KUALA LUMPUR, April 8 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) erased earlier gains to close marginally lower on Tuesday as mild bargain hunting activities were offset by cautious mode over ongoing global uncertainties. At 5 pm, the benchmark index slipped 0.24 of-a-point, or 0.02 per cent, to 1,443.56 from yesterday’s close of 1,443.80. The benchmark index opened 7.63 points firmer at 1,451.43 and climbed to as high as 1,454.58 in early trade before retreating to a low of 1,440.89 towards the end of the morning trading session. It then moved in a yo-yo mode during the afternoon session. In contrast, the broader market was positive with gainers outpacing decliners 669 to 367, while 419 counters were unchanged, 894 counters untraded, and nine others suspended. Turnover dwindled to 3.32 billion units valued at RM2.83 billion against 5.35 billion units valued at RM4.67 billion on Monday.
Key Takeaway
The U.S.’s sweeping tariff policy is no longer just about trade—it marks a shift toward geopolitical coercion, reshaping global supply chains, strategic alliances, and economic sovereignty.
Highlights:
- Tariffs as Power ToolsTariffs are increasingly used to compel compliance from trade partners, often extending beyond economics into areas like tech alignment, sustainability mandates, and diplomatic allegiance.
- Small Economies at RiskCountries like Malaysia—highly integrated into U.S.-led supply chains—must now navigate a complex terrain of lobbying, compliance, and political negotiation to avoid punitive costs.
- Unequal Playing FieldOnly firms with resources to influence policy can effectively respond. Others face reduced profitability or strategic compromise.
- Fragmenting Global TradeThe rise of retaliatory tariffs may accelerate the fragmentation of global commerce into politically aligned blocs, weakening supply chain resilience.
- Social Risk ImplicationsComplex and costly trade barriers could incentivize illicit labor practices, raising ESG red flags for multinationals and investors.
Strategic Outlook:
For corporates and governments alike, risk mitigation will hinge on diversification—of markets, supply chains, and diplomatic alliances. Aligning with long-term resilience strategies will be key in this new era of trade weaponisation.
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