KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Malaysia Engages in Last-Minute Trade Talks as 25% US Tariff Looms
Malaysia is racing to resolve trade tensions with the United States after President Donald Trump signaled a potential 25% tariff on Malaysian exports—an escalation from the previously paused 24% rate imposed in April.
While Washington appears open to further negotiations, the Ministry of Investment, Trade and Industry confirmed that Malaysia remains committed to finding a mutually beneficial resolution. The goal: avoid steep new duties that could hurt the country’s export-driven economy.
Efforts are underway to clarify the scope and potential economic damage from the proposed tariffs. “Malaysia is pursuing a fair and sustainable outcome for both nations,” the ministry said in a statement on Tuesday.
Markets reacted quickly. Malaysia’s benchmark stock index slipped as much as 0.7% and technology stocks, particularly those exposed to US demand, came under pressure. The ringgit, however, remained steady.
Minister Tengku Zafrul Aziz previously indicated that Malaysia is aiming to bring tariff exposure for key sectors down to under 10%. However, the Trump administration has called on Malaysia to address trade imbalances, ease non-tariff barriers, and enforce tighter controls on US-origin technology.
If talks fail, the impact could ripple across Malaysia’s manufacturing and electronics sectors. US tariffs are expected to weigh on GDP growth, prompting local economists to revise forecasts down from the 4.5%-5.5% range. Zafrul warned that the effects of these duties could persist for years.
Malaysia remains a critical US trading partner, with a $24.8 billion goods trade surplus in 2024 and the US ranking as its top foreign investor. A breakdown in talks could jeopardize supply chains, deter investment, and add pressure to already strained global trade relations.
Investor Insight:
With key sectors like semiconductors, electronics, and palm oil in focus, investors should monitor ongoing negotiations closely. Companies with significant US exposure may see volatility ahead of the Aug. 1 tariff deadline. Diversification and defensive positions could help manage near-term risks, while opportunities may arise in sectors less vulnerable to trade disruptions.
Comments
Post a Comment