00:00How do you see Malaysia's trade performance for the rest of the year or in the third quarter?
00:16And how likely is there to be more front-loading before the August 1st deadline for U.S. terrors?
00:23Well, we're still on track to reach our target growth.
00:27So, in fact, if we look at our target growth, around 4% to 5%, that will still be achievable.
00:36But the second half of the year, which is already starting now, we are seeing global trade moderating in terms of growth.
00:47Yes, you're right, there's front-loading in the last five months especially.
00:52But at the same time, given the August deadline, we expect this to somewhat continue.
01:01But I think a lot of it has been done.
01:03We are going to issue on Friday the latest trade numbers for June.
01:10So, you will see those numbers.
01:14But what's important, as you mentioned, as I mentioned just now, Malaysia trade performance for this year, still the expectation, as you know,
01:24for 2025, the projection by Benegara in terms of trade is expected to be around 5% and MOF about 3.9%.
01:35So, we continue to focus on achieving that target.
01:40So, we had a good discussion, myself and our team together with USTR, Jameson Greer, and the team from the trade department.
02:01What's happening is that we are now looking at various items on tariff and non-tariff that we can agree on.
02:14I've set a deadline for the team, of course, and of course, Trump has deadline the 1st of August.
02:19We try and conclude even before that if we can.
02:24But, again, there are issues that we still need time because it involves many agencies and ministries.
02:32So, we are doing the calculations as well.
02:34What is the impact to our export if we agree to certain terms?
02:40And what is the impact to our revenue as well, the government revenue, etc.?
02:44So, that's ongoing.
02:47We will continue to have another discussion this week.
02:51And we will continue to accelerate that discussion until end of the month.
02:57As you know, so far, Malaysia and many other countries are having difficulties in terms of meeting that deadline set earlier.
03:08But we try and meet this new deadline, 1st of August, but not at the expense of agreeing to every request.
03:17Because some of the requests we feel mean not be fair to Malaysia.
03:22What are the terms that are still difficult, like unfair, as you said?
03:27Are there any additional terms for the US then?
03:29Well, the terms, negotiations are, you know, there are no new, new terms.
03:34But, of course, there are concerns on non-tariff issues.
03:40We have addressed one of that through the Strategic Trade Act where we have now put one item in the list.
03:47But on issues where we cannot move, which is a red line, again, you know, I've signed the NDA,
03:55but I can share with you some of the issues are related to equity interests in certain sectors.
04:03As you know, Malaysia has equity restrictions for foreign shareholders for certain sectors.
04:13So there is a request for us to relook or liberalise those sectors.
04:19Many countries also have been asked to do the same.
04:21So for us, we need to consult those industries, whether we are ready to liberalise those equity maximum shareholding restrictions,
04:31especially when it comes to foreign equity restrictions that we have for many sectors.
04:38Some sectors are fully liberalised.
04:40I think KSU also knows manufacturing sector, nearly every sector is already liberalised.
04:46But some strategy sectors, they still have equity limits for foreign shareholders.
04:53Which sectors are there?
04:55I think you know.
04:56The one sector?
04:57All.
04:57All.
04:57We want to liberalise all sectors.
04:59All.
04:59Yeah.
05:02So if you are in, you know, a country, a sovereign country, and for strategic interest,
05:07are you willing to do that?
05:08Right?
05:09So we need to study that carefully.
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