KUALA LUMPUR, Dec 12 (Bernama) -- Bursa Malaysia’s key index closed higher today on bargain hunting, in line with positive investor sentiment across regional markets, consolidating at its highest level in more than two months — a level last seen on Oct 2, 2025. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 12.42 points, or 0.76 per cent, to 1,637.81, compared with Thursday’s close of 1,625.39. The benchmark index opened 2.83 points lower at 1,622.56, thereafter edged down to an early low of 1,622.03, before staging an uptrend to an intraday high of 1,640.36 in late trading. Market breadth was positive, with gainers trouncing decliners at 743 versus 387. Another 530 counters were unchanged, 1,108 untraded, and 16 suspended. Turnover increased to 3.09 billion units worth RM2.46 billion from 2.99 billion units worth RM2.35 billion on Thursday. Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the FBM KLCI ended higher on continued...
Key Takeaway: After tariff-driven setbacks, Temu, owned by PDD Holdings Inc., is mounting a comeback in the U.S. with deep price cuts, renewed advertising, and a logistics overhaul as it battles Shein for market share.
Price Cuts and Consumer Push
Prices of at least two dozen best-selling items tracked by Bloomberg dropped 18% on average since April.
Some items were slashed by as much as 60%.
Temu has also stopped charging import fees, which previously inflated final costs — at times exceeding the value of the goods themselves.
The retailer is pushing merchants to restock for the U.S. holiday season, offering better app traffic in exchange for steeper discounts.
Impact of Tariff Changes
Temu’s business model — shipping small parcels directly from China to U.S. households — was upended after President Trump removed the de minimis tariff exemption earlier this year.
U.S. sales plunged more than 30% in June and continued to fall 10%+ in July and August, according to Bloomberg Second Measure.
Many smaller merchants exited after Temu initially asked them to bulk ship and manage U.S. warehousing themselves.
Marketing and Merchant Sentiment
Temu has ramped up advertising in recent weeks, posting several thousand to 10,000+ new ads daily, compared to only a few dozen earlier this year. Still, efforts remain far below pre-tariff peaks of 20,000 ads per day.
Some Chinese merchants said they welcomed the chance to boost U.S. sales despite thinner margins, though four sellers reported continued sales declines, with one citing a 20% drop in recent weeks.
For multi-platform sellers, Temu has slipped to their lowest-performing channel since cutting ad spend.
Competitive Landscape
Shein: Sales recovered in the U.S. after a brief tariff-related dip. The company has since raised prices, though growth slowed and turned negative toward late August.
Temu: Trying to regain momentum with discounts, more ad spend, and logistics support.
Logistics Revamp
Temu is working with third-party couriers to develop an integrated logistics chain covering:
Cross-border shipping from China to the U.S.
Warehousing
Last-mile delivery
Bigger merchants with operations on Amazon.com Inc. are already leveraging Amazon’s fulfilment services to handle Temu orders.
Outlook
While aggressive discounts and logistics upgrades may help Temu claw back share, growth remains elusive, and U.S. consumer momentum has yet to rebound. The head-to-head rivalry with Shein underscores the challenges of sustaining a low-cost, cross-border retail model in a shifting trade and tariff environment.
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