18/09/2025

BIZ & FINANCE THURSDAY | SEPT 18, 2025

/thesuntelegram FOLLOW / Malaysian Paper

ON TELEGRAM m RAM

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HK leader pledges to boost economy, livelihoods

Singapore’s August exports much weaker than forecast SINGAPORE: Singapore’s non-oil domestic exports fell 11.3% in August from the same month a year earlier, government data showed yesterday, weaker than analysts’ estimates as exports of both electronics and non-electronics fell. The fall compared with a Reuters poll forecast for an annual rise of 1%, and followed a revised fall of 4.7% in July. On a month-on-month seasonally adjusted basis, exports fell 8.9%, also weaker than the median poll forecast of a 0.4% rise. Barclays economist Brian Tan calculated that core exports were down by 4% in August in month-on-month seasonally adjusted terms, with electronics exports rising 8.3% from July. “While the August slump in non-electronics exports may catch the eye of the MAS, it remains one data point in a year when the NODX data has been quite volatile, with many seeming declines turning out to be one-offs,” he said. The Monetary Authority of Singapore will hold its next quarterly review of policy in October. Enterprise Singapore said non-oil exports to Indonesia, the US and China declined in annual terms in August, while shipments to the EU, Taiwan and South Korea increased. Despite having a free-trade agreement and running a trade deficit with the US, Singapore has been slapped with 10% tariffs by Washington. Singapore’s exports to the US dropped by an annual 28.8% in August, following a 42.8% fall in July. While the city-state’s economy performed better than expected in the first half of 2025 due to front-loading to beat the US tariffs, authorities have warned of a second-half slowdown. Enterprise Singapore has forecast non-oil exports growth of 1% to 3% this year. Trade Minister Gan Kim Yong told a business conference that US tariffs on Singapore’s trading partners, most of which are set at higher rates, would also affect the city-state. “Our exports to other countries, which will be made into products to ship to the US, they will be facing higher tariffs, and in turn I think the demand will slow down and our exports to these countries will slow down,” he said. – Reuters JAKARTA: Indonesia’s central bank delivered another surprise interest rate cut yesterday, its sixth cut since it kicked off an easing cycle in September last year, saying economic growth needed to be strengthened. Bank Indonesia (BI) trimmed the benchmark 7-day reverse repurchase rate by 25 basis points to 4.75%, the lowest since late 2022. All 31 economists surveyed by Reuters had expected no change. The bank also cut its overnight deposit facility rate by 50 basis points and its lending facility rate by 25 basis points to 3.75% and 5.50%, respectively. Governor Perry Warjiyo reiterated

HONG KONG: Hong Kong leader John Lee pledged yesterday to boost the city’s economy, improve livelihoods and cement its role as an international centre, unveiling measures including developing a gold trading market. A former deputy head of police, Lee reaffirmed the city’s economic growth forecast of 2% to 3% for 2025 and highlighted Hong Kong’s role as a springboard for mainland China enterprises looking to expand abroad. It was the fourth policy address of his term. Lee said his “ultimate objective” was to improve livelihoods, “with better housing for members of the public, higher income for workers, enhanced care for the elderly, and greater prospects for young people.” Hong Kong’s small and open economy has felt the ripple effects of an economic slowdown in China and trade tensions between Beijing and Washington. The policy address comes amid Beijing’s push to bolster flagging economic growth amid sluggish consumer demand and a years-long property crisis. His presentation, which lasted nearly three hours, was thin on new major initiatives including housing but went into detail on government accountability and national security. Lee said the government was “expediting the development of new growth areas” by building an international gold trading market, developing fintech and green and sustainable finance. The city’s monetary authority, the HKMA, will encourage the banking sector, especially in mainland China, to establish regional headquarters in Hong Kong and expand into Southeast Asia and the Middle East, Lee said. The government will also expand o Govt to accelerate development of district next to Shenzhen, says Lee at yesterday’s press conference that BI would continue to assess the room for further cuts in an effort to lift economic growth. BI has had to balance the need to keep the rupiah currency stable and the need to support growth during the easing cycle. BI has now cut its main interest rate by a total of 150 basis points since September last year. Markets have been unsettled by two weeks of protests and unrest across many cities from late August and then last week’s abrupt sacking of respected finance minister Sri Mulyani Indrawati.

Lee delivering his annual policy address at Central Government offices yesterday. – AFPPIC

unveiled a stimulus package worth nearly US$1 billion (RM4.19 billion) for the fourth quarter, including food handouts and an infrastructure building programme that could create some jobs. Purbaya last week criticised BI for keeping liquidity conditions too tight, and moved more than US$12 billion of government funds from the central bank to commercial banks to be used for loans. Warjiyo emphasised yesterday that the banking system has ample liquidity to support loan distribution and economic growth, and urged banks to lower their interest rates. – Reuters stone’s throw from the Greater Bay Area, a Chinese government scheme to link Hong Kong, Macau and nine cities in the southern province of Guangdong. Lee also said that as part of measures to build Hong Kong into a global education hub, the number of non-funded places for non-local students would be increased to 50% from 40% of local student places. The government will also introduce licensing for eateries to permit customers to bring their dogs, with more than 240,000 households keeping 400,000 cats and dogs as pets, he said. This presents “an enormous consumption market”, he said, adding that pet-friendly restaurants will create new business opportunities. To boost births, Lee said taxpayers can claim a total of HK$260,000 (RM140,000) in allowance for each child in the first two years following childbirth. – Reuters

There have also been concerns about the central bank’s independence following a “burden sharing” deal that will see BI help fund state programmes. And Parliament is discussing changes that could strengthen the requirement for BI to support growth and allow parliament to evaluate board members and recommend their removal to the president. Southeast Asia’s largest economy grew 5.1% in the second quarter from a year earlier, the fastest pace in two years, but new Finance Minister Purbaya Yudhi Sadewa has said there were signs of slowing in the third quarter. Earlier this week the government its aviation industry by providing recycling and trading services of high-value parts, as well as developing a sustainable aviation fuel industry chain. The city will also attract more pharmaceutical companies to set up and conduct clinical trials and medical treatments for rare disease drugs, high-end cancer drugs and advanced therapy products. Lee said the government would accelerate the development of the Northern Metropolis project, which aims to provide homes for around 2.5 million people and create a new business district near the border with the mainland. Sandwiched between Shenzhen and Hong Kong, the Northern Metropolis was a focus of former leader Carrie Lam in 2021 when she announced plans to develop the area into an innovation and technology hub. The development will be a

Japanese exports to US plunge as tariffs bite TOKYO: Japanese exports to the US plunged nearly 14% in August as Donald Trump’s tariffs continued to bite, with yesterday’s official data also showing auto shipments were down more than a quarter. The figures marked the latest hefty fall since the US president unveiled his levies against most other countries that rattled markets and shaken up global trade. The 13.8% year-on-year drop in the value of goods going to the US was the heaviest in more than four years, according to Bloomberg. Auto exports tanked 28.4%, while auto parts fell 7.1%, Japan’s Finance Ministry data showed. Shipments of cars and other vehicles have seen similar falls since Trump began his trade war earlier in the year. The auto industry, which accounts for about a third of Japan’s exports to the US, has been suffering under a 27.5% levy. However, on Tuesday, lower tariffs on Japanese autos kicked in as the US implemented a recent trade pact between the two countries. Vehicles will now face a 15% toll, the same as many other goods. While the implementation of the trade deal marked a win for Japan, the levies will continue to cause huge pain for the nation’s industries. – AFP

Indonesia central bank delivers surprise rate cut