Latest news with #RM52bil
The Star
09-07-2025
- Business
- The Star
‘Penang will be hard-hit by rise in export tax'
GEORGE TOWN: With Penang accounting for a large part of Malaysia's exports to the United States, the new 25% tariff imposed by the Trump administration has raised concerns. Between January and May this year, Penang accounted for 55% of Malaysia's total exports to the United States, valued at RM52bil, says Chow Kon Yeow (pic). The Penang Chief Minister said a substantial share of these exports originated from multinational corporations operating in Penang, primarily shipping finished products or components back to their parent companies in the United States. 'Electrical machinery and equipment constituted 77% of Penang's exports to the United States, with a large share driven by the semiconductor industry,' he said. Chow said while semiconductors are currently exempted from the tariff, the broader 25% imposition still poses an economic risk. The new tariff is expected to impact Penang's highly export-orientated economy, which is deeply integrated into global value chains. He said variations in tariff rates across the Asean region could distort trade dynamics and influence future investment decisions throughout the region. He added that there was an urgent need for Putrajaya to continuously engage with its US counterparts to negotiate for a lower tariff rate. 'Attention must also be directed towards addressing non-tariff policies and trade barriers to safeguard Malaysia's competitiveness. 'Penang will continue to work closely with the Federal Government and industry players to safeguard the nation's economic interest,' he said. Chow said Penang has remained committed to improving infrastructure, streamlining processes, and reducing business costs to sustain its role in the global supply chain and ensure long-term economic resilience. Earlier, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said that the tariff rate announced by the United States was unexpected. He, however, said there was still time to negotiate before the 25% tariff comes into force on Aug 1. The rate, stated in a letter posted on US President Donald Trump's Truth Social platform, is 1% more than the 24% imposed previously and paused for 90 days. Apart from Malaysia, other countries to be slapped with 25% tariffs include Japan, South Korea, Tunisia and Kazakhstan. Other countries hit with US tariffs include South Africa (30%), Bosnia and Herzegovina (30%), Indonesia (32%), Serbia (35%), Bangladesh (35%), Cambodia (36%), Thailand (36%), and Laos and Myanmar (40%).
The Star
08-07-2025
- Business
- The Star
Aircraft deal sparks bid for bigger returns, says Loke
RIO DE JANEIRO: Malaysia's significant aircraft purchase orders, totalling US$20bil (RM84bil), provides an excellent opportunity for the country to attract more investments from the selling firms, says Transport Minister Anthony Loke. He added the heavy purchase orders paved the way for negotiations with manufacturers like Airbus to invest in Malaysia for training and boosting the supply chain. 'We want them to help make us a hub in this region. This will ensure that the purchase is not a one-way process. We will benefit in many other ways,' he said after the week-long working and official visits by Prime Minister Datuk Seri Anwar Ibrahim to several countries. Both Loke and Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz have accompanied Anwar on the trip to Rome, Paris and Rio de Janeiro. Other ministers who joined the visit were Foreign Minister Datuk Seri Mohamad Hasan, Defence Minister Datuk Seri Mohamed Khaled Nordin, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu, and Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said. Loke said he visited Toulouse in France, where the aircraft manufacturer is based, and was told that the waiting list for aircraft delivery stood at 8,000 orders. 'This is a long backlog to wait for our orders to be delivered. It's a good thing our PM was here to talk to Macron (French President Emmanuel Macron) to help speed things up,' he added. Malaysia, he said, also spoke to officials from Embraer, a prominent aircraft manufacturer in Brazil about the possibility of some purchases. It was reported that AirAsia reached a tentative agreement to purchase as many as 70 extended-range Airbus single-aisle jets that could reach US$12.3bil (about RM52bil). Malaysia Airlines (MAS) ordered 20 more A330neo widebody planes, in a deal worth US$7.5bil (RM31.7bil), according to calculations before industry discounts. Earlier, Anwar also spoke about aircraft purchases, saying: 'We cannot simply keep buying from Airbus alone. We need alternative suppliers too. 'We are working with AirAsia, which has ordered dozens of aircraft. We've had discussions with Amirul Feisal, the MD of Khazanah Nasional, and talks are ongoing between AirAsia and MAS regarding further purchases. We are choosing to diversify rather than rely solely on Western companies.' Anwar said Malaysia placed conditions that benefitted the nation: part of the production must happen in Malaysia, or a base must be set up in Malaysia, and products must be sellable to a number of other countries.
