30/10/2025

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THURSDAY | OCT 30, 2025

Stronger M’sia-China partnership under Belt and Road initiative KUALA LUMPUR: Malaysia remains committed to strengthening its economic partnership with China under the Belt and Road Initiative (BRI), Deputy Finance Minister Lim Hui Ying said. She said BRI has delivered measurable results since its inception, driving trade growth and supporting Malaysia’s transformation under the Madani economy framework, with the partnership continuing to generate tangible benefits for both nations. “The BRI, which Malaysia has supported since the very beginning, aligns perfectly with this vision (Madani economy). Over the past 12 years, BRI cooperation has delivered real, measurable results. “Trade between Malaysia and China grew from RM181 billion in 2012 to RM484 billion in 2024, with China remaining our largest trading partner,“ she said in her speech at the Parallel Financial Street Forum here yesterday. She highlighted that major infrastructure projects such as the East Coast Rail Link (ECRL), spanning 665 kilometres, stand as key examples of how BRI cooperation creates long-term economic benefits. “Businesses in manufacturing, logistics and industrial parks along the corridor will gain access to new markets, talent and investment opportunities,” she said. Moving forward, Lim said Malaysia aims to expand cooperation in high-value industries including electronics, semiconductors, automotive and aerospace. “Malaysia is well-positioned to serve as both a production hub and a springboard into global markets. “Under the Regional Comprehensive Economic Partnership (RCEP), Malaysia and China have also harmonised financial service rules, making cooperation more efficient and transparent.” Lim added that growing opportunities also exist in green finance, renewable energy and digital innovation, where Malaysia and China can combine expertise and investment. She said that BRI offers a strong platform to scale up investment in solar panels, electric vehicles, battery storage and clean transport infrastructure, in which Chinese companies already play an active role in Malaysia’s renewable energy ecosystem, bringing advanced technologies that support local growth. – Bernama

US-Malaysia trade deal offers stability and clarity

Ű BY KIRTINEE RAMESH newsdesk@thesundaily.com

Malaysia’s technology and ICT sectors, noting that Malaysia’s commitment to purchasing more US technology equipment will create demand for local ICT providers and system integrators - most of which are SMEs. “This will definitely help local ICT and technology-based SMEs. It’s a good push for digitalisation and will strengthen Malaysia’s position in the global tech supply chain.” Chin said the trade agreement should be viewed as a foundation for stability and future growth rather than an immediate economic boost. “It’s positive – at least now we know what’s coming rather than guessing. We can plan and move forward confidently,” he said. While large corporations, particularly in the semiconductor and mineral sectors, may see clearer benefits, Chin stressed that the real advantage for SMEs lies in predictability, supply-chain participation and long-term planning. “This trade deal may not bring instant rewards, but it gives SMEs a firmer ground to build on,” he said. “It sets a clearer framework for future exports and positions Malaysia’s SMEs to grow alongside the broader US-Malaysia trade relationship.”

o SMEs unlikely to see major short-term gains but can plan ahead: Association

PETALING JAYA: The recently signed United States–Malaysia Reciprocal Trade Agreement offers stability and clearer direction for exporters, but small and medium enterprises (SMEs) are unlikely to see major short-term gains, said SME Association of Malaysia president Dr Chin Chee Seong. He said maintaining the 19% tariff brings little change to export costs but offers stability and clarity for future planning. “While it doesn’t change much for SMEs, it gives assurance and helps us plan ahead – that’s good news for Malaysian exporters.” He noted that future outcomes could still depend heavily on evolving US policies under President Donald Trump’s administration, should shifts in trade direction occur. Chin said Malaysian SMEs are generally well prepared to meet US compliance standards, having long followed international requirements on product origin, sustainability and certification. “We’ve always adhered to compliance requirements. The only difference now is some additional layers of compliance. “However, SMEs that have yet to embrace environmental, social and Economic Leaders Week (AELW) here. Malaysian ambassador to South Korea Datuk Mohd Zamruni Khalid said this is because Apec, as a platform, has been promoting free and fair trade among member economies. “By early next year, we hope everything will be ready so that the FTA between Malaysia and South Korea will be in place. “Regarding this FTA, we really look forward to it because it has been under negotiation for a long time. We believe that the MKFTA, as we call it, will significantly increase trade and investment between Malaysia and South Korea,“ he told Malaysian reporters on Tuesday ahead of Prime Minister Datuk Seri Anwar Ibrahim’s working visit to the republic. Anwar, who is also the finance minister, will undertake a working visit to Gyeongju today as he leads Malaysia’s delegation to the Apec Economic Leaders’ Meeting (AELM), which kicks off tomorrow.

governance (ESG) standards will face more challenges,” he said. He added that compliance readiness varies across industries, with export-oriented SMEs in manufacturing and technology typically better equipped than smaller domestic producers. On export gains or cost savings, Chin said the unchanged tariff means exporters will not experience significant direct relief. “We still have to pay the extra tax, so there’s not much gain in terms of cost saving. “The semiconductor sector will continue to perform well, but since most semiconductor manufacturers in Malaysia are US companies, local SMEs won’t see major new advantages,” he added. However, he said, the agreement could attract new US investments into Malaysia, creating opportunities for local SMEs to participate in supply chains, logistics and supporting industries, including rare earth processing and electronics manufacturing. “For SMEs in logistics, transportation or who supply

components to larger firms, this deal could open more business opportunities,” he said. Chin highlighted non-tariff barriers as a key challenge for Malaysian SMEs, especially those in the food and beverage (F&B) sector. He urged the US to recognise and accept Malaysian Halal certification more openly to facilitate smoother export processes. “We hope the US can be more open to our Halal certification to ease market entry for F&B SMEs. “If there are too many restrictions or lengthy approval processes, that will be a barrier.” He added that other sectors such as furniture and manufacturing would benefit from stronger bilateral cooperation and tailored support under the trade framework. Chin said ease of financing remains crucial in helping SMEs take advantage of new export opportunities. He welcomed the extended SJPP loan scheme for export-oriented SMEs but said more financing support is needed as exports to the US grow. Chin expressed optimism about

Putrajaya-Seoul talks can be catalyst for more FTAs among Apec economies GYEONGJU: The conclusion of the free trade agreement (FTA) talks between Malaysia and South Korea could serve as a catalyst for more FTAs to be signed among member economies during the Asia-Pacific Economic Cooperation (Apec) Foreign journalists registering at the International Media Centre in the Bomun Tourist

Complex ahead of the Apec Economic Leaders’ Meeting, which begins tomorrow. – BERNAMAPIC

Apec. There should be free and fair trade among Apec economies.” On Monday, both countries announced the conclusion of the Malaysia-Republic of Korea Free Trade Agreement (MKFTA) negotiations, which cover, among other things, goods, services, investments, digital trade, the green economy, economic cooperation, and the bio-economy. The MKFTA will be Malaysia’s 19th free trade agreement to date.

South Korea is Malaysia’s eighth largest trading partner, with total trade amounting to RM109.68 billion, with Malaysia exporting mainly electrical and electronics products, liquefied natural gas, and petroleum products. Meanwhile, South Korea exported petroleum products, electrical and electronics products, chemicals, machinery, equipment and parts, and iron and steel products to Malaysia. – Bernama

Mohd Zamruni said last year’s trade between the two countries amounted to US$24 billion, marking the fourth consecutive year that trade has surpassed US$20 billion (RM83.7 billion). “We can imagine that with the FTA we are going to sign with South Korea, total trade between the two countries would be much higher than what we have seen. Hopefully, this will serve as a catalyst for other countries to sign FTAs with one another within