00:00This week on Wu Says, we look closer at the outcome from the 47th ASEAN Summit.
00:05In this first part, Prof. Emeritus Datuk Wu Wing-Tai and Melissa Idris unpack what inclusivity really means for ASEAN in 2025,
00:15as well delve deeper into the agreement between Malaysia and the US and what it means for the country.
00:21Here's a segment from a conversation with Prof. Emeritus Datuk Dr. Wu Wing-Tai.
00:26The Trade Treaty talks about it applies to goods of Malaysian origin.
00:36What do you mean by goods of Malaysian origin?
00:40It clearly cannot be goods that are imported from China and immediately reshipped from Malaysia.
00:48It is in no sense, credible sense, that it is a Malaysian product.
00:54So then the question is, what if the product came here and was semi-finished and we put our artistic touches to it
01:04and put in some advanced technological components in it and then we ship it off to China?
01:14Well, the question is, what is the percentage of value added that is Malaysian in origin and Chinese in origin?
01:22So the whole thing of local content has been, what's the percentage of foreign inputs in your exports?
01:33Right.
01:33That number has not been specified because, let's face it, if we export coffee makers to the United States,
01:45there will have to be a chip inside.
01:48Not a high-level chip, but there will be a computer chip inside the coffee maker.
01:52And the cheapest producer of that kind of chip is China.
01:56So, clearly, to maximize profits, we should source from the lowest producers.
02:03Now, the question is, what will the Chinese chip comprise of the value of the product?
02:12If it is 10%, then that is a very high bar.
02:1610% means a very high bar for us.
02:18That means that 90% have been Malaysian.
02:20And that has yet to be specified.
02:25Catch the full conversation on Awani International and across our social media platforms.
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