00:00And to the question on any U.S. Pacific sector, as I mentioned earlier on, about 30% of our
00:11semiconductor are exempted from tariffs. Again, I think there could be certain other announcement
00:18that may come post the negotiations. We do not know. So that's why we need to remain vigilant
00:24and we'll take it as it comes. And what we have said is that we know that I think in terms
00:30of our export is diversified. As I said, there is no country operating partner that has more
00:37than 15% in terms of the account for more than 15% of our export. So therefore, the diversification
00:43of the export itself will be able to manage or mitigate the potential impact from any
00:49implications from the tariffs itself. First, Malaysia clearly benefited from the front
00:58loading of exports as businesses try to avoid higher tariffs. Second, 32% of our exports to
01:07the U.S. are actually exempted from tariffs, including the key products such as semiconductors.
01:13Third, our exports tend to be priced inelastic, which means the quantity demanded for our exports
01:22will not drastically change in the short term when prices increase due to tariffs. Examples
01:29of these products include electrical machinery, computer hardware, and optical and scientific equipment.
01:36Tending to the middle chart, we have already observed some signs of front loading in E&E exports as
01:46firms try to soften the impact of tariffs. And this underscores the strong underlying demand
01:52for E&E products. And we expect demand for E&E to continue, supported by malicious and trans
02:00position in the global value chain and AI-related demand. Tourism will also continue to play a significant
02:09role in 2025. The improved flight connectivity, the extension of visa-free policies, and the promotional
02:19efforts leading up to the visit in Asia Year 2026 are projected to boost both tourist arrivals and also receipts.
02:28Of course, we are vigilant to downside risk, particularly from higher trade restrictions and
02:35potentially weaker income and demand from international tourism affecting Malaysia's goods and services exports.
02:44To complement our data assessments, the bank also engaged export-oriented firms to collect on the ground
02:51insights on the tariff impact. In fact, we did this quite recently. And these insights suggest that in the
02:57near term, less than one-third of surveyed firms indeed expect to be negatively impacted by the tariff measures.
03:06However, most firms foresee limited impact or even positive impact in the next three months. This stems from
03:15several factors. As mentioned earlier, some of our exports to the U.S. are currently exempted from tariffs. And in some cases,
03:24orders have already been secured for the upcoming months and providing a buffer against any immediate
03:32disruptions. Firms have also confirmed the presence of front-loading activity by their overseas clients,
03:40as observed from the macro data. Inventory building by these clients has led to a surge in demand for
03:48malicious exports.
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