13/05/2025

BIZ & FINANCE TUESDAY | MAY 13, 2025

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Maritime sector not immune to tariff war

aims to limit China’s access while keeping advanced computing power within the US and its allies. However, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid opined that the intent to restrict access to US made AI chips remains unchanged; the focus now lies on how it will be implemented, as the current rulings (by Biden) are seen as cumbersome. “I suppose the government has been proactively managing the industry landscape quite well. The case in point would be the collaboration with Arm Holdings Plc for semiconductor-related licenses and know-how,” he added. Mohd Afzanizam said such collaboration would accelerate the ability of Malaysian companies to produce their chips. On whether Malaysia is investing enough in its semiconductor manufacturing capabilities to reduce reliance on foreign technologies, he said the answer remains uncertain. However, he noted that Malaysia’s long-standing presence in the outsourced semiconductor assembly and test segment suggests more needs to be done for existing players to scale and move up the value chain. Malaysia Semiconductor Industry Association president Datuk Seri Wong Siew Hai said Malaysia must safeguard technology, and companies must comply with all restriction requirements. – Bernama volume, the port operator said. “The interim uncertainties and adjustments may pause containerised trade growth, but a new equilibrium, Asia’s economic dynamism and Malaysia’s commitment towards multilateral trade will reestablish a new baseline for sustained future long-term growth. “We are keeping our guidance which we provided at the beginning of the year, which is low single-digit growth. “We think it is too premature to make a change now. “If there is a need, we will do so later,” the company said. Suria Capital Holdings Bhd managing director Datuk Ng Kiat Ming said the company’s subsidiary, Sabah Ports Sdn Bhd, continues to monitor the recent implementation of US tariffs and its potential impact on regional trade flows. As of now, he said, Sapangar Bay Container Port (SBCP) has not experienced any negative effects from the tariffs and the port has actually recorded a positive performance in the first quarter of 2025, with throughput volume rising 11% year-on-year for the January-to-March period. “Notably, March 2025 saw a 23% increase in volume compared to the same month last year, reflecting a healthy surge in regional shipping activity and a strong start to the year. “This growth is largely driven by intra-Asia trade and the increasing presence of regional shipping lines calling at SBCP,” he said. – Bernama

KUALA LUMPUR: Malaysia can have greater access to more advanced semiconductor chips following Washington’s move to rescind curbs on chip exports, a move that can propel it to move beyond its current strength in midstream packaging and testing into higher-value upstream chip design. Upscaling and eventual expertise in chip manufacturing would go a long way in solidifying Malaysia’s position as the world’s sixth-largest exporter of semiconductors. Chur Associates founder and managing partner Chris Tan said enhanced chip performance would also strengthen Malaysia’s capabilities in data centres, which already benefit from a cost-effective and resource-friendly environment. “(Donald) Trump’s new approach would require negotiations on a country-to-country basis, (and) his preference is for a deal eventually,” he said in response to the United States’move to rescind curbs on chip exports imposed previously by (Joe) Biden’s administration. This is very much like his move to impose tariffs, “which has drawn everyone to his table and not through a clear set of defined rules on sharing US AI technological advancement”, Tan said. It was reported last Wednesday that the Trump administration plans to revise a Biden-era rule that restricted AI chip exports, which measures undertaken by their government to safeguard their interests by imposing high tariffs on imports. “The established order of the global supply chain and well entrenched global manufacturing ecosystem dictate that companies seek places with the lowest cost of production; abundant and cheap labour; closest proximity to raw materials, components and target markets; good trade infrastructure; and favourable legal or institutional regimes. “They will likely seek countries with lower tariff regimes instead of quickly relocating to the US,” he added. He said this could give countries like Malaysia an opportunity to lure US manufacturing companies to Malaysia’s shores with the various incentives and favourable conditions being offered. Westports Holdings Bhd reported that tariff rates among key global trading nations escalated to unprecedented levels following decades of globalisation and the resulting inflationary pressures could curtail consumers’ purchasing power and consumption, elevating the risk of an economic slowdown or even a recession in major trading nations. Lower containerised trade could emerge as a near-term impact. However, regional trade realignment and Asia’s economic dynamism could partially mitigate the downward pressure on container

situation that demands “all hands on deck”. The tariff war is the most significant geopolitical development affecting the global economy, while the industry is still reeling from the heavy blow dealt by the Covid-19 pandemic, compounded by ongoing geopolitical tensions, volatile crude oil prices, and fluctuating freight rates. Adding to the strain are rising shipping costs, port and berth congestion driven by surging cargo volumes, and the lingering fragility of the global supply chain – all of which came sharply into focus not long ago. “Another repercussion from (US President Donald) Trump’s move is severe disruptions to the established order of the manufacturing supply chains which take a long time to build and nurture,” he said. Manufacturers face the looming threat of losing trusted suppliers from abroad as the former cannot withstand the financial crunch arising from having to pay much higher tariffs. “Although manufacturers tend to have multiple sources of suppliers in various locations, those without substitutes of suppliers who are as reliable and economically competitive as their established ones will stand to suffer the most,” Nazery added. Nazery said that US companies manufacturing abroad which are affected by the tariffs will not automatically embark on reshoring despite the rather protectionist systems in private healthcare, it is now being upgraded to Modern CARE21. “This upgrade is central to how we deliver care, streamlining operations, reducing paperwork, and enabling faster decision-making across departments,” Lim noted. He said the hospital also leverages electronic medical records, mobile engagement apps, and telemedicine platforms to improve care coordination and patient accessibility, adding that these tools have been especially beneficial for chronic disease management, allowing patients to consult doctors and manage their conditions remotely. Recognising the shift toward preventive and personalised healthcare, Lim highlighted that Columbia Asia has launched its Health Transformation Programme (HTP), a lifestyle-oriented wellness initiative focused on behaviour modification. “We are also rolling out a Prediabetic Care Programme designed to offer long-term, multidisciplinary care to patients at risk of chronic illnesses. “We are moving beyond traditional treatment to empowering patients to manage their health proactively. This is how we create better, longer-lasting health outcomes,” he said. As urban areas grow and new townships take shape, he noted that Columbia Asia’s approach continues to be rooted in accessibility. “Each hospital is designed for easy navigation, clustered services, and affordability.”

o Small firms risk financial ruin if cost of shipping cargo increases sharply

PETALING JAYA: Columbia Asia is setting sights on a new benchmark in private healthcare delivery in Malaysia, with a focus on data-driven expansion, cutting-edge technology and patient centric services. Regional CEO Tom Lim ( pic ) said the healthcare provider is evolving to serve rapidly growing communities and the private hospital is adapting its care model for long-term national impact. “Building on the momentum from 2024, Columbia Asia is intensifying efforts in 2025 with major expansions across its hospital network. A highlight is the upcoming launch of Columbia Asia Hospital, Batu Kawan in Penang, which will be the group’s 13th hospital in Malaysia. “The new facility will serve the fast developing township of Bandar Cassia, home to a growing population, industrial activity, and international interest in medical tourism. “This is a community that is expanding quickly but lacks comprehensive private healthcare. We saw a clear opportunity to fill that gap with a hospital designed around accessibility, affordability, and local partnerships,” he told SunBiz . Simultaneously, he noted that Columbia Asia is expanding its Cheras hospital to increase its capacity and introduce broader service offerings, further strengthening its position in the Klang Valley. KUALA Malaysia’s maritime sector, including its ports, is not immune to the fallout from the tariff war, which can potentially deal a death blow to small companies if the cost of shipping cargo increases exorbitantly. Well-known maritime industry analyst Nazery Khalid said if the high tariffs are implemented after the 90-day pause, large importers may be able to absorb the extra costs, but smaller firms that lack liquidity risk financial ruin – potentially leaving goods stranded at ports. What this means is that accepting high-tariff consignments could jeopardise smaller companies financially, leading to cargo pile-ups and costly detention charges as well as further burdening ports and maritime supply chains, he said. There is deep concern as Port Klang and Port of Tanjung Pelepas, which are ranked among the world’s 20 busiest container ports and deeply engaged in moving cargo globally, could face a business downturn. The escalating tension between economic superpowers the US and China arising from tit-for-tat tariffs has triggered negative ripple effects across the globe, severely affecting global maritime trade. And Malaysia, being a highly trade-dependent nation, cannot LUMPUR: Ű BY AIMIE SHAZRIE sunbiz@thesundaily.com

escape the repercussions from the hike in US tariff rate to 24%. The shipping industry – already hit by Covid-19, volatile oil prices, and global tensions, is now grappling with rising shipping costs, port congestion and a fragile supply chain. The tariffs could also disrupt long-established manufacturing networks, with smaller manufacturers potentially losing critical overseas suppliers due to financial strain. “Importers with deep pockets will pay the extra tariffs in addition to additional levies, but small companies without sizeable cash or liquidity will not pick up the goods and will leave them stranded at ports,” Nazery told Bernama in an interview recently. “This will result in cargoes being taken back to the ports of origin by the exporters/suppliers, failing which they will just leave the goods at the ports of destination (and) this will cause the ports to slap costly detention charges to the importers, resulting in cargoes being stuck and eventually pile up at ports,” he said. Nazery emphasised that this would burden the ports and cause strains along the maritime supply chains, and the stuck cargoes will take quite a while to clear. Once again, analysts said, the shipping industry finds itself in a

Columbia Asia expands services and tech

Malaysia to boost semiconductor expertise as US rescinds chip curbs

“Columbia Asia takes a multi-factorial approach when determining where to expand. We evaluate demographic trends, infrastructure readiness, and gaps in healthcare accessibility, using government and public data to design each hospital’s core services. “We are not just building hospitals, we study the communities that we are meant to serve. Every location is chosen for its potential impact, and every hospital is tailored to meet unique local health needs.” Furthermore, he said Columbia Asia continues to strengthen healthcare technology with the ongoing enhancement of its proprietary Hospital Information System (HIS), CARE21. “Originally introduced in 2007 as one of Malaysia’s first paperless