- Kedah, Perlis to become the main gateway to Thailand
- Sultan Ibrahim to visit Russia
- UAE, the US and Italy are top destinations for the ultra rich
IN Malaysia
25 to 19
Investment and Trade Minister Tengku Zafrul Abdul Aziz announced that Washington has reduced the tariff imposed on all Malaysian products exported to the US, from 25% down to 19% (Malaysian semiconductors and pharmaceutical exports to the United States are exempted from tariffs). However, it does not come free, as it looks like the US is getting the better side of the deal –
- More than 11,000 US products coming into Malaysia starting August 8 will have zero or reduced tariff rates imposed. He said among the US agriculture products that will have zero tariffs are dairy, poultry products, fruits and sanitary products;
- However, the halal standards imposed by the Malaysian Islamic Development Department (Jakim) will not be compromised, and the excise duties on three big items such as cars, tobacco and alcohol, will remain on all imported goods to Malaysia.
Zafrul also added that the big-ticket item purchases, such as the firm order for 30 Boeing 737 aircraft by Malaysia Aviation Group (MAG), are not part of the trade deal with the US, but instead are just being used as a leveraging tool during the trade negotiations, as the purchase was announced beforehand in March 2025. PM Anwar Ibrahim also defended MAG’s aircraft purchase as it is a sign that the company is recovering and not being used as a scapegoat in trade negotiations. Plus, from a helicopter view, any airliner only has two companies to buy aircraft from – either the US’ Boeing or the French Airbus.
https://m.malaysiakini.com/news/751011
But does a 6 percentage point reduction make any difference? According to the Star, 19% or 25%, losses and reduced profits are inevitable. Where does the 19% tariff rate put Malaysia in the global supply chain and among ASEAN economies? Vietnam, heavily reliant on the United States market for exports, has been imposed a 20% tariff rate. For Cambodia, Indonesia, the Philippines and Thailand, it’s 19%, similar to Malaysia. Singapore has a baseline tariff rate of 10%. So, does the Johor-Singapore Special Economic Zone (JS-SEZ) still look sexy to Singapore? We do not have that answer.
Source: https://www.thestar.com.my/business/insight/2025/08/02/19-or-25-its-still-challenging
Shorts
- Kedah, Perlis are well-positioned as major cross-border trade hubs – Northern Corridor Implementation Authority (NCIA) CEO Mohamad Haris Kader Sultan said that RMK13 is poised to further cement Perlis and Kedah’s position as major industrial and logistics hubs linking cross-border trade between Malaysia and Thailand. Major projects were announced to upgrade both Perlis Inland Port (PIP) and the Immigration, Customs, Quarantine and Security (ICQS) complex in Bukit Kayu Hitam, Kedah.
- The King to visit Russia – At the invitation of Russian President Vladimir Putin, King of Malaysia, Sultan Ibrahim, will visit Russia from August 5 to 10, becoming the first Malaysian Head of State to conduct a state visit to Russia since the establishment of diplomatic relations in 1967. The head of state of Malaysia is the Yang di-Pertuan Agong (King), a position currently held by Sultan Ibrahim. The Prime Minister is the head of government.
Around the SEA
The great migration: where the ultra-rich go?
Although most investment decisions are made based on the endowments of the investment destination, but in certain times, it is also based on where the owner of the investments puts their cash. Let’s look at the great migration of the ~142,000 uber-wealthy who’ll move abroad this year, driven by the winds of change, opportunity, and… just lower taxation.
The three most popular destinations according to the 2025 H&P Private Wealth Migration Report –
- United Arab Emirates – Apart from the zero income tax, the Emiratis also expanded their Golden Visa program 2022 to make it easier for the rich to relocate. Perhaps, the ‘Kuala’ title will change from ‘Kuala London’ to ‘Kuala Dubai’ soon. The UAE is also being seen as a haven to avoid Western persecution, as Russia’s latest invasion of Ukraine has seen the ‘Russian bubble’ in the UAE quintuple to about 100,000.
- USA – The great old Uncle Sam is still opening its doors to immigration, but now its taste has become a bit more bougie. Uncle Sam clearly still has appeal if you can afford his investor visa (USD800k+). And President Trump wants to ramp that up via his ‘Trump Card’, with a reported 70,000 folks already on the wait list for the USD5 mil scheme. Apparently, world-leading universities, a business-friendly environment, and the good old American dream are still pull factors for foreign individuals.
- Italy – Mamma mia, of course, Italy is in the list. The home of spaghetti and AC Milan are two enough reasons to lure people to the country. On a serious note, Italy’s financial hub of Milan has also attracted high-net-worth foreigners thanks to a favourable tax regime for non-domiciled residents.
But, where do all of these rich people come from? Mainly from the United Kingdom, China and India. For China, an estimated 7,000 rich-listers plan to leave China this year, mainly due to the uncertain political-economic outlook and the Chinese Communist Party (CCP) distrust towards the wealthy. But China’s sheer scale means its economy will likely produce many more than the 7,000 millionaires it loses this year.
For your EYES only
The ranking of water tariffs in Malaysia. Agaknya kene cari bini Penang baru bil air murah ya.
