00:00With all of it, the Majlis is now appointed to the President of the United States to
00:05stand up for the name of the ACCCC-TIFC
00:14Ladies and gentlemen, the US has initiated section 301
00:19Maybe, I share a bit what is this section
00:27The moment we signed the tariff in October last year
00:32So the imposter is 19%
00:34There is a lot of business community in the US
00:38Filed a suit to the US court and disagreed about the 19%
00:43Because they said that 19%
00:46The unilateral tariff is paid by them, not us
00:51We are just producing the product, we export to them
00:54This is our price
00:57When you reach US, they will impose 19%
01:01And that 19% is paid by their own, their American
01:07People will pay that
01:09Of course, if you ask me, whatever
01:12That really will affect us
01:13Because our product is no longer competitive
01:18If the receiving country imposes us on top of our cost, it's 19%
01:24But, that 19%
01:30When they deliberate at the court
01:34And finally the court decides that that 19% is not on point
01:38US being US, they have a lot of mechanism how to overcome that
01:44And then immediately they imposed under section 122
01:49Trade Act 1974 on US
01:52Immediately they imposed 10%
01:53And that 10% is only temporary for 150 days
01:59While waiting for the 150 days to be over
02:01So, they now start doing investigation under section 301
02:07On the pretext of trying to give a justification to their earlier decision
02:16And under section 301, there's four specific areas that they want to investigate
02:23One is the excess capacity
02:27Number two is forced labour
02:29Number three is environment
02:30And number four is estate subsidy
02:32In as far as Malaysia is concerned
02:36We are only affected into two out of the four
02:41We are okay on environment
02:43We are okay on estate subsidy
02:45Because our government doesn't give all of you money
02:49In order to penetrate other people's market
02:52Because we don't have money
02:54Because we don't have money
02:54We are running a deficit
02:55Okay?
02:55Probably $100 billion
02:57But if you look at China for example
03:00They have facilitated a lot of business community in China
03:05And they can give the subsidy to penetrate the market
03:09And to make it product competitive
03:11Because they have bad means to do it
03:13But we are not
03:14So therefore, we now need to address that two issues
03:19Assess capacity
03:21Assess capacity
03:22And also forced labour
03:24We have done on forced labour
03:26My last visit to America
03:28And we negotiated that
03:31And I said there must be something that
03:33We must have a benefit
03:35Being the first country to sign up
03:40And they have made a decision
03:42After I came back
03:43On Thursday
03:44On Friday
03:44They made an announcement
03:45Out of 60 economists
03:5017 have received tariff with us
03:52Which is 10
03:52The rest of 12.5%
03:55There is one more tariff that we need to aid
03:58Is the excess capacity
04:00This is where the excess capacity
04:05That is an issue that we need to face
04:08I don't know how long it takes
04:11But Malaysia doesn't have excess capacity
04:16The excess capacity of a third country
04:18May affect us if that product reaches our shore
04:23And we use that product
04:25And produce our own product
04:27And export
04:28That will be subjected to excess capacity
04:30I will detail
04:31I will discuss that later
04:35And the US is currently carrying out investigation
04:39On excess capacity
04:41And is yet to communicate a final determination
04:44To its trading partners
04:46What does that mean?
04:48The finalists are forced labour
04:5010%
04:51Now
04:52If they find out that
04:54Malaysia have excess capacity
04:56From a third country
04:58If
04:58Let's assume
05:00If they decide
05:01This excess is 25%
05:03So it's 25 plus 10
05:05It's 35
05:06So whatever product that you sell to the US
05:08They will add 35% on their side
05:11So basically means
05:13Try to stop the product coming to their country
05:16By imposing that tariff
05:18Even though our product is competitive
05:20But because we are not able to get the lowest of this tariff
05:26Then it will affect us also
05:28In as far as demand on the other side
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