KUALA LUMPUR, Sept 28 (Bernama) -- Bursa Malaysia ended marginally lower on Monday amid selling activity as the market lacked fresh catalysts to spur investors’ buying interest, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.60 points, or 0.09 per cent, to 1,670.02, from Friday’s close of 1,671.62. The benchmark index, which opened 0.93 of-a-point higher at 1,672.55, moved between 1,668.61 and 1,674.11 throughout the trading session. Market breadth was negative as losers surpassed gainers 748 to 388, while 517 counters were unchanged, 1,271 untraded and 91 suspended. Turnover slipped to 3.11 billion units worth RM2.40 billion from 4.07 billion units valued at RM2.69 billion on Friday.
In the latest issue of Tong’s Portfolio , Tong Kooi Ong argues that while Trump’s tariff strategy may be grounded in economic theory , its execution risks backfiring on a global scale — creating not only global trade uncertainty, but potentially triggering retaliation, supply chain disruptions, and global welfare losses . The Economic Theory Behind Trump's Move: Based on optimal tariff theory , a country with market power can impose tariffs to shift trade terms in its favor, improving national welfare by: Reducing import prices through global demand suppression Increasing tariff revenue Transferring income from foreign exporters The key formula: Optimal Tariff Rate = 1 / ε (ε = foreign export supply elasticity) Lower elasticity = higher potential optimal tariff Trump’s formula for reciprocal tariffs also mirrors this theory: Δt = (X-M) / M , where X = US exports, M = US imports. Why the Execution is Flawed: Trump imposed...