Malaysia

KUALA LUMPUR: The temporary suspension of tariffs by the Trump administration may provide a modest but meaningful boost to Malaysia’s gross domestic product (GDP), potentially lifting growth by between 0.2 and 0.8 percentage point (pp), according to CIMB Securities. The economic impact will depend on the duration of the pause and the outcome of the upcoming US-Malaysia trade talks scheduled for late April. Under a base case scenario where the United States maintains a reduced 10 per cent tariff for a 90-day period—from April 9 to July 8—before reinstating the original 24 per cent rate, Malaysia’s GDP could see an uplift of around 0.2 pp. “If the 10 per cent tariff is extended through the end of 2025, the upside could increase to 0.6 pp. In the most optimistic scenario—where tariffs are fully removed after July—the GDP growth boost could reach 0.8 pp, potentially lifting full-year growth to 4.8 per cent,” the firm noted. However, CIMB Securities added that this still falls short of its earlier forecast of 5.0 per cent for 2025, citing persistent trade uncertainties amid renewed global tensions. The bilateral US-Malaysia negotiations later this month are expected to play a critical role in shaping the economic outlook. The talks may address ongoing disputes regarding Malaysia’s existing tariffs on selected US imports, including agricultural products, alcohol, and motor vehicles. Broader issues such as Malaysia’s approved permit system, halal import regulations, and foreign ownership restrictions may also be discussed. In turn, Malaysia may consider increasing imports of US goods—particularly defence systems, aircraft, and capital equipment—as part of a broader effort to narrow the trade imbalance. CIMB Securities stated that if the talks yield positive outcomes, they could enhance strategic bilateral ties and support trade growth in the second half of the year. “Despite the potential upside, we are maintaining our 2025 GDP forecast at 4.0 per cent for now, given the unpredictable nature of the Trump administration’s trade policies and uncertainties surrounding the negotiations. A breakdown in talks could reignite trade tensions, dampen investor sentiment, and curb global trade flows,” the firm warned.–BUSINESS TIMES

Prime Minister Datuk Seri Anwar Ibrahim has warned that escalating trade tensions between the United States and China could disrupt Malaysia’s export-driven economy and strain its critical trade and investment relationship with Beijing. Speaking at the Kelantan state-level Aidilfitri Madani 2025 celebration at Pantai Irama on Friday, Anwar said the US move to impose steep retaliatory tariffs on several countries—including a now-suspended 24% levy on Malaysian imports—signals broader volatility that may destabilise Asia’s trade ecosystem. “This situation not only affects China’s economy, but also has repercussions for Malaysia,” Anwar said. “When high tariffs are imposed on China, our trade and investment ties with the country are inevitably affected.” He acknowledged that while Malaysia has temporarily been exempted from the latest US tariff wave, the larger implications of the trade war—particularly on China, Malaysia’s largest trading partner—cannot be ignored. “As a trading and exporting nation, we are highly vulnerable to global trade disruptions. If China’s export and investment outlook weakens, the ripple effects will reach our shores too,” he added. US President Donald Trump recently announced a 90-day suspension of higher tariffs on selected countries, including several ASEAN nations such as Malaysia. However, China remains a primary target, with a sweeping 125% tariff still in place. Previously, Malaysia was hit with a 24% reciprocal tariff, which has now been put on hold. Still, a 10% baseline global tariff continues to apply to all nations, except for China, which faces steeper penalties. Anwar emphasised that Malaysia must remain vigilant in navigating the shifting trade landscape, especially as it seeks to balance strong diplomatic ties with both superpowers. “The suspension is welcome, but the underlying threat remains. We must prepare for long-term volatility,” he said. As the US-China tariff standoff intensifies, analysts expect further fragmentation in global supply chains—posing new challenges for Southeast Asian economies that sit at the crossroads of major trade routes.

BUTTERWORTH: Penang is actively working to diversify and expand its export markets in response to the challenges posed by the US’s new retaliatory import tariffs. This strategic move aims to protect the sustainability of both the state’s economy and its broader contribution to Malaysia’s economic stability. Penang’s Chief Minister, Chow Kon Yeow, emphasised the importance of these efforts amid global economic uncertainty, with particular concern over the recent tariffs imposed by the US. These tariffs have already started to affect Penang’s export trade, which has been significantly tied to the US market. “During times like these, we must take more aggressive steps to empower local enterprises and ensure a resilient and sustainable supply chain,” said Chow during his speech at the Penang Aidilfitri Madani 2025 Celebration Ceremony held at the Picca Convention Centre in Arena Butterworth on Saturday. The event was attended by various key figures, including Prime Minister Datuk Seri Anwar Ibrahim. Chow highlighted that the US was Penang’s second-largest export destination in 2023, with a trade value of RM76 billion, or 17% of the state’s total exports. Despite these challenges, Penang continues to enjoy a trade surplus with the US, which stood at RM57.7 billion last year. “Although Penang was the nation’s top export contributor in February 2025, with a total export value of RM9.3 billion, the newly imposed tariffs are expected to have a significant impact,” Chow said. To address this, Penang has established the Penang Tariff Monitoring Task Force. This task force will act as a central platform to coordinate trade responses and engage with sectors impacted by the tariffs. Chow reiterated his commitment to fulfilling his role as Chief Minister by taking proactive and relevant measures to align with the state’s current needs, ensuring the continued development of Penang’s economy and social progress.–BERNAMA

KUCHING: Cahya Mata Cement Sdn Bhd, a key subsidiary of Cahya Mata Sarawak Bhd (KL:CMSB), is pushing forward with plans to significantly boost its cement production capabilities in Sarawak. The company has announced its intention to construct Clinker Line 2 in Mambong, pending approval from the Sarawak government. According to CMSB group general counsel Izzam Ibrahim, the project aims to solidify the company’s position as the largest clinker producer in Borneo. “We are in the process of securing regulatory approvals and are closely collaborating with the state government to greenlight the construction commencement,” Ibrahim stated during a press conference held at the CMSB Raya Open House. Clinker Line 2 is slated for completion by March 2027 and is expected to double Cahya Mata Cement’s annual production capacity from 900,000 to 1.92 million tonnes. This expansion is set to cater to Sarawak’s burgeoning infrastructure demands over the next 15 years. The development project will be executed in partnership with Sinoma Industry Engineering (M) Sdn Bhd, following a technical consulting agreement inked in November 2023. The collaboration encompasses the design, construction, and optimization of the clinker line, alongside enhancements to the existing production facility. Key features of the new facility include a waste heat recovery system capable of generating six megawatts of power, advanced dust filtration systems to slash emissions by 50%, and energy-efficient equipment designed to minimize carbon footprint. In parallel with its growth ambitions, CMSB remains resilient amidst ongoing legal proceedings. Ibrahim affirmed that despite these challenges, the company has continued to achieve notable improvements in operational efficiency. “Our management’s steadfast commitment ensures business continuity and sustains stakeholder confidence,” Ibrahim asserted. Furthermore, CMSB is enhancing its commitment to sustainability by embarking on comprehensive Environmental, Social, and Governance (ESG) reporting, aligning with Bursa Malaysia’s mandatory guidelines. “This marks a significant step in our sustainability journey, underlining our dedication to responsible corporate practices,” Ibrahim added. Despite recent legal turbulence, including actions initiated by CMSB’s deputy chairman and director Datuk Seri Mahmud Abu Bekir Taib, Ibrahim emphasized the company’s focus on moving forward responsibly. “We are dedicated to accurate and transparent reporting, reflecting our unwavering commitment amidst external distractions,” he concluded.–BERNAMA

KUALA LUMPUR:  The Malaysia Semiconductor IC Design Park has inked strategic partnerships with Brazilian semiconductor design firm Chipinventor and Amazon Web Services (AWS), marking a new chapter in international collaboration within the semiconductor industry. The partnership, supported by the Brazilian Embassy in Malaysia and Brazil’s Ministry of Science, Technology, and Innovation under the Innovation Diplomacy Programme, aims to strengthen ties between Malaysia and Brazil in the fields of integrated circuit (IC) design and manufacturing. The initiative is set to drive joint investments, facilitate technology transfers, and further position Malaysia as a regional hub for semiconductor innovation. Chipinventor Expands into Asia via Selangor Chipinventor—a spin-off from Brazil’s renowned Wernher von Braun Center for Advanced Research—has chosen the Malaysia Semiconductor IC Design Park in Selangor as its base for Asian expansion. “This decision reflects the confidence global players have in Malaysia’s infrastructure, skilled talent pool, and strategic ASEAN location,” said Selangor Investment, Trade and Mobility Committee chairman, Ng Sze Han, during the Brazil x Malaysia Bilateral Semiconductor Industry Development Programme. He highlighted that Chipinventor’s cloud-based semiconductor design platform, powered by artificial intelligence and hosted on AWS Malaysia’s infrastructure, enables even non-engineers to design chips through an intuitive no-code interface. Local Startups Prove Capability Malaysian tech startup Alphaswift Industries, winner of the 7th Selangor Accelerator Programme (SAP) by the Selangor Information Technology and Digital Economy Corporation (Sidec), successfully designed and prototyped a silicon chip using Chipinventor’s platform. The chip is now ready for fabrication at Silterra, Malaysia’s leading semiconductor foundry—underscoring the potential of homegrown innovation. Developing a Semiconductor-Ready Workforce To cultivate local talent, the Advanced Semiconductor Academy of Malaysia (ASEM) is collaborating with Chipinventor to deliver industry-relevant training. Programmes like the National Semiconductor Excellence Programme (NSEP) and Global Semiconductor Exchange Programme (GSEP) will provide Malaysian students and professionals with hands-on skills in chip design, testing, and verification. The Malaysia Semiconductor IC Design Park said this partnership will not only enhance Malaysia’s digital ecosystem but also promote the adoption of cloud-based chip design platforms globally.