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South Korea Launches Emergency Measures to Counter US Auto Tariffs

SEOUL: South Korea has announced emergency support measures for its auto industry in response to the United States’ imposition of a 25% tariff on imported cars and light trucks, set to begin Thursday under President Donald Trump’s directive. Key measures include: Increased policy financing: Raised to 15 trillion won (US$10.18 billion) for 2025, up from 13 trillion won. Tax cuts: Auto purchase tax reduced from 5% to 3.5% until June 2025. Expanded EV subsidies: Boosted to cover 30%-80% of price discounts (up from 20%-40%), extended through year-end. Export diversification: Efforts to support market expansion in the “Global South.” Negotiation with the US: Aimed at avoiding disadvantageous treatment compared to other allies. South Korea’s auto exports to the US totalled US$34.7 billion in 2024, nearly half its global auto export volume. Automakers like Hyundai are trying to buffer the impact—pledging to maintain current US vehicle prices for at least two months, following a US$21 billion investment announcement last month. Industry leaders welcomed the support but expressed concerns that more domestic stimulus may be needed. Analysts caution that while tariffs may be a negotiation tactic, they could raise costs—particularly in the EV segment, which relies heavily on Chinese parts.

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Malaysian Glove Makers to Benefit from Potential US Tariff Hike on China

KUALA LUMPUR: Malaysian glove makers are poised to gain if US President Donald Trump follows through on his threat to impose an additional 50% tariff on Chinese goods. CIMB Securities Sdn Bhd stated that the potential tariff hike could enhance Malaysia’s competitive edge in the global glove market, especially in relation to Chinese producers. According to CIMB Securities, Malaysia accounted for 45% of the global glove market in 2024, while China held 28%. The firm highlighted three possible scenarios—bullish, base, and conservative—under the assumption that the Trump administration imposes the tariff. In any of these scenarios, Malaysian glove makers would benefit, as the tariff would make their products more attractive to US buyers compared to those from China. Malaysia currently enjoys the lowest US reciprocal tariff rate of 24% among major glove-producing countries, compared to China’s 34%, Vietnam’s 46%, Thailand’s 36%, Indonesia’s 32%, and Cambodia’s 49%, CIMB said. However, the firm also warned that while higher tariffs on Chinese gloves could drive US demand toward Malaysian products, this advantage may be offset by Chinese manufacturers shifting their focus to non-US markets, increasing competition in those regions. Furthermore, the uncertainty around policies and cost volatility could lead US buyers to adopt a more cautious approach, resulting in softer demand and reduced purchase volumes. CIMB Securities has maintained a “neutral” rating on the rubber glove sector due to the weak near-term outlook and the ongoing uncertainties in the operating environment. The firm’s top picks for the sector are Kossan Rubber Industries Bhd and Supermax Corporation Bhd, both rated “buy.”

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China advises Shein against shifting supply chain

Fast-fashion retailer Shein is facing opposition from the Chinese government regarding its plans to shift some production outside of China, Bloomberg News reported on Tuesday, citing sources familiar with the matter. China’s Ministry of Commerce has reached out to Shein and other companies, advising them against diversifying their supply chains by sourcing from other countries. The exact identity of the other companies contacted was not immediately clear. The ministry’s requests came in the context of US President Donald Trump’s announcement on reciprocal tariffs, which has led many firms to seek alternative strategies to avoid additional import levies. Shein did not immediately respond to a Reuters request for comment regarding the report. Trump’s unexpectedly harsh tariffs have caused significant disruptions in global markets, wiping out trillions of dollars in asset value and prompting China to retaliate with a 34% tariff on all US goods.

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CGS Malaysia Introduces Fractional Share Trading on Bursa Malaysia

KUALA LUMPUR:  In a landmark move to democratise investing in Malaysia, CGS International Securities Malaysia Sdn. Bhd. (CGS MY) has officially launched fractional share trading on Bursa Malaysia via its new digital platform, UP—marking the first time such a feature is available on the local bourse. Officiated by Malaysia’s Minister of Finance II, Datuk Seri Amir Hamzah Azizan, the launch underscores a key aspiration of the Malaysia MADANI Economy Framework to widen capital market access to the masses. “By removing critical barriers like high cost and minimum board lot requirements, this initiative allows anyone with a digital device and internet connection to own a stake in Malaysia’s top companies,” said Datuk Seri Amir Hamzah. “This market-first innovation is a testament to what’s possible through strong collaboration between regulators and market players.” Also present at the launch were top representatives from the Securities Commission Malaysia, Bursa Malaysia, and CGS International, including Carol Fong, GCEO of CGS International, and Azizah Mohd Yatim, CEO of CGS MY. Investing Made Simple with UP UP is CGS MY’s next-generation trading platform, designed with an intuitive user interface and equipped with award-winning insights, competitive fees, and a suite of educational resources. Aimed at young and first-time investors, UP enables users to build diversified portfolios with as little as $1. “Fractional trading is a game-changer,” said Carol Fong. “ASEAN’s young, enterprising population is eager to grow their income through smart investments. UP is here to support that journey—not just in Malaysia, but across the region.” The platform includes SaveUP, a regular savings plan that allows users to automate investments at their preferred frequency, reinforcing long-term wealth-building habits. Users can set personalised goals and start with a low monthly investment, making the stock market more accessible than ever. Empowering with Education To guide users through their investing journey, UP offers curated financial education through its ‘Discover’ and ‘Education’ sections. These feature simplified investing fundamentals and insights from CGS International’s research team, supporting informed decision-making. Boosting Financial Literacy with the ASEAN Investment Challenge The launch also coincided with the ASEAN Investment Challenge (AIC) 2025, a regional competition designed to promote investment literacy among students. Now entering its third edition, the challenge has expanded to the Philippines, making it the only student investment challenge in the region backed by all local exchanges in participating countries. “We hope to empower more young Malaysians and first-time investors through tools that make investing less daunting,” said Azizah Mohd Yatim. “Coupled with our educational efforts like AIC, we’re working to equip the next generation with the confidence and knowledge to secure their financial future.” UP is now available for download on the App Store and Google Play.For more information, visit: https://cgsi.com.my/up

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ASEAN SMEs Risk Losing US$237.5 Billion Without Sustainability Push

KUALA LUMPUR: ASEAN’s small and medium-sized enterprises (SMEs), which form 99% of the region’s business landscape, risk losing US$237.5 billion in potential revenue if they fail to embrace greener, more sustainable practices. This stark warning came from Bank Negara Malaysia (BNM) assistant governor Madelena Mohamed during her keynote address at the High-Level Dialogue on Supply Chain Resilience titled “Insights into Greening Value Chains for ASEAN.” “Transitioning SMEs is more than just about cutting carbon emissions or using cleaner technologies,” she said. “It is about future-proofing economies by improving resource efficiency, reducing costs, and building resilience against climate and other disruptions.” Citing the mounting pressure of net-zero targets across ASEAN member states, Madelena stressed that decarbonising regional value chains—particularly those involving SMEs—is not optional but essential for sustaining competitiveness, growth and long-term resilience. Tackling Structural Barriers Despite the urgency, Madelena acknowledged the structural limitations faced by SMEs, including financial constraints, lack of technical knowledge, and limited access to specialised support. To address these challenges, Malaysia launched the Greening Value Chain (GVC) programme in 2023, a pilot initiative under the Joint Committee on Climate Change (JC3). The programme blends financing with practical training and tools to help SMEs decarbonise their operations. “More than 330 SMEs have undergone technical training since the start of the programme, and nearly half have started to measure and report their greenhouse gas emissions,” she noted. The Role of Anchor Companies A core component of the GVC is the role of anchor companies—typically large corporations that integrate SMEs into their supply chains and support them with infrastructure, knowledge-sharing and financial aid. “Under the GVC, we’ve seen large corporates acting as sponsors, allowing SMEs to leverage their resources. This kind of collaboration makes the green transition feasible,” Madelena said. She outlined three pillars driving the programme’s success: collaboration, innovation and continuous improvement. “Alone, we can do so little; together, we can do so much,” she said, quoting Helen Keller to highlight the power of collective action. A Whole-of-Ecosystem Approach Madelena stressed that meaningful progress requires a whole-of-ecosystem approach where governments, corporates, financial institutions and SMEs work hand in hand. “A common platform enables each party to build on others’ expertise and experience. This is how we drive comprehensive and scalable solutions,” she said. Sustaining Long-Term Change Finally, she emphasised the importance of agility and adaptability in policy and practice. Sustainable transformation, she said, demands frameworks that evolve with SMEs’ needs and continuous commitment from all stakeholders. “Smart partnerships address resource constraints and foster a culture of innovation. But sustaining the change is imperative—we must stay agile, responsive, and committed.” As ASEAN eyes deeper regional integration and global supply chain prominence, the message from policymakers is clear: sustainability is no longer a ‘nice to have’, but a non-negotiable pillar of economic resilience.

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BYD Forecasts Record Q1 Net Profit

BEIJING: Chinese electric vehicle (EV) giant BYD is forecasting record net profit for the first quarter of 2025, driven by robust sales growth that saw the company ship more than one million vehicles between January and March. According to preliminary results released today, the Shenzhen-based automaker expects net profit to come in between ¥8.5 billion (US$1.2 billion) and ¥10 billion – nearly doubling from ¥4.6 billion in the same period last year. This marks a year-on-year growth of between 86% and 119%. “The company achieved record new energy vehicle (NEV) sales for Q1,” BYD stated in a filing to the Hong Kong Stock Exchange. In the first quarter alone, sales of pure electric passenger vehicles surged by 39% to 416,388 units. BYD had earlier announced that its total vehicle sales during this period had surpassed the one million mark for the first time. The company, whose slogan is “Build Your Dreams”, has experienced a strong sales trajectory in recent months. Its annual revenue in 2024 climbed to ¥777.1 billion, surpassing that of US rival Tesla. In addition to domestic success, BYD noted “substantial growth” in international NEV sales. However, geopolitical headwinds could challenge the company’s global ambitions. The escalating China-US trade tensions and broader friction between Beijing and Western capitals pose significant risks. Former US President Donald Trump has imposed 25% tariffs on all imported vehicles, alongside sweeping levies on Chinese goods. These come on top of earlier measures by predecessor Joe Biden, which restrict the use of Chinese technology in smart vehicles. In Europe, BYD faces scrutiny as well. The European Union is reportedly investigating whether the Chinese government provided unfair subsidies for BYD’s upcoming factory in Hungary, which is set to begin electric car production later this year.-AFP

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Malaysia to Send Officials to Washington to Discuss Tariffs by End-April

KUALA LUMPUR: Malaysia will send officials to Washington by the end of April to begin dialogue with the United States over the recently imposed 24 per cent reciprocal tariffs, Prime Minister Datuk Seri Anwar Ibrahim announced today. Minister of Finance II, Datuk Seri Amir Hamzah Azizan, later confirmed that the Malaysian delegation would depart for the US by month-end. “This is part of our soft diplomacy of quiet engagement. We will be dispatching our officials to Washington to begin the process of dialogue. There may be limited room to revisit the underlying intent, but there is still scope for adjusting the policy’s implementation,” said Anwar during his keynote address at the ASEAN Investment Conference 2025 titled “ASEAN 2025: Forging a Resilient and Inclusive Future.” “In the meantime, Malaysia will adapt, as we always have. Winds may shift, but we do not drift. Our trade diversification strategy is already gathering pace.” While affirming Malaysia’s commitment to remaining a steadfast trade partner to the US, Anwar stressed that the government will also take all necessary steps to safeguard the nation’s economic interests. “This includes engaging proactively with the US to achieve a mutually beneficial outcome, while at the same time diversifying and strengthening ties with other major trade markets across the European Union (EU), Asia, the Middle East, and Africa.” Anwar, who also serves as Finance Minister, said that trade between Malaysia and the US has long been a model of mutual benefit. “Our exports support not only growth here but also high-quality jobs across the United States. This commercial relationship has served both countries well, but these new measures may end up harming both sides.” Echoing the Prime Minister’s sentiments, Amir Hamzah emphasised the need for a civil and constructive discussion with the US to better understand the rationale behind the tariffs. When asked if Malaysia was panicking in response to the situation, he replied: “No. We are chill.” He added that while the US’ move was unexpected, Malaysia is taking a measured and prudent approach rather than reacting hastily. “Therefore, we will go to the US for an amicable discussion, to gain a deeper understanding of this issue, and to explore ways to reach a better outcome than the current situation. “For now, we should not panic or act in haste. We will do things the right way,” he said after the ministerial dialogue session on “ASEAN Macro Structural Policies: Reform Versus Expansionary Measures.” — BERNAMA

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Growth Strategies Take Centre Stage at ASEAN Investment Conference 2025

The ASEAN Investment Conference (AIC) 2025 kicked off today in Kuala Lumpur, bringing together regional policymakers, investors, and capital market leaders to chart a collective path towards resilient growth and inclusive development across ASEAN. Held over two days under the theme “Connecting Capital, Unlocking Opportunities and Driving Sustainability,” the conference convenes more than 700 influential participants including thought leaders, bankers, and fund managers to explore strategies that will deepen regional integration, mobilise capital, and unlock new growth avenues for the region’s 600+ million people. Hosted by the Securities Commission Malaysia (SC) in collaboration with AFFIN Group, CGS International Securities Malaysia, and RHB Banking Group, the conference comes at a pivotal moment as global markets face shifting dynamics and economic uncertainties. Delivering the keynote address, Malaysian Prime Minister Dato’ Seri Anwar Ibrahim emphasised the importance of regional collaboration and sustainable capital flows. Earlier in the day, he held a closed-door breakfast session with global fund managers overseeing a combined USD8 trillion in assets under management (AUM). Malaysia, as the ASEAN Chair in 2025, is positioning itself to lead regional initiatives focused on mitigating the effects of global trade shifts—including US tariffs—while promoting intra-ASEAN trade, and advancing growth in emerging sectors such as artificial intelligence and green energy. Key discussion areas included: Strengthening regional financial integration through fintech and digital banking. Enhancing cooperation with major economic partners such as China, Japan, and South Korea. Supporting sustainable development and economic resilience amid global headwinds. SC Chairman Dato’ Mohammad Faiz Azmi remarked, “ASEAN’s strength lies in its unity and shared purpose. In a time of global uncertainty, collaboration and mutual investment are key to unlocking the region’s full potential.”He added, “By deepening cooperation, we can harness ASEAN’s diversity and move collectively towards a more inclusive and resilient future.” A major milestone at the event was the launch of the ASEAN Simplified ESG Disclosure Guide for SMEs in Supply Chains (ASEAN SEDG) – Version 1.Developed under the SC’s Chairmanship of the ASEAN Capital Markets Forum (ACMF), the guide offers practical, step-by-step ESG reporting support for SMEs, helping them align with evolving sustainability standards while building resilience and competitiveness. It reflects the aspirations of ASEAN Vision 2040, which aims to transform all ten member states into sustainable, future-ready economies. Prominent speakers at AIC 2025 included: Senator Datuk Seri Amir Hamzah Azizan, Minister of Finance II, Malaysia H.E. Chee Hong Tat, Minister for Transport and Second Minister for Finance, Singapore Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of Investment, Trade and Industry, Malaysia H.E. Thomas Djiwandono, Vice Minister, Ministry of Finance, Indonesia H.E. Dr. Kao Kim Hourn, Secretary-General of ASEAN The event also featured insights from senior representatives of multilateral agencies including the World Bank, Asian Development Bank (ADB), and Asian Infrastructure Investment Bank (AIIB).

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China, Japan, South Korea Meet in Kuala Lumpur. Likely to discuss US Tariffs, Countermeasures

KUALA LUMPUR: China, Japan and South Korea, which have signalled alliances since the announcement of sweeping US tariffs, held their second trilateral meeting in just eight days after their first engagement this year, reflecting the urgency as Washington’s move has caused ripple effects globally. The meeting between the three economic powerhouses on March 30 came under the spotlight after the US President announced a baseline tariff of 10 per cent on all countries, with higher duties for some, including China, which now faces a 34 per cent tariff on imports, and Japan, hit with a 24 per cent duty. As for South Korea, it is bidding to lower the 25 per cent tariff rate. It is understood the meeting raised concerns over global and their respective economic outlooks, as tariff policies such as this hurt trade, business and consumer confidence, and ultimately strain diplomatic ties. Global markets took a route on Monday, reportedly wiping out more than US$10 Trillion from major markets. The Malaysian bourse reportedly lost RM93.15 Billion in market capitalisation. The trilateral meeting, held on the sidelines of the 12th ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM), saw the attendance of China Vice Minister of Finance, Liao Min; Japan’s Vice Minister of Finance, Atsushi Mimura; and South Korea’s Deputy Minister for International Affairs, Ministry of Economy and Finance, Choi Jiyoung. The three leaders are also likely to attend two  sessions of the ASEAN +3 Finance and Central Bank Deputies Meeting (AFCDM+3) today. This latest US move is expected to raise the total duties on Chinese goods to %$ per cent this year, while for South Korea, the Trump administration’s global reciprocal tariffs chart shows a 25 per cent rate. In response, China has fired back with retaliatory tariffs of 34 per cent on all US imports, effective April 10, according to international media reports. The +3 economies had previously convened in late March and hinted at a joint response to the escalating tariff tensions. The meeting marked the first economic dialogue in five years among the three Asian export powerhouses, who are seeking to bolster regional trade amid mounting US protectionism. At the March 30 meeting in Seoul, China, Japan and South Korea reaffirmed their commitment to trilateral economic and trade cooperation to tackle “emerging challenges”— a partnership now seen as increasingly vital in light of the US measures that have sparked fears of a global trade war. The three nations also agreed to accelerate negotiations on a trilateral free trade agreement, though concrete progress remains elusive. — BERNAMA

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Trump Threatens Additional 50% Tariffs on China

WASHINGTON: US President Donald Trump has issued a fresh warning to Beijing, threatening to impose an additional 50% tariff on Chinese imports unless China retracts its planned retaliatory measures. This move, announced via his Truth Social account on Monday, comes on top of a 34% tariff already set to take effect on April 9, potentially pushing total additional tariffs on Chinese goods this year to a staggering 104%, according to the White House. “If China does not withdraw its 34% increase above their already long-term trading abuses by tomorrow, April 8, the US will impose ADDITIONAL Tariffs on China of 50%, effective April 9,” Trump stated. The tariff escalation is part of Trump’s broader agenda to impose “reciprocal” tariffs on countries with significant trade surpluses with the US. The 34% hike announced last week already triggered a matching countermeasure from Beijing, set to take effect on April 10, along with additional export controls on rare earth elements. Since returning to office, Trump has also levied 20% duties on Chinese imports in response to China’s alleged involvement in the fentanyl supply chain. The White House confirmed that these new tariffs would compound earlier duties imposed during Trump’s first term, most of which were maintained by President Joe Biden, with additions in specific sectors. In his post, Trump accused China of “non-monetary tariffs” and “illegal subsidisation” of its companies. He further announced that all discussions with China would be suspended, although the US would proceed with negotiations with other nations that have requested trade talks.–AFP

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