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Malaysia should intensify its trade relationships with nations beyond the United States, including China, to cushion the impact of tariffs imposed by the US government, former prime minister Tun Dr Mahathir Mohamad has said. In an interview with Bloomberg, Dr Mahathir criticised the protectionist tariff measures implemented by the Trump administration, stating that such policies would ultimately cause greater harm to the United States than to its trading partners. “The rest of the world will suffer, but America will suffer more because all those industries which were set up by Americans outside of America to take advantage of low costs,” he remarked. Responding to suggestions that any move to negotiate a reduction in tariffs might be construed by Washington as an admission of vulnerability, Dr Mahathir clarified that the brunt of the impact would be borne primarily by countries with significant export exposure to the United States. He emphasised that most of the international community was not implementing similar high tariff measures. “As such, we should increase our trade with the rest of the world. With China, for example. To a certain extent, we can mitigate the effect of Trump’s high tariffs by avoiding America,” he noted. Earlier this week, US President Donald Trump announced a 25% tariff on Malaysian exports, raising it from an initial 24% following a 90-day postponement. In April, Dr Mahathir had told Free Malaysia Today that the wide-ranging US tariffs—ranging from 10% to 49% and affecting approximately 60 countries—were likely to backfire. He warned that the measures would result in higher prices for goods within the US, thereby increasing the cost of living for American consumers. ‘We Cannot Hold the Past Against Japan’ Separately, Dr Mahathir addressed Japan’s wartime history, urging Malaysia to move forward from the atrocities committed by Japanese forces during World War II. Reflecting on his own experience during the Japanese occupation at the age of 16, he acknowledged the suffering endured but stressed that Japan had since transformed profoundly. “We cannot hold their past against them,” he said, adding that Japan’s rapid post-war recovery and economic ascendancy served as a valuable model for developing nations. “At one time, they were number two in the world. We thought that we should learn from them, we should emulate them, and we should aim to achieve what they achieved,” he added. -FMT

Mah Sing Group Bhd has announced the successful completion of its RM250 million sukuk murabahah issuance under its existing sukuk murabahah programme. This latest exercise underscores the group’s continued efforts to strengthen its financial position and support future growth through syariah-compliant financing instruments. In a filing with Bursa Malaysia, the property developer confirmed that the sukuk carries a five-year tenure and offers a fixed profit rate of 4.25% per annum, payable on a semi-annual basis. The sukuk is secured by assets owned by Mah Sing’s subsidiaries along with designated accounts, providing a level of assurance to investors. According to the group, the proceeds from this issuance will be used strictly for syariah-compliant purposes. These may include land acquisition, capital expenditure, strategic investments, and general working capital requirements across Mah Sing and its subsidiaries, as well as associate companies. The successful completion of this sukuk issuance reflects investor confidence in Mah Sing’s long-term strategy and its disciplined approach to financial management. -The Star

Malaysia’s aerospace industry is expected to record robust growth this year, with revenue projected to increase by up to 25% from RM25.1 billion in 2024, according to Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz. Speaking at a Malaysia Aerospace Industry Association (MAIA) event, Tengku Zafrul highlighted the nation’s continued progress in strengthening its position within the global aerospace landscape. Malaysia has already secured RM1.5 billion in approved investments this year and recorded aerospace exports totalling RM8.17 billion—figures he said underscore rising international confidence in Malaysia’s technical capabilities, resilience, and skilled workforce. “Our 30,000-strong aerospace workforce continues to excel across the value chain, from aircraft structure manufacturing and engine components to avionics, maintenance, repair and overhaul (MRO), and systems integration,” Tengku Zafrul said. “These milestones are made possible by the collaborative efforts between the government, academia, and industry leaders working in synergy to elevate Malaysia’s aerospace sector.” Tengku Zafrul also highlighted recent commitments from major Malaysian carriers, signalling strong momentum in fleet modernisation and strategic expansion. Malaysia Airlines has doubled its order of Airbus A330neo aircraft, exercising options for an additional 20 units and raising its total commitment to 40 aircraft. Meanwhile, AirAsia has inked an agreement to acquire 50 Airbus A321XLR aircraft, with an option for 20 more. These long-range, fuel-efficient aircraft are expected to support the airline’s ambition to penetrate long-haul, low-cost markets, particularly in Europe and North America. “These fleet expansion strategies are more than just investments in hardware,” he said. “They reflect broader confidence in Malaysia’s growing role as a regional hub for MRO services, parts supply, and aerospace talent.” -FMT

Selangor has once again demonstrated its position as Malaysia’s economic powerhouse by recording a gross domestic product (GDP) of RM432.1 billion in 2024, an increase from RM406.1 billion in 2023. This achievement marks the second consecutive year the state has exceeded the RM400 billion GDP threshold, solidifying its leadership in national economic performance. According to a statement by Invest Selangor Berhad, the state’s economic output accounted for 26.2% of Malaysia’s total GDP in 2024, rising from 25.9% the previous year. As the state government’s one-stop agency for investment promotion, Invest Selangor plays a key role in driving strategic economic initiatives and industrial development. Selangor also posted a GDP growth rate of 6.3%, outpacing the national average of 5.1%. The state contributed 32.9% to the country’s total manufacturing output and led the services sector with a 26.9% share of national performance in the segment. The services sector remained Selangor’s primary growth engine, contributing 61.1% to the state’s GDP, equivalent to RM263.9 billion, with a year-on-year growth of 6.3%. This expansion was underpinned by strong performance in wholesale and retail trade, food and beverage services, accommodation, utilities, transport and storage, information and communications, finance and insurance, real estate and business services. Manufacturing was the second-largest contributor, representing 29.1% of the state’s GDP and registering a 5.1% increase. This was driven by key sub-sectors such as electrical and electronics, food processing, vegetable and animal oils and fats, beverages and transport equipment. Selangor Menteri Besar Datuk Seri Amirudin Shari attributed the sustained economic momentum to the collective commitment across public and private sectors, civil society, and the wider community. He noted that the integration of modern infrastructure, a skilled talent pool and strong investor confidence continue to position Selangor as a premier investment destination. “Our continued progress is a reflection of the collective commitment and hard work of all stakeholders from the public and private sectors to civil society and the rakyat. Together, we have built a thriving ecosystem that not only attracts investment, but also creates quality jobs and uplifts communities,” said Amirudin. Invest Selangor chief executive officer Datuk Hasan Azhari Idris reaffirmed the agency’s focus on strengthening regional economic leadership. He highlighted the upcoming Selangor International Business Summit (SIBS) 2025 as a key platform to facilitate trade, investment, and global business connectivity across Southeast Asia. -The Star

Cathay Pacific is reinforcing its confidence in Malaysia’s aviation sector as its budget subsidiary, HK Express Airways, prepares to commence daily operations to Sultan Abdul Aziz Shah Airport (Subang Airport) beginning 1 August. This expansion marks a strategic extension of the carrier’s footprint in Malaysia, as it capitalises on the country’s growing demand for both passenger and cargo services. Robbie Blackwood, Area Head for Malaysia and Brunei at Cathay Pacific, expressed a positive outlook for the sector, citing resilient performance, particularly in Penang. “We’ve seen strong resilience in the Penang market, especially on the cargo side, which performed very well in the first half of this year. Agility is key. We’re constantly monitoring new route opportunities, and we have a really good team here who can identify that,” he told Business Times following the launch of the “Traverse with Paramount” campaign, a collaboration with Malaysian developer Paramount Property. Blackwood highlighted that Cathay Pacific’s network reach and operational agility enable it to effectively serve emerging markets and evolving cargo demands. “Passenger performance has also been encouraging, with leisure travel remaining strong. This year, corporate travel is making a notable comeback, and we expect customer demand to continue rising, although our capacity plans are still being finalised,” he added. Cathay Pacific acquired HK Express in 2019 and has since been expanding its regional operations, with Malaysia positioned as a key growth market. The introduction of Subang as HK Express’s second destination in Malaysia follows the launch of daily flights between Penang and Hong Kong in November 2023. The group is currently evaluating further expansion opportunities at other Malaysian airports, particularly in prominent tourist destinations, although specific plans remain undisclosed. “Malaysia is a key growth market for us as we expand across the region,” Blackwood said. At present, Cathay Pacific operates seven passenger flights and three freighter services weekly from Penang, supporting the state’s robust electronics export industry. HK Express also maintains a daily passenger route from Penang. In Kuala Lumpur, Cathay Pacific runs three daily passenger flights from Kuala Lumpur International Airport (KLIA). Subang’s proximity to central Kuala Lumpur and availability of evening departure slots offers a differentiated market opportunity, aligning with HK Express’s low-cost model. The route will be operated using narrow-body aircraft, likely from the Airbus A320 family, including the A321neo, although aircraft deployment has not yet been finalised. “Subang serves a slightly different market for us. Its proximity to the city centre is a major advantage, and the evening departure slots cater well to passengers wanting to fly after work,” Blackwood noted. “Currently, Cathay Pacific operates morning, early afternoon, and mid-afternoon departures from KLIA. Subang’s evening flight adds more flexibility for travellers.” In a separate initiative aimed at deepening local engagement, Cathay Pacific has partnered with Paramount Property for the ‘Traverse with Paramount’ campaign, marking its first collaboration with a Malaysian property developer. Blackwood described the partnership as a values-driven alignment. “Paramount focuses on what they can offer customers beyond handing over the keys to a home. We approach travel the same way, through exceptional service in flight, at the airport, during check-in, and in our lounges. From a values perspective, the partnership is a natural fit,” he said. The campaign will reward property buyers with 10,000 to 40,000 Asia Miles for purchases across eight participating Paramount Property developments. -The Strait Times