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MIDF Maintains 2025 Retail Sales Growth Forecast at 4.6%

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MIDF Amanah Investment Bank Bhd is holding firm on its forecast of a 4.6% growth in retail sales for 2025, moderating from a stronger 5.5% expansion in 2024. According to MIDF Research, the outlook remains cautiously optimistic, underpinned by a stable labour market, controlled inflation, and supportive fiscal and monetary policies. The research house highlighted that government initiatives such as direct cash aid, flexible access to retirement funds, wage hikes for civil servants, and an increased minimum wage will continue to support household spending throughout the year. “Despite the moderation, domestic consumption remains a key pillar of Malaysia’s economic growth,” MIDF Research noted in its latest report. The bank expects tourism recovery to further contribute to sustained retail momentum, particularly in key urban and tourist-centric areas. Retail trade in Malaysia recorded a 5.9% year-on-year (y-o-y) growth in February 2025, easing from 8.2% in January, based on the latest data from the Department of Statistics Malaysia. However, the broader distributive trade sector showed stronger gains, rising 5.1% y-o-y in February compared to 4.5% in January, buoyed by a rebound in motor vehicle sales and continued strength in wholesale trade. Wholesale trade grew 5.3% y-o-y in February, up from 4.8% in the preceding month — a positive signal for Malaysia’s broader retail ecosystem. While MIDF remains confident in the domestic growth narrative, it cautioned that external risks such as intensifying global trade tensions could weigh on consumer sentiment and spending patterns. “Geopolitical uncertainty continues to pose downside risks, but overall we expect Malaysian households to maintain consumption resilience, supported by ongoing policy measures and improving income prospects,” the research note stated.–BERNAMA

Investment & Market Trends, News

MDEC Launches Strategic Incentives to Accelerate Malaysia’s Digital Creative Industry

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The Malaysia Digital Economy Corporation (MDEC) has unveiled a suite of new initiatives aimed at elevating Malaysia’s digital creative industry, reinforcing the nation’s position as a competitive player in the global digital content space. Among the programmes introduced are the Digital Games Testbed, Animation Shorts Challenge, and Business in Metaverse — all designed to nurture talent, cultivate innovation and enhance international market access. MDEC chief executive officer Anuar Fariz Fadzil emphasised the sector’s potential to generate high-value employment, develop local intellectual property, and boost export revenue. “Often driven by passion and creativity, the digital creative industry attracts professionals who are deeply committed to their craft. MDEC’s programmes are designed to support these talents by encouraging them to build on their strengths, explore innovative ideas and turn their passion into commercially viable content for local and global audiences,” he said. With these financial incentive programmes, MDEC aims to strengthen the end-to-end value chain — from talent development to content commercialisation — while encouraging innovation that aligns with Malaysia’s digital economy goals. Since 2011, Malaysia’s digital content market has recorded significant growth, generating RM87.25 billion in revenue and RM11.18 billion in export sales. The industry has also created over 11,000 high-quality jobs for Malaysians. Looking ahead, Anuar reaffirmed MDEC’s dedication to shaping a resilient digital ecosystem that champions local innovation and entrepreneurship. “The newly announced incentives are aimed at driving sustainable industry growth, attracting international investment and positioning Malaysia as a prominent player within the global digital creative landscape — which we already are,” he said. The initiative comes as Malaysia continues to expand its digital economy blueprint, with MDEC playing a pivotal role in fostering a future-ready, digitally skilled workforce and a thriving creative sector anchored in innovation and global competitiveness.–BUSINESS TIMES

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Trump Suggests Potential Exceptions to 10% Tariff, Optimistic About Trade Negotiations with China

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US President Donald Trump hinted at possible exemptions to his recently imposed 10% tariff on most US trading partners, asserting that the tariff rate is “pretty close” to a baseline for nations seeking trade negotiations. Speaking to reporters aboard Air Force One en route to Florida, Trump suggested that there could be exceptions for certain countries for “obvious reasons,” although he did not specify what these reasons might entail or indicate any immediate shift in tariff policy. The President’s remarks come amid a turbulent week for global financial markets, which reacted sharply to the initial announcement and subsequent delay of higher tariffs on numerous nations. Trump’s administration had hastily enacted higher tariffs, only to backtrack hours later in response to concerns over potential economic repercussions. Despite the tumultuous market response, Trump remains steadfast in his strategy to leverage tariffs as a tool to bolster domestic manufacturing and increase federal revenue. Notably, while China faces a substantial 145% tariff rate, Trump intends to maintain the 10% baseline for most other countries, prompting a rush among foreign governments to secure favorable trade deals with the US. In light of recent market volatility, which saw significant fluctuations in stock and bond markets, Trump expressed confidence in the resilience of the US economy, remarking, “I think the markets were solid today. I think people are seeing we are in great shape.” He reiterated his belief in the strength of the US dollar as the global currency of choice, dismissing concerns over its stability. Regarding the ongoing trade dispute with China, Trump struck a hopeful note, predicting that “something positive is going to come” from negotiations with Chinese President Xi Jinping. He praised President Xi as “a very good leader, a very smart leader,” suggesting optimism for potential breakthroughs in resolving the protracted trade tensions between the world’s two largest economies. Despite the temporary relief offered to other trading partners, the imposition of high tariffs on China is expected to elevate the average US duty rate to historic levels, impacting an estimated $690 billion in bilateral trade. Both Washington and Beijing have escalated tariffs on each other’s goods, underscoring the intensity of their economic standoff while leaving room for further negotiations. In conclusion, while uncertainties persist amidst evolving tariff policies and global economic dynamics, Trump’s administration continues to navigate a delicate balance between protectionist measures and international trade relations, with significant implications for global markets and economies alike.–BLOOMBERG

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Taiwan Begins Tariff Talks with US

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TAIPEI:  Taiwan has held its first round of tariff negotiations with the United States, with both sides expressing interest in continuing discussions in the near future, the island’s government announced today. The talks come as Taiwan, a globashortlyl leader in semiconductor manufacturing and home to industry giant TSMC, faces a 32% tariff on its exports to the US. While labelling the duties as unfair, Taiwan moved swiftly to engage with Washington, proposing a zero-tariff regime alongside increased purchases and investment in the United States. According to a statement by Taiwan’s Office of Trade Negotiations, officials from both sides conducted the discussions via video conference, though the identities of the US participants were not disclosed. The dialogue focused on reciprocal tariffs, non-tariff trade barriers, and broader economic concerns — including export controls. “Both sides look forward to conducting follow-up consultations in the near future and jointly building a strong and stable economic and trade relationship between Taiwan and the US,” the office said. The US Trade Representative’s office has yet to comment, with the request for a statement made outside of Washington’s regular working hours. Earlier this week, US President Donald Trump announced a temporary easing of the newly imposed tariffs on numerous countries, while intensifying trade pressure on China. Taiwan has long sought a formal free trade agreement with the US, its key international supporter and arms supplier, despite the absence of official diplomatic relations. These latest talks mark a significant step in that direction. The island continues to face rising military and political pressure from China, which claims Taiwan as part of its territory. Taiwan’s government firmly rejects these claims, asserting that only the island’s people have the right to determine their future.–REUTERS

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Malaysia Secures Zero-Import Duties Deal with EFTA

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KUALA LUMPUR – Malaysia has secured a landmark agreement with the European Free Trade Association (EFTA) — comprising Iceland, Liechtenstein, Norway, and Switzerland — that will see the permanent elimination of import duties for Malaysian goods entering these markets. The signing of the Malaysia-European Free Trade Association Economic Partnership Agreement (MEEPA) is scheduled for June 2025. The Ministry of Investment, Trade and Industry (MITI) confirmed the development on Friday, noting that MEEPA will replace Malaysia’s existing arrangement under EFTA’s Generalised System of Preferences — a temporary scheme that could be withdrawn as Malaysia progresses economically. MITI Minister Tengku Datuk Seri Zafrul Abdul Aziz praised the agreement for offering much-needed stability and clarity, particularly as Malaysian exporters navigate uncertainty stemming from US-imposed tariffs. On 9 April, the United States implemented a 24% reciprocal tariff on Malaysian imports, which has since been paused for a 90-day period. “This agreement provides much-needed certainty for our exporters and strengthens Malaysia’s long-term economic ties with EFTA member states,” said Zafrul. “We are especially keen to expand trade in high-value goods and services.” Negotiations for MEEPA concluded on Friday, covering a comprehensive range of areas including trade in goods and services, investment, intellectual property, competition, government procurement, cooperation, sustainable development, and customs procedures. In 2024, total bilateral trade between Malaysia and EFTA countries amounted to RM14.4 billion. Malaysia’s key exports to the bloc included electrical and electronic (E&E) products, machinery, scientific instruments, chemicals, and rubber. Imports primarily comprised chemicals, machinery, E&E goods, scientific instruments, and metals. Beyond tariff-free access, MEEPA also paves the way for enhanced collaboration and knowledge-sharing between Malaysia and EFTA nations. The bloc is globally recognised for its expertise in research and development, particularly in renewable energy, science and technology, and high-precision industries. According to MITI, the agreement will allow Malaysia to tap into EFTA’s strengths through joint projects and capacity-building initiatives under memoranda of understanding — providing long-term opportunities for economic growth and development.–THE EDGE

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VinFast Partners with Six Distributors to Open 60+ Showrooms in Philippines

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PASAY, PHILIPPINES: At the 2025 Manila International Auto Show (MIAS), VinFast announced partnerships with six local distributors to establish new showrooms across the Philippines. This move marks a significant step in VinFast’s global dealership expansion strategy and reinforces its commitment to bringing smart, sustainable mobility solutions closer to consumers in Southeast Asia. VinFast announced partnerships with eight local distributors to establish new showrooms across the Philippines. VinFast’s new partners in the Philippines include Autoflare, Xentro Motors, Kar Asia, Semicon Motors, EV Tech, and Toncars. Under the agreement, Autoflare will launch 20 VinFast showrooms in 2025, with five set to open in Q2, ten in Q3, and five in Q4. Xentro Motors will develop at least 32 showrooms across its mall network and open three VinFast 3S (Sales – Service – Spare parts) dealerships within the year. EV Tech will open two showrooms, while Kar Asia, Semicon Motors, and Toncars will each launch one location. All six VinFast’s strategic partners are experienced players in the Philippine automotive distribution sector. These collaborations will enable VinFast to rapidly expand its presence in key regions including Metro Manila, Quezon City, and other major cities, laying a solid foundation for the company’s long-term growth in the market. VinFast’s new showrooms will follow the company’s global standards with modern designs, incorporating dedicated areas for product displays, customer experiences, sales consultations, and after-sales service. Each location will also be equipped with convenient EV charging infrastructure, ensuring flexible and efficient access to electric vehicles for customers. All eight strategic partners are experienced players in the Philippine automotive distribution sector. Ms. Duong Thi Thu Trang, Deputy CEO of Global Sales at VinFast, said: “Partnering with top distributors in the Philippines is a strategic step in VinFast’s journey to make electric vehicles more accessible throughout the region. With the support of these experienced local partners, we are confident in quickly building a strong distribution network that delivers comprehensive and distinctive experiences to customers.” This expansion of VinFast’s dealership network is part of its broader strategy to develop a comprehensive electric vehicle ecosystem “For a Green Future” in key Southeast Asian markets, including the Philippines and Indonesia. In addition to offering high-quality electric vehicles with attractive incentives—such as free charging during the initial phase—VinFast is also investing in service center development and collaborating with the strategic partner V-GREEN to expand the country’s charging infrastructure. Over the past year, VinFast has made significant strides in the Philippine market by launching a diverse product lineup and swiftly building a network of local partners to support infrastructure development. These efforts highlight the company’s well-defined approach and long-term commitment to becoming a global EV brand—with the Philippines and the broader region playing an important role in that vision.

News

China Escalates Trade War with US, Raising Tariffs to 125%

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In a bold move responding to the US’s ongoing tariff increases, China has announced it will raise tariffs on all US goods from 84% to 125%, effective April 12, 2025. This decision follows the White House’s recent clarification that tariffs on Chinese imports had reached 145%, further escalating trade tensions between the two countries. The Chinese Ministry of Finance made the announcement on Friday, stating that this latest increase is a direct response to the US’s decision to impose higher tariffs. The Chinese government also made it clear that it would no longer entertain any additional US tariff hikes, signaling that further increases from Washington would be disregarded entirely. According to the statement, the Chinese market can no longer accommodate US goods under the current tariffs, and the situation has become economically unviable for both sides. “Given that there is no longer any possibility of market acceptance for US goods exported to China under the current tariff levels, if the US side subsequently continues to impose tariffs on Chinese goods exported to the US, the Chinese side will pay no attention to it,” the Ministry of Finance stated. The move comes amidst rising frustrations over the ongoing tariff war, which has already put significant pressure on global trade. China’s decision to raise tariffs has had an immediate impact on financial markets. S&P 500 futures saw a decline, while the Hang Seng China Enterprises Index pared back its earlier gains. The US dollar also extended its losses, reflecting investor unease following China’s announcement. In a statement responding to the US’s recent tariff hikes, China’s Commerce Ministry expressed deep dissatisfaction with Washington’s approach, calling the actions economically meaningless and accusing the US of using tariffs as a “tool for bullying and coercion.” The ministry labeled the current situation as a “joke,” criticizing the US for treating tariffs as part of a “numbers game” that has little bearing on actual economic impact. This escalation in the trade war has significant implications not just for the US and China, but for the broader global economy. While the US has raised tariffs on Chinese goods to 145%, China’s new tariff rates on US goods will only intensify the already strained relations between the world’s two largest economies. The dispute is not only about trade imbalances but also the strategic competition between the two nations, particularly in the areas of technology, intellectual property, and geopolitical influence. Both countries have long used tariffs as leverage in negotiations, but with no immediate resolution in sight, the escalating tariffs are expected to have lasting effects on global supply chains, businesses, and consumers worldwide.–BLOOMBERG

News

Police Seize Over RM3.17 Billion in Assets, Arrest Eight Linked to MBI Ponzi Scheme

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KUALA LUMPUR:  The Royal Malaysian Police (PDRM) has seized and frozen assets worth over RM3.17 billion in connection with a large-scale Ponzi scheme involving the now-defunct MBI group. The operation, codenamed “Op Northern Star,” followed a series of cross-border raids conducted in March 2025, based on a Red Notice alert from Interpol. Inspector General of Police Tan Sri Razarudin Husain confirmed in a statement that the operation, launched on March 20, targeted assets believed to be proceeds of the fraudulent investment scheme operated by MBI from a neighbouring country. The police statement substantiates a report published by The Edge Malaysia in its March 31–April 6, 2025 issue, revealing that the Anti-Money Laundering Criminal Investigation Division (AMLA) of Bukit Aman led the crackdown, which sent shockwaves through Penang’s property sector. During the operation, eight Malaysian nationals – seven men and one woman, aged between 44 and 62 – were arrested. Among those detained were two businessmen and two lawyers holding the prestigious “Datuk” title. All suspects have been remanded for periods ranging from one to seven days to assist in investigations under Section 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Act 613). The police seized a wide range of assets, including over 600 bank and share trading accounts, which held more than RM1.16 billion. Additionally, 35 properties with an estimated value of RM2.01 billion were confiscated, along with high-end vehicles, luxury watches, designer handbags, jewellery, electronic devices, and various currencies in cash. Important documents were also seized, further supporting the investigation. The total estimated value of the assets seized and accounts frozen amounts to RM3.17 billion. Tan Sri Razarudin confirmed that all seized assets are believed to be the proceeds of illicit gains linked to the fraudulent investment activities. “PDRM will continue its investigations into individuals or entities suspected of being directly or indirectly involved in any activities related to illicit proceeds from this fraudulent investment scheme,” he added. The raids have uncovered new links between the MBI scheme and high-profile individuals, including property and share transactions involving listed companies. Seized documents reportedly include those related to the RM10 billion Penang World City (PWC) development in Bayan Mutiara, previously connected to Hemat Tuah Sdn Bhd, a company controlled by family members of MBI founder Tedy Teow. Authorities have also obtained documents related to investments in companies such as Mayu Global Group Bhd (formerly Atta Global) and HHRG Bhd (formerly Heng Huat Resources Group Bhd), both now under new management and ownership. Despite the extradition of MBI founder Tedy Teow to China in August 2024, investigations into the MBI Ponzi scheme appear far from over. These recent enforcement actions have reignited scrutiny into local entities and individuals who may still be involved in one of Malaysia’s largest financial frauds.

Investment & Market Trends, News

Xi Jinping’s Visit to Strengthen Trade and Regional Ties, Says Fahmi

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KUALA LUMPUR: Communications Minister Fahmi Fadzil has expressed confidence that the upcoming visit by Chinese President Xi Jinping will significantly bolster Malaysia-China relations, particularly in trade and regional cooperation. Speaking ahead of Xi’s official visit from April 15 to 17, Fahmi said Malaysia views the engagement as a milestone moment, underpinned by strong economic ties and a shared vision for closer people-to-people and diplomatic relations. “China has long been Malaysia’s largest trading partner, and as Asean chair this year, we have a great deal to discuss,” said Fahmi, at the Asean-China Media and Think Tank Forum. “Not only will trade relations be strengthened, but we also expect to deepen cultural and community-level exchanges.” Fahmi noted that Malaysia hopes to use Xi’s visit to send a clear and consistent message of cooperation, especially in the face of rising geopolitical uncertainty. “Globalisation is under scrutiny and re-evaluation, particularly after recent announcements from the White House,” he said. “Malaysia believes that longstanding trade ties and multilateral collaboration are the way forward.” Prime Minister Anwar Ibrahim had also cautioned yesterday that the US’ increasingly adversarial stance toward China could have far-reaching implications for Malaysia’s economy and its role within Asean. Amidst growing economic tensions between the world’s two largest economies, the Biden administration has paused tariffs for 90 days but raised duties on Chinese imports to 125%, up from 104%, in response to China’s 84% retaliatory tariffs on US goods. China has been Malaysia’s top trading partner for 15 consecutive years, with bilateral trade reaching US$190.24 billion (RM856.08 billion). Key Malaysian exports include integrated circuits, palm oil, computers, and plastic products. “This visit comes at a critical time, and we hope to build on past achievements to unlock new opportunities for both nations,” Fahmi said.–FMT

News

Why Trump’s Made-in-America iPhone Dream Faces Impossible Odds

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WASHINGTON: US President Donald Trump’s ambition to see iPhones manufactured on American soil is clashing with the stark realities of global supply chains and decades of industrial evolution. Although Apple Inc. has pledged to invest US$500 billion in the US over the next four years and the Trump administration plans to impose tariffs of up to 145% on Chinese imports, experts say the idea of domestically produced iPhones remains unrealistic in the foreseeable future. The US lacks the complex ecosystem that supports iPhone production—one that includes a vast network of specialised suppliers, engineering talent, and logistical infrastructure found in Asia, particularly China. “Boston is over 500,000 people. The whole city would need to stop everything and start assembling iPhones,” said Matthew Moore, a former Apple manufacturing engineer. “Millions of people are employed by the Apple supply chain in China.” The Scale Problem Apple’s Chinese manufacturing facilities are enormous. The Zhengzhou complex, dubbed “iPhone City,” employs hundreds of thousands and operates like a self-contained town—with dormitories, schools, gyms, and hospitals. Replicating such a setup in the US would be unprecedented. Meanwhile, Apple’s partners are building the world’s second-largest iPhone facility in India. The country is rapidly becoming a key production hub, now producing an estimated 35 million iPhones a year, enough to meet a large share of US demand. Skills Gap and Supply Chain Challenges Apple CEO Tim Cook has long argued that China’s advantage lies not in low labour costs, but in its concentration of skilled engineers and tooling experts. As early as 2017, Cook pointed out that the US lacked the number of tooling engineers needed even to fill a room, while China could fill football fields. Moreover, Apple’s complex supply chain relies on thousands of components and partners primarily based in Asia. Even the Mac Pro, assembled in Texas, relies on parts manufactured in China. Automation Isn’t the Answer – Yet While some suggest that Apple could sidestep labour shortages by building a fully automated, robotic plant in the US, industry experts say automation can’t yet match the adaptability or precision of human workers—especially when product designs and materials are constantly evolving. “You design the thing, rebuild the factory, and then you only have six months to sell it,” said a source familiar with Apple’s supply chain. “The pace of change makes it so much harder to automate.” Diversification, Not Repatriation Apple has been steadily reducing its reliance on China, shifting some production to countries like Vietnam, Malaysia, and Thailand—for devices like AirPods, Macs, and iPads. But for the iPhone, which sells over 220 million units annually and comes in multiple configurations, China’s scale remains unmatched. Even in India, Apple’s largest alternative production site, it has taken a decade to reach meaningful output levels. For now, while Indian-made iPhones are increasingly shipped to US shelves to circumvent tariffs, the dream of a fully American-made iPhone remains just that—a dream.–BLOOMBERG

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