#AWANITonight with Farhana Sheikh
- M'sia-U.S.: Building on positive momentum from trade talks
-Trump's tariffs: Malaysia’s bargaining chip moving forward
- M'sia-U.S.: Building on positive momentum from trade talks
-Trump's tariffs: Malaysia’s bargaining chip moving forward
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00:00Good evening, you're watching Awani tonight with me, Farhana Sheh.
00:12Investment Trade and Industry Minister Tengkudato Sri Zafrul Abdul Aziz
00:16has met with U.S. Trade Representative Jameson Greer in Washington on Thursday,
00:22describing the session as positive.
00:24He says discussion focused on efforts to support Malaysian industries and exporters
00:29amid ongoing trade tensions.
00:34USTR, bersama juga dengan pihak Malaysia,
00:39yang kita bersama-sama dengan semua kementerian dan agensi yang berkaitan,
00:44akan meneruskan perbincangan.
00:46Dan saya akan berjumpa sekali lagi dengan Ambassador Greer, USTR,
00:52pada bulan Mei, bulan depan.
00:55Dan insyaAllah kita akan terus dari peringkat pegawai,
00:59pegawai tertinggi akan meneruskan perbincangan yang dibincang hari ini.
01:02However, the minister did not disclose specific details regarding Malaysia's proposals on tariffs.
01:09The ministry later said in a statement it was open to negotiate with Washington on four key areas,
01:15namely reducing the trade deficit, addressing non-tariff barriers,
01:19strengthening technological safeguards and security,
01:22as well as exploring a potential bilateral trade agreement.
01:28Now, joining me is Dr. Paul Anthony Maria Das from Taylor's University
01:33to unpack the outcome of the meeting in Washington.
01:37Thank you so much for joining in, Paul.
01:40Thank you, Farhana.
01:42Right, Paul.
01:43Now, Miti Minister Tengku Zafril has described the meeting with US Trade Representative as positive,
01:49saying they agreed to continue further discussion.
01:52Now, what's your take on this?
01:53Where does Malaysia stand to gain from this meeting?
01:58Malaysia stands to gain economically, strategically and diplomatically
02:02from continued engagement with the US.
02:06A positive meeting sets the tone for stronger bilateral ties,
02:11which can enhance trade, attract more investment
02:15and open up new markets for Malaysian products.
02:18In particular, Malaysia can benefit from increased access
02:23for its electrical and electronics exports,
02:26digital services and sustainable pump oil.
02:29It also helps position Malaysia as a key player
02:33in the reconfiguration of global supply chains,
02:37especially for industries seeking alternatives to China.
02:40On top of that, stronger ties with the US
02:43can encourage more technology transfer,
02:47capacity building and support for Malaysia's green economy goals.
02:53It seems that there's a lot to look forward to with regards to this meeting.
02:56Now, Miti has said it's looking at trade deficit
03:00and possible bilateral trade deal with the US.
03:03With this meeting, expected next further meeting
03:07for further discussion next month.
03:08So, what possible area do you think
03:11or specific area should Malaysia focus on
03:13for this further discussion?
03:17In the second round of talks,
03:20I think Malaysia should prioritize discussions in sectors
03:24that align with its long-term development goals
03:27and areas where collaboration with the US
03:31can deliver the most impact.
03:33One major area is the digital economy,
03:36where Malaysia can push for cooperation in cross-border,
03:41e-commerce, data governance, and digital infrastructure development.
03:46The country should also focus on high-tech manufacturing
03:49and semiconductors,
03:52encouraging US investment in its electrical and electronic sector
03:57to further integrate into global value chains.
04:01Green economy cooperation is another key area,
04:04whereby Malaysia can seek support for its renewable energy transition,
04:11carbon market frameworks, and climate technology.
04:14At the same time, discussions should address market access for sensitive exports,
04:20such as palm oil and halal products,
04:23by promoting sustainability and compliance.
04:27Malaysia can also propose collaboration on workforce development,
04:31particularly in upskilling talent for Industry 4.0,
04:36green jobs, and technology innovation.
04:39All of these areas not only benefit Malaysia's economy,
04:43but also enhance its attractiveness as a regional hub for American businesses.
04:50It seems there's a lot of areas that Malaysia can look at,
04:55especially, like you mentioned, the green sector as well that we can explore.
05:00Now, upcoming ASEAN summits are happening,
05:04and an expected ASEAN-US summit as well next month.
05:07How can the bloc build on this positive momentum that we have right now?
05:11ASEAN can build on this momentum by presenting a united front
05:19and reinforcing its position as a stable and attractive region for trade and investment.
05:26The bloc should focus on deepening cooperation with the U.S.
05:31in emerging areas like clean energy, digital trade, cyber security, and supply chain resilience.
05:40At the summit, ASEAN can also push for a stronger support for its small and medium enterprises,
05:48sustainable infrastructure, as well as green finance.
05:52More importantly, ASEAN should strengthen regional initiatives like the ASEAN Digital Economic Framework
06:02and make clear commitments to open and rules-based trade.
06:07In this position, ASEAN is a constructive partner in the U.S.-Indo-Pacific strategy
06:14while safeguarding the region's economy and autonomy.
06:19Right.
06:19Now, beyond Malaysia's talk and also, you know, at the ASEAN level,
06:24there's also the International Monetary Fund and World Bank Spring Meetings taking place.
06:29So, what's your take on the general tone and global economic mood from Washington?
06:37The overall tone from Washington is cautious optimism.
06:42Policymakers and economists are concerned about persistent global risk,
06:48such as inflation, high interest rates, slowing growth in China and Europe,
06:53and rising debt in developing countries.
06:56But there is also a strong push for an economic resilience, green transition, and inclusive growth.
07:05The message to emerging economies like Malaysia is to stay on a path of fiscal discipline
07:11while investing in sectors that future-proof their economies like digital, clean energy, and innovation.
07:19There is also a growing emphasis on multilateral cooperation to tackle global challenges,
07:27including climate change and supply chain vulnerabilities.
07:31Countries that can demonstrate sound governance, open, and long-term vision
07:37are more likely to attract support and investment from global financial institutions.
07:42Right. I mean, you mentioned fiscal discipline just now for Malaysia
07:47and also, you know, many avenues for Malaysia to explore
07:51when it comes to, you know, stuff that is going on right now
07:55with regards to the trade tensions.
07:57And there's plenty to look forward to.
07:59This issue is still developing.
08:01So, thank you so much.
08:03That was Dr. Paul Anthony Maradaz from Taylor's University.
08:07Now, we will go for a short break.
08:10See you after this.
08:12Continuing our discussion earlier, we've spoke with Dr. Juwita Mohamad
08:39from ideas on Malaysia's next steps in its trade talks with Washington
08:43and what we can leverage to move forward.
08:46Here's what she has to say.
08:49The diplomatic discussions are very much needed.
08:53We need to be showing the U.S. to the U.S.
08:56that we're willing to work things out diplomatically.
09:00And again, because Malaysia has always been a trading partner with the U.S.
09:08We've had long diplomatic relationships as well with the U.S.
09:13So, it's key for us to be keeping that relationship,
09:18especially when our supply chains are very much integrated,
09:24especially in the semiconductor industry.
09:27So, we are actually party to the investment and trade framework 2004 with the U.S.
09:37So, the discussions should be based on that agreement.
09:42Whatever, you know, whatever outcomes that has transpired,
09:47it should be backed and it should be based on our initial investment and trade framework 2004 agreement with the U.S.
09:55I am also a bit concerned that the U.S. will try to justify their move with Malaysia's non-tariff measures
10:05that have been used not just against the U.S., but also with our other international partners.
10:16And these type of non-tariff measures or behind-the-border measures are very much related to investments,
10:23halal industry, pharmaceutical industries, and also government procurement rules.
10:29So, if this is brought up by the U.S., then I think further discussions on how to lax
10:37or make it a bit more flexible for the U.S.
10:42From the perspective of the non-tariff measures,
10:45I think that will need to take place a bit on the sidelines that would need a bit more discussion.
10:57Juwita also highlighted Malaysia's bargaining chip in its negotiations with the U.S.
11:03The U.S. is only looking at trading goods when they look at their surplus or trade surplus or their trade deficit.
11:12But the U.S. has its strength in services.
11:15Again, as a developed country, you should be moving away from manufacturing goods.
11:21But then also, as you grow and as you have more knowledge,
11:27then you should be moving up into the services sector.
11:31So, Malaysia's bargaining chip would be to open up our services sector.
11:35This is something that we could put on the table for the U.S.
11:39So, because this is where the U.S. strength is and Malaysia's strength is still in the manufacturing
11:44of electronics and electrical goods, palm oil, and apart from other industries.
11:53So, again, what we can put on the table is, again, by opening up our services industry,
12:02where, again, the non-tariff measures or behind-the-border measures are very apparent.
12:12And, again, what I mentioned before, if we are keen to keep this relationship with the U.S.
12:20and we are willing to open up our services industry to the U.S.,
12:26then, again, the behind-the-border controls need to be laxed and made somewhat transparent.
12:33We need to be making the steps and the requirements more transparent wherever possible,
12:39especially in investments in the halal industry, in the pharmaceutical industry,
12:45in government procurements, where I mentioned before barriers are seen to be the highest in Malaysia.
12:52Now, countries big and small are stepping up to the negotiating table to respond to Trump's tariffs.
13:00Dr. Juwita also explores how Malaysia can deepen cooperation with the U.S.
13:05as a way forward in trade talks and how ASEAN can approach discussions with a united front.
13:12This is a very interesting time, I think, because you do see the dynamics
13:18between, like, bigger countries and smaller countries.
13:21So I don't see bigger countries like China would want to be very flexible to cater to U.S. demands.
13:29For smaller countries in ASEAN, I think discussions on avenues of cooperation
13:33can be helpful to mend the relationship.
13:37So cooperations on critical minerals and semiconductors with Malaysia and the U.S.
13:43can be explored if, and I only say if, it benefits the Malaysian economy as a whole
13:50and not just the sector alone.
13:52So these cooperations need to be meaningful and it needs to go beyond, you know, FDI numbers.
13:59It needs to empower local players through technology and also knowledge transfer.
14:04And it needs to have sustainable job creation, not just, again, numbers of jobs created.
14:10So for some countries, the U.S. hostile unilateral move has caused the trust and good faith
14:19to be broken, somewhat broken.
14:22But for Malaysia, we have always wanted to penetrate the U.S. market,
14:27even from, you know, the time when we wanted to negotiate the TPP with the U.S.,
14:34you know, as a small open economy, we really did want to pursue that relationship with the U.S.
14:41So again, this visit is very much needed, especially for Malaysia,
14:45if we want to move the needle and repair the relationship.
14:50But again, in Malaysia, we need to look inwards as well to see whether we can improve our processes
14:57for, you know, for our future partners, not just the U.S.
15:02And again, we need to ensure that negotiations with the U.S. can be a win-win situation.
15:09And again, it has to be beyond FDI numbers.
15:14Under Malaysia's chairmanship, ASEAN has vowed to stand together,
15:18rejecting unilateral tariffs and committing to frank, constructive dialogue.
15:23While member states continue individual talks with the Trump administration,
15:27Dr. Juwita highlights the potential for ASEAN to navigate the issue collectively.
15:31When you talk about ASEAN, you want to compare it with the EU, right,
15:35as a single block of production.
15:41But the thing with ASEAN, even though we are, you know, a single regional block,
15:47we have our different jurisdictions, we're different nationals.
15:51So we're not quite like the EU at all.
15:55So again, when you think about the EU and ASEAN free trade agreements,
16:01when you think about negotiations, negotiations still happen at a bilateral level
16:09with each ASEAN country.
16:11But I think it's good that for ASEAN, we have made the statement that we're not going to
16:18increase the tariff rates and we're going to be discussing.
16:24And again, I think this could be a foot forward in terms of, again,
16:32mending the relationship.
16:33But I don't see, personally, I don't see ASEAN as a bloc negotiating with the Trump administration.
16:43I do think that it's going to be bilateral talks with each ASEAN country.
16:49And again, this is how we've been, even with the EU.
16:52But again, theoretically, it would be easier if all of us, we have, you know,
16:58a single voice on each product line that has the tariff increases.
17:04But again, as you mentioned before, the tariff increase is not to ASEAN as a bloc.
17:10It's like two different countries.
17:12So again, it has to be negotiated at the national level with the Trump administration.
17:19I think, again, diplomatic ties have to be kept and have to be mended.
17:30And again, as a small open economy, we might want to have the U.S. as an ally.
17:38But I do feel that on our side, we do need to look inwards to see what kind of cooperation
17:45can lead to a win-win situation and not just, you know, opening up our doors
17:51just for the sake of U.S. demands without looking into our own interests
17:57and our own social well-being.
18:02Don't go anywhere. Stay tuned for more after this break.
18:15Welcome back.
18:23Now, Malaysia is walking a fine line in its trade talks with the U.S.,
18:28trying to secure better terms while keeping regional ties strong and its economy diverse,
18:34even as U.S. Trade Representative Jameson Greer resists calls for product-specific tariff exemptions.
18:40To give you more on this, insights on how Malaysia is managing this tricky trade balancing act,
18:47we speak to Karisma Putra Abdul Rahman from Baitul Aminas.
18:55Jameson Greer has emphasized a firm stance of, quote,
18:58no exclusions and no exemptions.
19:01However, we also know that the Trump administration as a whole has been compromising on certain areas.
19:06For example, certain pharmaceuticals have been exempt from pharmaceutical tariffs.
19:09And so from this, we can infer that there is some flexibility to their position.
19:14And furthermore, that we must not forget that earlier this month,
19:17Mr. Greer himself has framed the tariffs as a strategic tool
19:20to bring countries to the negotiating table rather than as purely punitive measures.
19:25He described the tariff as part of an America First Trade policy
19:28aimed at creating leverage to secure fair trade deals.
19:31Knowing this gives us some insight into their potential playbook.
19:35So for the Malaysian delegation's meetings,
19:37they can choose to view it from an alternative angle here.
19:39One that is more in line with a blank slate
19:42where everything is up for negotiation or discussion
19:44rather than Malaysia having to sing for its supper.
19:48Therefore, Malaysia can take this opportunity to engage with the Trump administration
19:51to update our deal with the U.S.
19:53as the last time, if I'm correct,
19:55a formal round of discussions around trade were held in 2008.
19:58So I trust that PMX and our Minister of Investment, Trade and Industry
20:04are individuals with internationalist mindsets and economic expertise.
20:08Hence, I am fairly confident that our delegation has a solid opportunity
20:11to negotiate more favorable terms.
20:13Karisma also highlights the active role civil society and industry players can take
20:21in shaping negotiation outcomes and protecting national interests.
20:26He outlines steps on how they can be more involved in the process
20:29and ensure their voices are heard and priorities addressed.
20:33So as it stands, Malaysia already invites business groups
20:39and sometimes NGOs into trade talks,
20:42but the process tends to be quite ad hoc, opaque, and KL-centric.
20:47As I understand it, industry representation is fairly strong,
20:51but civil society input is still relatively sporadic.
20:54For example, in the CPTPP process,
20:56groups such as the Third World Network and a few others
20:59complain of inadequate consultation and limited tax access.
21:02Furthermore, being an eastern listener myself,
21:05Sabahan and Sorkian CSOs note a KL bias
21:08with few state-level dialogues accompanying discussions around DSS-RCEP.
21:13So when combined with the fact that draft chapters are shared only
21:16on a need-to-know basis with hand-picked stakeholders by METI,
21:19it becomes difficult for civil society to have an input.
21:22And so for this to improve, we can take a page out of Canada
21:25and the European Free Trade Association, or EFTA.
21:28So for example, Canada publishes their negotiating objectives fairly early.
21:32They invite written submissions and they post a
21:34what-we-heard report after each consultation.
21:36So this allows the government to have the space
21:39to perform mid-course corrections and for trust-building to also occur.
21:44And for the latter, so for EFTA,
21:46so during their EFTA-Malaysia Economic Partnership negotiations,
21:50the EFTA secretariat published a plain language fact sheet after it,
21:55allowing for those with broader expertise
21:57and members of the general public
21:59to understand the matters being negotiated.
22:01So this allows for more people
22:03and representative organizations in civil society
22:06to advocate to relevant policymakers
22:07on what is important to people on the ground.
22:10So these are some of the changes
22:11that the government could potentially consider
22:13to make trade negotiations a more holistic process
22:16and in the process of doing so,
22:18safeguard national interest.
22:22Further developments in the issue.
22:24China is considering exempting some US imports
22:27from its 125% tariffs,
22:30according to Chinese media citing industry sources.
22:34A task force from the Ministry of Commerce
22:36is reportedly compiling lists of items to be exempted
22:39and has asked companies to submit their own requests.
22:45A document listing 131 categories of products
22:49said to be under consideration for exemption
22:51had circulated Chinese social media platforms
22:54and among businesses and trade groups on Friday.
22:57The list included potential tariff removals
23:00for medical equipment and certain industrial chemicals.
23:04Officials are also reportedly discussing
23:06a potential exemption for aircraft leases.
23:10However, a Chinese foreign ministry spokesperson
23:12said he was not familiar with the specifics
23:15on Beijing's plans.
23:17He reiterated that China and the US
23:19were not engaging in any negotiations on tariffs
23:22and called on the Trump administration
23:24to stop misleading the public.
23:27Beijing's possible move to broaden tariff exemptions
23:30for multiple industries
23:31follows a shift in tone from Washington,
23:34which has pushed the US dollar up slightly
23:37and lifting equity markets in Hong Kong and Japan.
23:41The US had excluded electronics
23:42from its 145% tariff on Chinese imports
23:46earlier in April.
23:49Indonesia is prioritizing its national interest
23:52in ongoing tariff talks with the US,
23:55aiming for what it calls
23:56a fair and square trade relationship.
23:59The country's delegation have been in the US
24:01since last week negotiating the proposed 32% tariffs
24:05on Indonesian goods,
24:06which is now on hold for 90 days.
24:10While specific details were not disclosed,
24:13Aylangga Hartarto,
24:14head of the Indonesian delegation,
24:16revealed discussions covered energy supply,
24:19U.S. market access,
24:21deregulation and technology cooperation
24:23in agriculture, healthcare and renewables.
24:26Talks also addressed Indonesia's payment system
24:29and QR code standards viewed by the US as barriers,
24:32though Indonesia signal openness
24:34to foreign operators like Visa and MasterCard.
24:37Indonesia has proposed boosting US imports
24:40by up to $19 billion
24:41by sourcing key commodities like wheat,
24:45soybeans, liquefied petroleum gas and crude,
24:48while offering to reduce non-tariff barriers
24:50and cut taxes on US goods.
24:53On the sidelines,
24:54the delegation met with top US officials
24:56and executives from companies like Google,
24:59Amazon, Microsoft and Boeing
25:01to discuss sectors such as semiconductors.
25:04Last year, Indonesia recorded
25:06a $14.3 billion trade surplus with the US.
25:10However, Finance Minister Srimulyani Indrawati
25:13warned that US tariffs could affect global growth
25:15and Indonesia's economy,
25:17but still projects steady 5% growth,
25:20slightly below the 5.2% target.
25:22In other news,
25:25South Korea and the US have agreed
25:27to develop a trade package
25:29aimed at removing Washington's reciprocal tariffs
25:32before the current pause expires in July.
25:35Seoul's delegation to the US
25:36called the first round of trade talks
25:38a good start,
25:39but suggested that the process
25:41will take some time.
25:44South Korea said in a statement
25:45it requested exemptions
25:47from both reciprocal
25:48and item-specific US tariffs.
25:50It also offered cooperation
25:52in areas such as shipbuilding,
25:54energy and efforts
25:55to address trade imbalances.
25:58Both sides have agreed
25:58to hold working-level talks next week
26:01to determine the scope
26:02and structure of negotiations,
26:04with the goal of finalizing
26:05a package by July 8.
26:07South Korea,
26:08which faces 25% reciprocal tariffs,
26:11was among the first countries
26:12to enter trade talks
26:14with the Trump administration.
26:15Further negotiations
26:16are scheduled to take place
26:18in Seoul
26:19with US Trade Representative
26:20Jameson Greer
26:21on May 15th and 16th,
26:24with a focus on tariffs
26:25and non-tariff measures,
26:27economic security,
26:28investment cooperation
26:29and currency policy.
26:31That wraps up Awani tonight.
26:35Check out our web portal,
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26:37on the critical events
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26:43That's all for now.
26:46I'm Farnashe.
26:46Thank you for watching
26:47and good night.
26:56You're welcome.
26:58We'll see you next time.
26:59We'll see you next time.