Malaysia-NZ trade set to soar

 

 

 AUCKLAND: Trade between Malaysia and New Zealand is expected to increase by 50% in the next five years, says Datuk Seri Dr Ahmad Zahid Hamidi.

The Deputy Prime Minister said forging closer bilateral and trade ties with New Zealand was more crucial now in light of the changing global landscape.

“Our shared target to increase Malaysia-New Zealand trade by 50% by 2030 is not only achievable but necessary in a world where regional resilience matters more than ever,” he said during the Asean-New Zealand Business Council Engagement session held here yesterday.

He said trade agreements such as the Malaysia-New Zealand Free Trade Agreement (MNZFTA) and Asean, Australia, New Zealand Free Trade Area (AANZFTA) serve as a catalyst for boosting bilateral trade.

In 2024, he said the trade volume reached RM10.72bil (US$2.34bil), making Malaysia New Zealand’s second-largest trading partner within Asean.

“These numbers aren’t just statistics; they reflect confidence, connectivity and commitment between our economies,” added Ahmad Zahid, who is in New Zealand for a five-day working visit.

He said the MNZFTA also enabled 99.8% of New Zealand’s exports to enter Malaysia duty-free, with the AANZFTA also increasing exports to Asean by nearly 60% since 2010.

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“The AANZFTA is working well and should continue to be strengthened. Malaysia has also doubled its usage of AANZFTA benefits, from RM5.8bil in 2016 to RM12.9bil in 2023,” he added.

With the recent upgrade to AANZFTA and the momentum created through the Regional Comprehensive Economic Part­nership (RCEP), Ahmad Zahid said that both nations were better positioned to build a fair, modern and sustainable trade architecture.

AANZFTA, a trade agreement between Asean member states, Australia and New Zealand, came into force in 2010 and is a key pillar in both nations’ ties with South-East Asia.

The upgrade of AANZFTA came into force on April 21 this year to further reduce export barriers while boosting trade in the region.

Ahmad Zahid said Malaysia was looking at three key areas – sustainability, digital transformation and food security – to deepen trade collaboration between the two countries.

“New Zealand, with 87% of its electricity sourced from renewables, is a leader in green transition. This aligns closely with Malaysia’s commitment to achieving net-zero emissions by 2050.

“There is vast space for cooperation in clean energy, carbon markets and low-carbon technology,” he added.

On Malaysia’s part, Ahmad Zahid said the MyDigital agenda complements New Zealand’s strengths in ICT (information, communication and technology), offering opportunities for joint ventures in AI, smart cities, cybersecurity and digital trade governance.

“The agri-food sector also offers enormous potential. As Asean’s middle class grows and consumption patterns shift, New Zealand’s reputation for quality, traceability and innovation fits well with Malaysia’s strengths in halal certification and regional logistics.”

Ahmad Zahid, who is also Rural and Regional Development Minister, said it was crucial that the bilateral economic partnership continues to be grounded in human connection. 

“Thousands of Malaysian students have studied in New Zealand and tourism between our nations continues to thrive. 

“These exchanges are not just heartwarming, they are the glue that holds economic ties together, builds trust and creates long-term understanding,” he added.

On economic growth between New Zealand and Asean, Ahmad Zahid said it must be inclusive of micro, small and medium-scale enterprises (MSMEs) so that the latter was not left behind.

To achieve this, he said it must entail improving access to trade finance, digital tools, and capacity building between Asean member states and New Zealand.

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China, Australia strengthen green energy, tourism cooperation during Albanese’s official visit

  

China Australia photo: VCG

Australian mining and metals multinational BHP Group on Monday announced cooperation with Chinese leading battery manufacturers Contemporary Amperex Technology Co Ltd (CATL) and BYD to accelerate its electrification of mining operations, as China and Australia eye strengthened cooperation during Australian Prime Minister Anthony Albanese's ongoing visit to China.

Melbourne-based BHP said it has signed memoranda of understanding (MoUs) with CATL and FinDreams Battery Co, a fully owned subsidiary of BYD Group, to collaborate on battery development for mining equipment and locomotives including rapid charging infrastructure, as well as energy storage and battery recycling, according to two separate press releases on its website.

The moves come as Albanese is on an official visit to China. According to the Australian Financial Review, top executives from BHP, Rio Tinto, Fortescue and Hancock Prospecting are among scores of business delegates travelling with Albanese.

Speaking before a meeting between Australian iron ore miners and Chinese steelmakers in Shanghai on Monday, Albanese framed green steel as a way to grow Australia and China's decades-long trade relationship, Reuters reported.
"Achieving the goal of the Paris Agreement would require the decarbonization of steel value chains, presenting an opportunity for Australia and China to progress our long-term economic interests," he was quoted as saying.

"Rio Tinto is working closely with our Chinese customers to support the development of low-carbon steelmaking technologies, leveraging Australia's high-quality iron ore and China's manufacturing expertise to drive real progress on emissions reduction," Kellie Parker, Rio Tinto Australia chief executive, told the Global Times on Monday. 

"This visit is a valuable opportunity to deepen collaboration between suppliers and steelmakers. We welcome the opportunity to participate in these discussions alongside the Prime Minister," Parker said.

China has been taking concrete steps toward its commitment to peak carbon emissions before 2030 and achieve carbon neutrality before 2060. Over the years, the country has made remarkable progress in clean energy development, emerging as a global leader driving both domestic decarbonization and international sustainable development.

China and Australia have sound cooperation in traditional energy fields such as natural gas and coal, and green energy is an emerging field that has enormous room for cooperation, Ning Tuanhui, an associate research fellow at the China Institute of International Studies, told the Global Times on Monday.

"Australia has abundant deposits of minerals including lithium, cobalt and rare earths, while China has technological advantages and rapid development in the new-energy industry. Given their complementarity, strengthened green energy cooperation is beneficial to both sides," Ning said, noting that China is a critical partner for Australia to boost energy transition and address climate challenges.

In addition to energy, Albanese also reportedly highlighted tourism and sporting ties with China during his visit - his second official visit to China but the first since his re-election in May. On Sunday in Shanghai, Albanese visited the headquarters of Chinese online travel platform Trip.com and witnessed the signing of an agreement between Tourism Australia and Trip.com, according to information the platform sent to the Global Times on Monday.

Video footage posted by ABC News also showed that on Sunday, Albanese took part in a morning workout at the iconic Shanghai Bund, accompanied by Shanghai Port FC's Australian coach Kevin Muscat, team captain Wang Shenchao and others. He was presented with a special commemorative jersey.

Amid increasingly stabilizing and improving ties between China and Australia over the past three years under the strategic guidance of the leaders of the two countries, Albanese's visit to China marks a pivotal step in further advancing bilateral economic and trade relations, Song Wei, a professor at the School of International Relations and Diplomacy at Beijing Foreign Studies University, told the Global Times on Monday.

China has been Australia's largest trading partner, export destination and source of imports for 16 consecutive years. The China-Australia Free Trade Agreement, which came into effect in 2015, has significantly boosted trade, with total trade surpassing $210 billion in 2024, according to an article by Chinese Ambassador to Australia Xiao Qian published by the People's Daily on Sunday. 

Strengthening dialogue, expanding the scope of economic cooperation and increasing people-to-people exchanges will bring more tangible benefits to bilateral cooperation, Song said.

"Given the complex and volatile geopolitical landscape, frequent high-level exchanges like this visit are needed to build mutual trust and strengthen the resilience of bilateral relations," Ning said.

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BE LABEL-SAVVY TO STAY HEALTHY for organic food among health-conscious consumers

PETALING JAYA: The multi-billion-­ringgit global organic food and beverage market is expected to grow more by 2030, according to market research firm Grand View Research.

For Malaysia, there is a growing appetite for organic food among health-conscious consumers.

CLICK TO ENLARGE

But how do people know whether the “organic” foodstuff they buy are truly organic?

An important source is the myOrganic sticker that is usually found on the packaging of organic foodstuff sold at shops.

The myOrganic certification scheme is used to promote, implement and facilitate the adoption of organic agriculture, explains Agriculture Department (DOA) director-general Datuk Nor Sam Alwi.

“This certification scheme covers various organic activities, including fresh produce farming, beekeeping, the breeding of organic plant varieties and wild harvesting.

ALSO READ: Verifying food markers not quite an organic process

“The Malaysian Organic Certification Scheme is now known as myOrganic,” she said in in a statement to The Star.

To safeguard the authenticity of certified organic products, the regulation of organic items is primarily governed under the Food Act 1983 and Food Regulations 1985, overseen by the Health Ministry, she added.

The Agriculture and Food Security Ministry has also registered the myOrganic certification logo with the Intellectual Property Corporation of Malaysia (MyIPO) as a legitimate trademark.

“If the DOA receives complaints about the misuse of this logo, the matter will be referred to the Domestic Trade and Cost of Living Ministry for further investigation.

“In cases where fraud is confirmed, the offending company may be prosecuted under the Trademarks Act 2019,” she said.

Upon conviction, offenders may face a fine of up to RM10,000 per item bearing the misused trademark, imprisonment of up to three years or both.

ALSO READ: How bugs help you spot organic durians

Nor Sam said the department has issued guidelines to certificate holders outlining the terms and conditions for the use of the myOrganic logo.

“However, we also rely on the cooperation of consumers to address the risks of fraud and logo misuse by lodging complaints where appropriate.

“Matters related to processing, repackaging or importation of organic products fall strictly under the jurisdiction of the Health Ministry,” she said.

To create awareness, the department is actively carrying out promotional activities targeting consumers through physical events and social media platforms, as well as by engaging with local organic associations.

“These initiatives focus on promoting Good Agricultural Prac­tices (GAP), highlighting the importance of recognising the myOrganic logo, encouraging the purchase of certified farm produce.

“Additionally, consumers can verify the validity of organic certification by visiting the DOA website at www.doa.gov.my under the list of certified recipients,” she said.

Dr Juju Nakasha Jaafar, senior lecturer at the Faculty of Agri­culture at Universiti Putra Malay­sia, said there has been confusion on the authenticity of organic products.

“For example, a seller might claim he is selling pesticide-free or chemical-free vegetables, which gives consumers the impression that the products are organic.

“In reality, these vegetables may be free from chemical pesticides but are still grown using chemical fertilisers and thus do not qualify as organic,” she said.

“For vegetables to be certified as organic, all input must be completely natural.

“This includes compost fertilisers, organic pesticides and non-genetically modified organism seeds.”

These are outlined in the myOrganic certification guidelines.

“Consumers can look for the myOrganic logo on vegetable products to ensure they are truly organic.

“The DOA strictly regulates this certification,” she said, adding that more details can be found on the DOA website.

Federation of Malaysian Consumers Associations (Fomca) secretary-general Dr Saravanan Thambirajah said traders must verify the certification documents provided by suppliers before selling or labelling any product as organic.

“They should only use the term ‘organic’ when backed by certification,” he said.

Saravanan said consumers should look for official certification logos on packaging and not rely solely on general claims like ‘natural’.

“If you suspect a product is being falsely marketed as organic, you should report it to the Domestic Trade and Cost of Living Ministry or lodge a complaint with Fomca,” he added.--

By KHOO GEK SAN, DIVYA THERESA RAVI and RAGANANTHINI VETHASALAM

https://www.thestar.com.my/news/nation/2025/07/12/be-label-savvy-to-stay-healthy

Govt urged to intervene as new US tariff brings jitters for businesses

 

Trying times: The tariff would significantly impact manufactures like those in Bayan Lepas, Penang. — CHAN BOON KAI/The Star

JOHOR BARU: The 25% tariff imposed by the United States on Malaysia has sent jitters through the manufacturing sector, with many warning of cancelled orders and a potential wave of business closures.

The furniture industry, for one, fears losing business to Vietnam, which faces a 20% tariff, while some other industries are even thinking of relocating.

Malaysian Furniture Council president Desmond Tan said Vietnam, Malaysia’s closest competitor in the global furniture market, produced a similar range of products and targets the same export destinations – especially the United States.

The tariff for Vietnam was reduced to 20% from the original 46%.

“Since the announcement was only made yesterday (Tuesday), it is still too early to gauge the full extent of its impact on order volumes but the council will continue to monitor developments closely,” he said.

Tan said the industry was also being squeezed by rising costs on the domestic front.

“These include the expanded Sales and Service Tax (SST), which now imposes a 5% tax on raw materials and directly drives up production costs. We also face higher labour expenses with the new minimum wage,” he added.

The new Employees Provident Fund contributions for foreign workers would add further strain while fuel and electricity prices had also gone up, he said.

The council is now urging Putrajaya to commence urgent talks with the United States to negotiate a reduction of the tariff.

He also appealed for a rethink on the new taxes and price hikes to lower production costs, and for export incentives to protect jobs.

The United States accounts for 60% of the country’s total furniture exports, totalling RM2.039bil in just the first four months of the year.

Malaysia also exports furniture to Singapore, Australia, Japan and the United Kingdom, among others.

Muar Furniture Association president Steve Ong said the new tariff was a major blow, as Muar supplied more than RM4bil worth of furniture to the United States in 2024.

It made up 67% of Malaysia’s total furniture exports there, he said.

“The 25% tariff will likely lead to clients cancelling orders and local manufacturers scrambling to stay afloat. This is an urgent crisis,” Ong said.

Another industry player urged the government to act swiftly.

“If nothing is done, a globally competitive industry like ours could shrink or even collapse,” said Goh Song Huang.

“At a time like this, we need clear, steady policies and a government that understands and responds to the real pressures we face.”

In Penang, local industries are bracing for reduced demand with some considering relocation.

“Companies in Malaysia may be forced to shift parts of their production to countries with lower tariffs,” said Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai, adding that higher prices driven by import tariffs tend to suppress global demand.

“When the cost of imported goods rises, demand naturally falls. In the end, everyone along the supply chain, especially buyers of raw materials, will be affected,” he said.

Earlier, it was reported that semiconductor exports would be exempt from the tariffs but it is unclear whether exemptions will remain under the new tariff regime.

“Vietnam’s tariff is at 20%, which gives them a pricing advantage. US buyers may look for cheaper alternatives, putting Malaysian exporters at a disadvantage,” he said.

Federation of Malaysian Manufacturing (FMM) Penang chapter chairman Datuk Seri Lee Teong Li said the 25% tariff would significantly impact exporters to the US.

“It’s a substantial amount. For local manufacturers shipping to the US, it will reduce profit margins. Costs will rise, and customers may start sourcing from other suppliers.

“Even when the 24% tariff was announced in April, it was already a heavy blow. We had hoped for a reduction, not an increase,” he said.

He noted that for now, the strategy was to ship out as much as possible before the Aug 1 deadline.

Meanwhile, the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) is urging the government to temporarily lower the expanded SST to 4% to ease the financial burden on businesses and preserve Malaysia’s competitive edge.

Its president Datuk Ng Yih Pyng said the government should reduce the expanded SST rate from the current 6%-8% for the first two years of implementation.

He said businesses, already grappling with higher operational costs driven by multiple government-imposed measures, would now have to face the the tariff headwinds and global uncertainties as well.

Source link https://www.thestar.com.my/news/nation/2025/07/10/govt-urged-to-intervene-as-new-us-tariff-brings-jitters-for-businesses

Why the cooperative spirit of ‘greater BRICS’ resonates worldwide

 

The 17th BRICS Summit is being held from July 6 to 7 in Rio de Janeiro, Brazil. This marks the first high-profile gathering of the "greater BRICS family" in its new "11+10" format - comprising 11 member countries and 10 partner countries - following Indonesia's official entry into the BRICS cooperation mechanism in January and Vietnam's official joining as a BRICS partner country in June. The summit is themed "Strengthening Global South Cooperation for More Inclusive and Sustainable Governance." As the host country, Brazil has outlined three key priorities for the meeting: deepening cooperation in public health, promoting a unified stance on climate change, and establishing mechanisms to facilitate trade and investment among member states.

On the eve of the summit, Colombia and Uzbekistan formally joined the New Development Bank as full members. Today, the BRICS family represents over half of the world's population, accounts for one-fifth of global trade, and contributes nearly 30 percent of global GDP. This remarkable momentum is no accident - it reflects the growing appeal of the "BRICS spirit" of openness, inclusiveness, and win-win cooperation. According to data from the International Monetary Fund (IMF), in 2024, BRICS collectively reached 4 percent GDP growth, significantly outpacing the global average. This demonstrates that the "greater BRICS" has become a "southern engine" that continuously fuels global development.

According to some foreign media outlets, this year's summit will discuss important topics, including the establishment of a new guarantee fund and the "Tropical Forests Forever Facility," and will voice collective positions on IMF reform. As the world is entering a new period of turbulence and transformation, characterized by rising unilateralism and protectionism, and some major powers increasingly disengaging from international governance, BRICS remains steadfast in its original aspiration, focusing squarely on cooperation and development. All its agendas and agreements are being gradually implemented, turning words on paper into real development outcomes. As of 2024, the BRICS New Development Bank has approved 120 projects worth a total of $39 billion, covering key sectors such as transport infrastructure, clean energy, healthcare, and social development. As the "vanguard of the Global South," the "greater BRICS" governance proposals are receiving global attention, and the world is looking to the "greater BRICS" for wisdom and contributions.

The growing influence of the "Greater BRICS" is evident in Western reporting. From the very start, the Rio BRICS Summit has become a focal point of global attention. Reuters noted that the expansion of the "Greater BRICS" "has added diplomatic weight to the gathering" and the bloc is presented "as a defender of multilateralism in an increasingly fractured world." The New York Times focused on the new role of "BRICS" in global governance, emphasizing its ambition to "rebalance global power dynamics." Although some media outlets maintain a "critical" and "skeptical" attitude toward the BRICS Summit, the inherent "traffic appeal" of the Rio Summit is enough to reflect the international community's attention to and recognition of BRICS.

The BRICS countries differ in terms of historical culture, political systems, economic size, and development levels, and there are differences between overall interests and individual interests. However, this precisely reflects the valuable inclusiveness and complementarity of the BRICS mechanism. BRICS cooperation is a systematic collaboration of the Global South; it is both comprehensive cooperation and open-door cooperation. It embodies the voices of the Global South, providing more development opportunities and equal rights for countries in the Global South, and promoting an equal and orderly multipolar world as well as a universally beneficial and inclusive economic globalization. This not only aligns with the interests of the Global South but also contributes to the common good of the world.

From promoting the establishment of the New Development Bank to advocating for the "BRICS+" cooperation model; from articulating the "four major partnerships" among BRICS countries to building new industrial revolution partnerships within BRICS, China's contributions to the BRICS mechanism are evident. According to the "Hand in Hand: China-LAC Mutual Perception Survey," released by the Global Times Institute during the "Global Times' Overseas China Week and Global South Dialogue" series of events held in Latin America in late June, a majority of respondents from six Latin American countries believe that the BRICS can represent the Global South to voice its concerns on the international stage. Furthermore, 93 percent of Latin American respondents believe that China has brought opportunities for development to the region, and 84 percent recognize China's development prospects. Through its own actions, China has built a bridge of hope for common development, making the gears of "greater BRICS" cooperation operate more smoothly.

IIn the face of the ever-changing international landscape, BRICS countries have demonstrated strong cohesion and action, providing a "BRICS answer" to the changes unseen in a century, which enhances the credibility of BRICS. The Rio Summit will mark a new starting point. Looking ahead, BRICS countries will continue to uphold the "BRICS spirit," deepen cooperation in various fields, promote reforms in the global governance system, and make greater contributions to world peace and development.- Global Times

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