive briefing on Putra Heights gas explosion * Umno to take legal action against those defaming its leaders * Commando dies during military diving exercise off Kuantan coast * Licences of GDL, PSV vehicle drivers involved in crashes suspended pending investigations, JPJ says * Teacher accused of molesting 16-year-old student with disability * Malaysian devotional music group Inteam makes an impact in Algeria music festival * Bursa Malaysia seen trading range-bound with upside bias this week * Ringgit expected to trade within a narrow band of RM4.22 to RM4.23 against the greenback throughout the week * Term for Sabah assembly starts on first day of sitting, automatic dissolution on Nov 11, says Speaker * Perikatan HQ operations unaffected by lease expiry, operating out of temporary premises, says Azmin (L to R) Russia's Foreign Minister Sergey Lavrov, UAE's President Sheikh Mohamed bin Zayed al-Nahyan, Indonesia's President Prabowo Subianto, South Africa's President Cyril Ramaphosa, Brazil's President Luiz Inacio Lula da Silva, India's Prime Minister Narendra Modi, China's Premier Li Qiang, Ethiopia's Prime Minister Abiy Ahmed, Egypt's Prime Minister Mostafa Madbouly, and Iran's Foreign Minister Abbas Araghchi pose for a family photo during the BRICS summit in Rio de Janeiro, Brazil, on Sunday, July 6, 2025. BRICS leaders meeting in Rio de Janeiro on Sunday are expected to decry US President Donald Trump's indiscriminate trade tariffs, saying they are illegal and risk hurting the global economy. -- Photo by Pablo PORCIUNCULA / AFP Singapore: * Red Lions and naval divers join forces for Jump of Unity at Singapore's NDP 2025 * Malaysia's JPJ issues RM57,000 in summonses following VEP enforcement at Johor-Singapore border * Woman on Singapore's SMRT bus 190 injured after bottle thrown at vehicle leaves hole in window * Singapore's ministry of health studying 18 proposals to integrate TCM into public healthcare * Johor-Singapore Special Economic Zone set to transform all 10 Johor districts, says Onn Hafiz * High Court in Singapore orders Instagram seller to pay Louis Vuitton S$200,000 in damages over counterfeit goods * Tank collides into traffic light during Singapore's National Day Parade preview show * Global financial institutions fined for money laundering breaches in Singapore Indonesia: * Brazil opens BRICS summit in Rio, leaders of growing bloc however, gather, without Xi or Putin * Three dead, one missing and eight injured following landslides in Indonesia's West Java * 'We will not stop': Transport ministers says Indonesia vows to find 29 missing after ferry sinks * Bali continues agriculture push on shaky ground * No new missing victims found as search continues for sunken ferry in Indonesia's Bali Strait * Multiculturalism a strength for countries, but needs trust to flourish: Experts People take photos of the Supertree Grove at Gardens by the Bay in Singapore. -- REUTERS/Edgar Su Thailand: * Paetongtarn, Thaksin, and Srettha to present Thai soft power visions at 2025 forum * Most Thais believe Hun Sen has ulterior motives, unjustifiably predicts change of Thai PM * Thai Foreign Ministry urges Cambodia to return to bilateral border talks * Monsoon brings widespread rain to Thailand; Bangkok faces 70% storm risk * Thailand: Birthday bash for Moo Deng as she turns one Philippines: * Two earthquakes detected at the Philippines' Taal Volcano in the past 24 hours * Philippine Airlines launches direct Manila–Da Nang route * Kanlaon Volcano's unrest affects over 94,000 individuals – Department of Social Welfare and Development * ICC junks former Philippine president Rodrigo Duterte's plea to disqualify two of judges hearing his case * HIV surge in the Philippines amid poor sex education, policy gaps Brazil's President Luiz Inacio Lula da Silva meets with Vietnam's Prime Minister Pham Minh Chinh (left), ahead of the BRICS Presidential summit, in Rio de Janeiro, Brazil. -- Photo: REUTERS/Ricardo Moraes Vietnam: * US trade partners race for deals as Trump readies tariff notices on Monday (July 7) * Foreign visitors to Vietnam near 10.7 million in H1, half of full-year target * Two Asians among five richest self-made women in 2025; the women have a combined wealth of over US$95bil * Vietnamese Prime Minister pays floral tribute to President Ho Chi Minh in Brazil * Vietnam's laid-off communist officials face uncertain future Myanmar: * BRICS leaders to call for data protections against unauthorized AI use * Myanmar rejects UN report on child soldiers and ill-treatment of minors * China, Myanmar and Thailand join hands to eradicate telecom fraud networks * Thai authorities arrest 36 undocumented Myanmar nationals in Pha Phon Township, Thailand This photo shows a general view of US aircraft carrier USS George Washington (CVN-73) moored at Manila Bay in Manila. The nuclear-powered US carrier George Washington arrived off the Philippine capital for a port visit, as the two allies increase defence cooperation aimed at contesting China's sweeping claims in the South China Sea. -- Photo by Ted ALJIBE / AFP Cambodia: * BRICS nations voice 'serious concerns' over Trump tariffs * Opinion - Borders etched in ink: The 2000 MoU and Cambodia's irrefutable sovereignty * Two Poipet scam gang members arrested, defrauding victims of 300 million baht * Opinion - Sovereignty under threat: Thai Army's repeated provocations at Cambodia's border must end Laos: * Laos FM to attend the 58th Asean Foreign Ministers' meeting in KL * Lao central bank issues a warning on fake banknotes in circulation near the capital city * Laos, Vietnam, Cambodia plan tripartite disaster relief operation Brunei: * Three Bruneian women entrepreneurs depart for China-Asean TVET faculty training * Brunei to sponsor travel for Super League teams in upcoming season * Residents in Brunei's Kampong Panaga spruce up footpath China's Finance Minister Lan Fo'an (left) and Brazil's Economy Minister Fernando Haddad pose for a picture next to China's Premier Li Qiang and Brazil's President Luiz Inacio Lula da Silva after signing a bilateral agreement, in the sidelines of the BRICS summit in Rio de Janeiro, Brazil. BRICS leaders meeting in Rio de Janeiro from Sunday (July 7) are expected to decry Donald Trump's hardline trade policies, but are struggling to bridge divides over crises roiling the Middle East. -- Photo by Pablo PORCIUNCULA / AFP Aseanplus: * Malaysian devotional music group Inteam makes an impact in Algeria music festival * Meet Malaysia's latest pop yeh-yeh group LEV, group of three unleashes Malaysia's own-styled song in "Aku Bukan Bosan" * Ejen Ali 2: Hit movie scores big in Indonesia as versatile actor Azman Zulkiply continues to shine as voice actor * Man injured in suspected Golden Cat attack in Kuala Pilah * Global players eye Asean Foreign Ministers' Meeting * New push to fortify M'sia's borders amid rising security concerns * Talks on participation in nuclear weapon-free zone treaty showing progress, says Wisma Putra * More countries want to be part of South-East Asia's Treaty of Amity and Cooperation * BRICS 2025: Anwar calls for fairer global order, says Global South now a key player * BRICS a new frontier for Malaysian businesses, says Anwar / Joining hands for global resilience * Dalai Lama turns 90 and vows to keep defying China for years * Teenager stabbed in suspected machete attack in Sydney * Meta's AI lab is stacked with Chinese talent, drawing attention back home * South Korea to begin cash handouts to all citizens July 21 * Four killed in India's Ramgarh coal mine collapse * Death toll in Pakistan building collapse rises to 21 * Woman flown to hospital after lion attack at Australian zoo * Man charged with setting fire to synagogue in Australia * Japan govt shakes off doomsday talk as quakes rattle nation * Hiroshima teens relay atom bomb horror with art series * Seoul pulls out all stops for deal as US tariff suspension nears end * British tourist who fell into gorge rescued by police in Ladakh, India * Japan PM says won't 'easily compromise' to Trump on tariffs * China's EV price war dashes profit hopes of 90% of brands, AlixPartners says * China delivery rider graduated from top schools like Oxford inspires others to stay positive * Typhoon Danas: T1 signal to stay until Sunday (July 6) noon, says Hong Kong Observatory * Hong Kong restaurant Super Star closes last branch, leaving 50 workers in limbo * Foreigners may have to pay lump sum for health insurance in some parts of Japan * Japan tariff negotiator held in-depth talks with Lutnick, Japanese government says * Musk announces forming of 'America Party' in further break from Trump * South Korea prosecutors file request to detain ex-president Yoon / South Korea passes extra Budget before tariff deadline * The Great Inflatable Dome of China: 50m-high bubble blocks dust and noise from construction site * Cricket - 'Prince' Gill joins elite with 430-run haul at Edgbaston * Tennis - Djokovic hits century to lead veterans into last 16, Krejcikova crashes * Athletics - India's javelin hero Chopra leverages star power as crowds flock to self-titled event
The Star
07-07-2025
- Business
- The Star
SRC International meant for the people, but it was Najib who benefitted, court hears
KUALA LUMPUR: SRC International Sdn Bhd was intended to serve the rakyat but in reality, it was used to benefit Datuk Seri Najib Tun Razak, the High Court here heard. Lawyer Datuk Lim Chee Wee, representing the company, submitted that instead of fulfilling its intended public purpose, SRC International became both a vehicle and a victim of large-scale fraud, with the former prime minister as its primary beneficiary. He was submitting on Monday (July 7) during the hearing of SRC International's US$1.18bil civil suit against Najib and former SRC chief executive officer Nik Faisal Ariff Kamil, who is currently at large. ALSO READ: I expected briefing from authorities, says Najib on 'complicated' Swiss case involving frozen RM3.6bil SRC funds "The very funds misappropriated through SRC were pensioners' money from the Retirement Fund Inc (KWAP). "While SRC International suffered a devastating loss of US$1.18bil, the first defendant (Najib) personally received US$120mil into his own accounts and RM42mil, which is the subject of a separate suit. "He also utilised his role as the shadow director of the company, where he controlled the company's board via shareholder resolutions on important macro-decisions that ought to have been made by the SRC board itself,' he added. ALSO READ: Najib: SRC International board did not verify matters with me Lim also said that, as the shadow director of the company, Najib signed shareholder resolutions to approve and obtain a RM4bil KWAP loan and to disburse RM3.6bil from that loan for illegitimate purposes. "This culminated in Najib being the ultimate mastermind behind the catastrophic loss of US$1.18bil,' he said this before Justice Datuk Ahmad Fairuz Zainol Abidin. The hearing continues on Tuesday (July 8). In May 2021, SRC, under its new management, filed the suit, claiming that Najib had committed a breach of trust and power abuse, personally benefitted from the company's funds, and misappropriated the said funds. ALSO READ: Najib controlled all aspects of SRC, says former director It also seeks a court declaration that Najib is responsible for the company's losses due to his breach of duties and trust, and for Najib to pay back the RM42mil in losses that it suffered. Najib is currently serving a jail term in Kajang Prison for the misappropriation of RM42mil from SRC International. On Sept 2, 2022, he filed a petition for a royal pardon, which led to the Pardons Board halving his jail term from 12 to six years and reducing the fine from RM210mil to RM50mil on Jan 29 last year. – Bernama
The Star
07-07-2025
- Business
- The Star
‘RM4bil potential investments from PM's visit to France'
PETALING JAYA: Malaysia has successfully attracted potential investments worth RM4bil from French firms, following Prime Minister Datuk Seri Anwar Ibrahim's recent visit to France, says Tengku Datuk Seri Zafrul Abdul Aziz (pic). The Investment, Trade and Industry Minister said representatives from the Malaysian Investment Development Authority and Malaysia External Trade Development Corporation were also part of the Malaysian delegation led by Anwar. During the visit, Anwar met with 40 representatives from French industry players. 'Several French companies expressed their intention to invest a cumulative value of RM4bil in sectors such as high-tech manufacturing, aerospace, renewable energy, tourism and hospitality, as well as the digital economy and sustainable infrastructure. 'As for potential exports, RM675mil was generated for high-impact sectors such as aerospace, automotive, renewable energy, pharmaceuticals, digital economy, lifestyle and the halal industry,' the ministry said in a statement yesterday. 'All these are sectors targeted under the New Industrial Master Plan 2030 and Green Investment Strategy. 'Companies shared their intention to continue investing in Malaysia, driven by key factors such as a conducive, stable and dynamic investment ecosystem; encouraging global demand for Malaysian-made products; efficient domestic supply chains and a highly skilled workforce,' it added. Tengku Zafrul said the overall success of this mission reflects the continued confidence of many foreign companies in Malaysia's investor-friendly policies.
The Star
06-07-2025
- Business
- The Star
Potential RM4bil investments from Anwar's visit to France, says Zafrul
PETALING JAYA: Malaysia has successfully attracted potential investments worth RM4bil from French companies, following Prime Minister Datuk Seri Anwar Ibrahim's recent visit, says Datuk Seri Tengku Zafrul Aziz ( pic ). The Investment, Trade and Industry Minister said representatives from the Malaysian Investment Development Authority (Mida) and the Malaysia External Trade Development Corporation (Matrade) were also part of the Malaysian delegation led by Anwar. During the visit, Anwar met with 40 representatives from French industry. "Several French companies expressed the intention to invest a cumulative value of RM4bil in sectors such as high-tech manufacturing, aerospace, renewable energy, tourism and hospitality, digital economy and sustainable infrastructure. "As for potential exports, RM675mil was generated for high-impact sectors such as aerospace, automotive, renewable energy, pharmaceuticals, digital economy, lifestyle and the halal industry," it said in a statement on Sunday (July 6). All these are sectors targeted under the New Industrial Master Plan 2030 (NIMP 2030) and Green Investment Strategy. Companies shared their intention to continue investing in Malaysia, driven by key factors such as a conducive, stable and dynamic investment ecosystem; encouraging global demand for Malaysian-made products; efficient domestic supply chains; a highly skilled workforce; and investor-friendly government policies," it added. Meanwhile, Tengku Zafrul said the overall success of this mission reflects the continued confidence of many foreign companies in Malaysia's investor-friendly policies, supply chain ecosystem, competitiveness and economic growth potential. "The investment and trade potential to be realised will also provide business opportunities for local companies, including Small and Medium Enterprises, and more high-paying jobs for Malaysians. All these are key in driving our Madani economic transformation agenda," he said. The visit was part of the Prime Minister's official working visit to Italy, France and Brazil from July 1 to 8.
