Malaysia strengthens tech ties at LEAP 2025 in Saudi Arabia

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  • MDEC leads online growth in Riyadh
  • Malaysian Professional Council – Riyadh launched to improve relations

Attendees at the Feb 10 Malaysian-Saudi networking dinner jointly organised by MDEC and the Malaysian Professional Council – Riyadh.

The Malaysia Digital Economy Corporation ( MDEC ) successfully spearheaded Malaysia’s presence at LEAP 2025, a global technology conference held in Riyadh, Saudi Arabia from Feb 9 to 12. This proposal reinforced Malaysia’s part in Saudi Arabia’s modern transition and opened new avenues for cross-border partnerships and digital business investments.

Over the course of four days, the Malay group, comprising technology firms and business leaders, engaged in extensive firm matching sessions, discussions, and studied relationship opportunities within Saudi Arabia’s expanding technology ecosystem. With a focus on AI, big data analytics ( BDA ), smart cities, fintech, cybersecurity, and semiconductor solutions, Malaysian companies garnered significant interest from Saudi industry leaders keen to explore collaborative opportunities.

The Indonesian group consisted of:

  • Vulsan X
  • Pimato Group
  • Consurv Technic
  • TellUS Report
  • Airupthere Technologies
  • GITP Asia

Each brought cutting-edge options, contributing to meaningful discussions on the future of AI, automation, and online network within Saudi Arabia’s Vision 2030 model.

A spotlight of the vision was a networking breakfast held. Jointly organized by MDEC and the newly minted Malaysian Professional Council – Riyadh ( MPCR ), the event provided an invaluable platform for fostering relationships between Malaysian and Saudi tech leaders. The breakfast facilitated discussions on investment opportunities, business development methods, and joint ventures aimed at strengthening diplomatic ties in the modern economy.

Strengthening diplomatic technical assistance

The invitation-only meal, attended by Indonesian executives and Royal organization leaders, underscored Malaysia’s devotion to deepening its modern footprint in the Middle East. Indonesian visitors included:

  • Ahmad Zakri, Chief Executive Officer, Edgenta Arabia Limited
  • Ahmad Fazril Fauzi, Chief Financial Officer, UEM Edgenta Bhd
  • Eddie Razak, TellUS Report
  • Raffles Chan, Founder, GITP Asia
  • Haekal Talib, An-Nahdah Capital Partners

The night served as an opening for MPCR, an program designed to integrate and support Indonesian professionals in Saudi Arabia. With MPCR acting as a bridge for knowledge exchange and business development, the council hopes to play a pivotal role in facilitating cross-border trade and investment in the digital and tech sectors.

 

Local partnerships and market accessibility

Haekal, who has successfully established partnerships with two Saudi nationals, highlighting the ease of collaboration and the favorable environment for foreign businesses looking to enter the market.

” The Saudi business landscape is incredibly welcoming to foreign partners where Saudi funding is aplenty, especially those bringing innovative ideas and solutions. Within a short period, I was able to connect with two Saudi partners who share my vision for growth and expansion. The regulatory framework and government initiatives make it easier than ever to establish partnerships and go to market with the right ideas”, said Haekal.

He emphasized that Saudi Arabia’s push for digital transformation aligns well with Malaysia’s expertise, and the synergies between the two Muslim nations provide a solid foundation for future collaborations. ” It’s an exciting time for businesses looking to enter this market. The demand for technology-driven solutions is immense, and Malaysia is well-positioned to contribute”.

MoU to enhance Malaysia-Kingdom of Saudi Arabia tech collaboration

MDEC and the Federation of Saudi Chambers ( FSC ) signed an MoU with MDEC represented by Nizam Rosli, Global Alliance, Digital Exports, with Abdulghani Al Rumaih, Chairman, Saudi Regional Council for South East Asia, representing FSC. The MoU is seen as a commitment to foster business expansion, digital trade and investment between tech companies in both nations.

The MoU paves the way for structured business matching, networking, ecosystem development, and joint promotional efforts to accelerate digital growth across both nations.

Nizam outlined the key expectations and objectives. ” MDEC and the Federation of Saudi Chambers of Commerce ( FSCC ) will undertake a range of collaborative activities with the goal of uplifting trade and investment opportunities for tech companies in both markets. This includes fostering innovation pipelines through public and private ecosystem builders, providing platforms for knowledge exchange, and facilitating participation in business events such as networking sessions, dialogues, conferences, exhibitions, and workshops”.
Arabic Generative AI by MOZN.ai on display at LEAP 2025.

Immersing in the MENA tech ecosystem

Beyond formal business engagements, the Malaysian delegation actively participated in LEAP Nights, exclusive networking receptions that connected global tech leaders with Saudi stakeholders. Notably, attendees experienced the vibrant energy of Riyadh’s evolving tech landscape at events hosted by 500 MENA, KAUST Innovation, and Endeavor Saudi Arabia, further strengthening ties with regional venture capitalists, ecosystem builders, and tech innovators during Riyadh’s cold winter nights.

With the Kingdom of Saudi Arabia’s ambitions to grow into a global tech player, Malaysia’s proactive engagement at LEAP 2025 underscores its readiness to contribute to and benefit from the region’s digital transformation. The collaborations forged during this mission mark the beginning of an exciting chapter for Malaysia’s digital economy expansion in the Middle East.

As MDEC and Malaysian tech companies continue their efforts in Saudi Arabia, the prospects of enhanced digital trade, investment, and knowledge exchange signal a promising future for both nations in the global digital economy.

Malaysia-Saudi trade overview

In 2023, total trade between Malaysia and Saudi Arabia was valued at approximately US$ 11.54 billion ( RM51.27 billion ). Key sectors contributing include:

    Oil &amp, Gas: Saudi Arabia exported US$ 7.24 billion worth of crude petroleum and US$ 1.22 billion in refined petroleum to Malaysia.

  • Plastics and Chemicals: Ethylene polymers and other chemical products accounted for US$ 252 million.
  • Agriculture: Malaysia exported US$ 494 million worth of palm oil to Saudi Arabia.
  • Digital and Electronics: Electrical and electronic products were key contributors to Malaysia’s exports.
  • Hospitality and Services: Tourism, particularly related to Hajj and Umrah, plays a role in bilateral trade, though specific service trade figures are limited.

]RM1 = US$ 0.225 ]

Muhammad Adrian Wong is a Contributing Editor to Digital News Asia. He attended LEAP 2025 on his own diem.

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Burnt allies: Japan, S Korea toe cautious line after Trump tariffs – Asia Times

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Two weeks into US President Donald Trump’s subsequent word, the liberal global order is on life support.

Alliances and international organizations are now seen by the United States as obligations. Europe and NATO are framed as bad company, “ripping off” the US. On his so-called” Liberation Day”, Trump even imposed 20 % tariffs on all European Union goods.

The Trump presidency has been far less important of the US ‘ relationships in the Indo-Pacific place. On a visit to Tokyo this year, US Defense Secretary Pete Hegseth described Japan as America’s “indispensable partner” in deterring Taiwanese anger.

But, Japan and South Korea fared even worse than the Union with Trump’s fresh tariffs. Trump slapped Japan with 24 % tariffs and South Korea 25 %. ( Both countries enjoy a trade surplus with the US. )

But, how are the US ‘ two key supporters in the Indo-Pacific dealing with the capricious US head? Did they follow Europe’s result in reassessing their personal safety relationships with the US?

Japan: a good mountain but concerns remain

America’s post-war protection plan in Asia contrasts from Europe. While NATO was built on the premise of shared military among its users, the US adopted a “hub-and-spokes” type in Asia, relying on diplomatic relationships to contain the spread of communism.

Japan and South Korea have huge sheltered under the US nuclear umbrella and held big US military bases. Both are also very sensitive to changes in the US ‘ Indo-Pacific policies.

Japan, in particular, has a long history of cautious empire control with the US, epitomised by former Prime Minister Shinzo Abe’s courting of Trump.

During Trump’s first term in office, Abe’s plan targets aligned strongly with the US: transforming Japan’s security position to make it a serious military and diplomatic energy. Japan increased defense spending, lifted hands trade restrictions and increased ties with India and Australia.

Prime Minister Fumio Kishida continued to raise Japan’s safety profile from 2021-24, once increasing military investing and taking a hard line on Russia’s invasion of Ukraine. He emphasised” Europe today may become Asia tomorrow”.

His son, Shigeru Ishiba, had a successful conference with Trump in February, soon after his opening. The mutual declaration reaffirmed US protection promises to Japan, including over the Senkaku Islands, which are claimed by China.

Japan even agreed to buy American liquefied natural gas, and eventually committed to working with South Korea to build a US$ 44 billion plan to import LNG from Alaska.

Nevertheless, these positive advancements do not think the marriage is on solid ground.

In early March, Trump complained the US-Japan security agreement signed in 1960 was “one-sided” and a top administration official again called for Japan to increase its defence spending to 3 % of gross domestic product ( GDP ) – a huge increase for a country facing serious demographic and fiscal pressures.

Reports even emerged the US was considering cancelling a new shared headquarters in Japan aimed at deeper connectivity between US and Japanese forces.

South Korea: exceptionally susceptible on trade

South Korea faces comparable pressure. Ties between the two countries were strained during Trump’s first word over his require South Korea increase the amount it pays to network US troops by nearly 400 %. A 2021 deal restored some security but left Seoul seriously worried about the future of the empire.

Trump speaks to US troops stationed at Osan Air Base north of Seoul in 2019. &nbsp, Photo: Ed Jones / AFP share / AP via The Talk

South Korea’s operating leader, Choi Sang-mok, has expressed a desire to improve relations with the US, though Trump has apparently been great to his improvements.

With a$ 66 billion trade surplus with the US, South Korea is considered the country most vulnerable to trade risk with the Trump administration, according to a Swiss research group.

Trump’s prior recommendations that both South Korea and Japan develop nuclear weapons or compensate for US atomic security has also rattled some emotions. As trust in the US empire diminishes, both places are engaging in an urgent public debate about the possibility of acquiring nuclear weapons.

Conflicts moving forwards

Potential for conflict is on the ocean. For instance, Tokyo and Washington are set to renegotiate the deal that dictates how much Japan pays to host US soldiers next month.

Both friends pay large sums to host US foundations. South Korea will pay$ 1.14 billion in 2026, and Japan pays$ 1.72 billion annually.

A trade conflict may also enable a reevaluation of the expenses of US efforts to detach from China, possibly leading to closer economic ties between Japan, South Korea and China. The three countries have agreed to accelerate talks on a trilateral free trade agreement, which had been on hold since 2019.

Another challenge is semiconductors. Japan’s new semiconductor revitalisation strategy is prioritising domestic investment, raising questions about whether Trump will tolerate “friendshoring” if Japan diverts investments from the US.

In 2024, Japan outspent the US in semiconductor subsidies ( as a share of GDP ), while Taiwan’s TSMC, the world’s largest contract chipmaker, expanded its production capacity in Japan.

Seoul remains an important partner to Washington on semiconductors. Samsung and SK Hynix are both boosting their investments on new semiconductor plants in the US. However, there is now uncertainty over the subsidies promised to both companies to invest in America under the CHIPS Act.

Ultimately, the strength of these alliances depends on whether the Trump administration views them as long-term bulwarks against China’s rise in the region or merely vassals that can be extorted for financial gain.

If the US is serious about countering China, its regional alliances are key. This would give Japan and South Korea some degree of leverage – or, in Trump terms, they’ll hold valuable cards. Whether they get to play them, however, depends on what Trump’s China policy turns out to be.

Sebastian Maslow is associate professor of international relations, University of Tokyo and PaulO’Shea is senior lecturer, Centre for East and South-East Asian Studies, Lund University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Commentary: As Trump’s tariffs roil markets, can Singapore seize the moment?

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SMALL-CAP STRENGTH

The three big businesses in Singapore- DBS, OCBC, and UOB- dominate the market, accounting for about 25 per share of daily trading volume. Their powerful functionality has led to a substantial boost in their combined weight in the Straits Times Index (STI), from 40 per cent in 2019 to 54 per share now.

But, over 80 per share of the listed businesses on the SGX have a market capitalisation of under US$ 1 billion, positioning the trade as a small-cap business. This section, especially small and mid-cap companies, remains undervalued despite being well-run, prosperous, and offering attractive income. Revitalising this industry sector may provide much-needed cash and power to the SGX.

Rather than forcing fund managers to invest in individual stocks, a more effective strategy could be to create indices and exchange-traded funds ( ETFs ) based on small and mid-cap companies- perhaps an SGX50, SGX100, and SGX200.

These funds would make it easier for institutional investors, including home offices, to get exposure to smaller- and mid-caps, therefore enhancing cash. Such a move could drastically affect the buying dynamics of the local marketplace by bringing administrative wealth into formerly neglected parts.

While the EMRG’s S$ 5 billion action appears to be a step in the right direction, some business watchers argue that more could be done to support the SGX. For example, it is worth considering if government-backed funds like the Government of Singapore Investment Corporation ( GIC ) should invest in SGX-listed stocks.

If the SGX succeeds in attracting local companies to record here, it makes little sense if the GIC does not participate in them, especially when it does so on other markets like Hong Kong. Such an technique may further enhance the attractiveness of the SGX as a list destination.

The issue of blacklisting, which has been a growing problem with around 20 firms delisting last year and five so far this year, may also be alleviated if the S$ 5 billion program introduces enough liquidity into the business. In addition, the tax incentives already announced will serve as an attractive catalyst for companies to consider the Singapore market for their IPOs.

However, there is room for further improvement. One potential area is investor education. Retail investors, particularly the younger demographic, tend to gravitate towards overseas markets and more volatile assets like cryptocurrencies. Given that the current SGX retail base is largely aged 55 and above, efforts to engage younger investors could help diversify the investor base and encourage more participation in the local market.

Analyst coverage of mid- and small-cap stocks could also be enhanced. Analysts should be encouraged to identify and promote undervalued stocks with growth potential, rather than focusing primarily on large-cap companies. Brokers, too, should be more willing to engage with clients and promote growth and value stocks, aligning with investors ‘ risk appetites.

Lastly, attracting large, well-known companies to list on the SGX, such as PSA, Changi Airport, and NTUC, could serve as a powerful signal of the exchange’s competitiveness. Waiving or reducing some transaction fees and taxes could further reduce costs and make the SGX one of the most attractive trading platforms in Asia.

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S.5b nickel fraud trial: Venture capitalist testifies how he was ‘impressed’ by alleged fraudster Ng Yu Zhi

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SINGAPORE: A venture capitalist on Thursday ( Apr 3 ) testified how he came to invest in a scheme perpetuated by Ng Yu Zhi, the man said to be at the centre of an alleged billion-dollar nickel investment fraud. &nbsp,

Dr Finian Tan, the founder and chairman of Vickers Venture Partners- a worldwide enterprise money firm&nbsp, -&nbsp, said that he first met Ng in August 2020. &nbsp,

Ng impressed the enterprise bourgeois with his knowledge, eloquence and his apparent ability as a nickel trader, with Dr Tan yet remarking in court at one point that he was “amazed a young person could acquire so many online worth”. &nbsp,

Ng, 37, stands accused of duping 947 investors of almost S$ 1.5 billion ( US$ 1.12 billion ), of which more than S$ 481 million was allegedly channelled to his personal bank accounts and used to finance a lavish lifestyle. &nbsp,

According to the trial, Ng ran an elaborate scheme offering traders income from the purported price of natural copper from 2016 to 2021.

Through his companies Envy Global Trading ( EGT ) and Envy Asset Management, Ng purportedly deceived investors that he was buying nickel at a discount and selling it for sizeable profit.

In truth, there was no actual physical copper investing activity, and investors were rather paid with money invested by another investors, the prosecution has said. &nbsp,

Ng is currently contesting 42 charges comprising 15 counts of forgery, 14 counts of handling benefits from criminal conduct, 10 counts of cheating, two counts of fraudulent trading and one count of criminal breach of trust. &nbsp,

The remaining 66 charges have been stood down for the time being. &nbsp,

The trial, which began in November last year, has had professionals who counted themselves among Ng’s alleged victims testifying in court, including private banker Veronica Shim. Shim, the first witness to testify, is the former CEO of Envysion Wealth Management. &nbsp,

She was charged in March last year&nbsp, with conniving in Envysion’s failure to put in place an appropriate risk management framework for the fund, and failure to mitigate conflicts of interest arising from management of assets under the fund.

Shim is also accused of breaching the Official Secrets Act by forwarding an email thread between the Monetary Authority of Singapore and Envysion to Ng.

Other alleged victims named in charges include Temasek International general counsel Pek Siok Lan and former Law Society president Thio Shen Yi. &nbsp,

According to Ng’s charge involving Dr Tan, Ng allegedly deceived Dr Tan into delivering around US$ 19.2 million to EGT.

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Singapore-linked companies going big in China’s medical sector

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Mr Pua Seck Guan, executive chairman and CEO of Perennial Holdings, said its Tianjin job “opened up a lot of options” for the company.

” Quite a number of towns have truly approached us. But, since then, we have even given the first international wholly owned medical permission in Guangzhou, and we are now looking at doing it in various locations such as Shanghai”, he added.

The Singapore product has benefited both Perennial Holdings and Raffles Medical Group.

Dr Loo noted:” I think in China, ( the branding ) helps us. Chinese people … they expect us to be fair, had dignity … And of course, we have to show that we are trustworthy”.

Conflicts WITH WEST

China’s conflicts with the West have also meant a bigger playing area for Singapore-linked companies – also foreign-owned ones like Parkway, which is now owned by Indonesian health organization IHH.

Parkway Shanghai announced late last year that it will open a new flagship ambulatory care centre in downtown Shanghai this year. It opened its first medical centre in the city in 2006.

Dr Kenneth Tsang, regional CEO of IHH Healthcare North Asia, said Singapore’s reputation for high-quality medical care “means a lot for us”.

” Take for example, some of our competitors who were previously formally linked to very famous hospitals, let’s say, from the United States. The ability to continue to promote that US link is now becoming less important or less being promoted”, he added.

” And therefore, from our perspective, the ability to be linked to Singapore and promote the clinical service that we are exporting from Singapore into China is actually very, very important”.

While China’s medical sector has its unique challenges, it has created opportunities for foreign firms.

For instance, it was not the practice to visit a general practitioner clinic for minor ailments. &nbsp,

Dr Tsang said this is no longer the case.

” People are learning fast. They know ( going to the hospital ) is not always necessary, and therefore they are becoming more accustomed to the use of clinics”, he added.

As Chinese exports face a torrent of tariffs in the West, China has been actively promoting medical tourism to boost consumption within its borders – giving foreign medical firms, like those from Singapore, even more opportunities to thrive.

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Singapore leads move to set out guidelines for flying taxis, drones in Asia

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SINGAPORE: A set of rules are being developed for flying cars and robots in Asia, which industry experts believe will be a significant advance in terms of the expansion of this technology.

It might also encourage more businesses to enter the market and offer solutions like drone-based food and medicine sales, they added.

Singapore is currently working on these guidelines for civil aviation authorities in the area, which will cover unmanned aircraft systems, or drones, as well as electric vertical take-off and landing (eVTOL ) aircraft, better known as air taxis.

The Civil Aviation Authority of Singapore ( CAAS ) released a request for comments on the guidelines on Wednesday ( Apr 2 ) until Apr 23.

These research materials were created by CAAS in collaboration with 23 different officials in the Asia Pacific, including Malaysia, the Philippines, Thailand, and China.

The International Civil Aviation Organization did receive the components in September after being released in July.

According to CAAS director-general Han Kok Juan,” they assist authorities in ensuring people and aircraft safety and security while supporting the growth of new technology that has the potential to change how we live, shift, and work.”

They “help provide greater regulation clarity and regulatory alignment across various jurisdictions,” according to investors and companies, and this will help reduce confusion and governmental price.

Regulation QUESTIONS ARE ABOUND

The global eVTOL aircraft market is still profitable; it was worth S$ 6 billion ( US$ 4.47 billion ) last year and is expected to be worth S$ 5 billion in 2030.

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Are Trump Asia tariffs a ‘full-frontal assault’ on China?

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55 seconds ago
Annabelle Liang

Company analyst

Getty Images Chinese President Xi Jinping speaks during an international business meeting at The Great Hall Of The People on 28 March, 2025 in Beijing, China. Getty Images

On Wednesday, US President Donald Trump laid out tariffs on nearly all of America’s buying companions, and he had strong words for Beijing.

Trump said in his almost hour-long speech on Wednesday that he had a tremendous respect for President Xi Jinping of China and a great respect for China, but they were taking a lot of our lives.

Trump cited countries and territories on a chart that he claimed had created trade barriers for US goods as” China, first row, 67 %.” That includes money deception and trade barriers, as well as taxes paid to the USA.

He continued,” We will be charging ] them a 34 % discount reciprocal tariff.” In other words, they demand payment from us, we demand payment, and we demand less. How then can anyone get annoyed?”

The China’s Commerce Ministry then declared the action to be” a typical example of punitive abuse” and pledged to take “resolute measures to protect its rights and interests.”

Trump was also accused of “turning industry into an oversimplistic tit-for-tat game,” according to state news agency Xinhua.

According to researchers, Beijing has a compelling reason to be upset.

First of all, the most recent statement adds to the 20 % increase in Chinese products already in effect.

Second, it has” slammed the door shut” on how China rejigged its supply stores to get around the taxes imposed on Beijing during Trump’s second term by imposing hefty tariffs on various South East Asian nations like Cambodia, Vietnam, and Laos.

In the ten nations and territories that received the highest taxes, there were five Eastern countries.

China’s fees are rising in value.

Since returning to the White House in January, Trump has increased taxes by 20 % and has imposed new tariffs on Chinese imports.

These taxes will increase to 54 % in less than a week, with the exception of lower tariffs on goods like cars, metal, and aluminum.

Beijing has also been the subject of numerous other Trump business scandals.

The President signed an executive order before on Wednesday to close a prohibition against receiving low-value goods from China.

Without paying taxes or inspections, this had made it possible for Chinese e-commerce giants like Shein and Temu to send packages with a retail value under$ 800 ( £617 ) to the US.

According to norms data, near to 1.4 billion supplies entered the US as a result of the clause in the previous fiscal year.

The removal of the provision could result in lower US market competition for some Taiwanese companies.

Getty Images US President Donald Trump holds up a chart while speaking during a “Make America Wealthy Again” trade announcement event in the Rose Garden at the White House on 2 April, 2025 in Washington, DC. China is listed at the top of the chart, which states that it will face a 34% reciprocal tariff.Getty Images

This is a worrying image for Beijing when taken all together, according to Deborah Elms of the Hinrich Foundation consultancy.

” I don’t believe the new levies are primarily designed to target China. However, the numbers fast become eye-watering when the United States stacks taxes against China in particular.

” There will have to be retaliation from China and the Chinese.” They won’t be able to sit back and watch this, she said.

struck the supply network

Trump also imposed high tariffs on Vietnam, Laos, and Cambodia, ranging from 46 % to 49 %.

According to purchase company SPI Asset Management, Stephen Innes described this as” a full-frontal abuse on Beijing’s extended supply chain.”

Vietnam and other countries on the margins of what is shaping up to be the most violent rebalancing of US trade policy in a era, he continued. This is not “tit-for-tat,” it is” corporate containment via price warfare.”

Laos and Cambodia, two of the poorest nations in the region, are largely dependent on Chinese funding in supply chain infrastructure. Both nations are expected to suffer a lot from the higher tariffs.

Vietnam’s biggest dealing partner is China. During Trump’s second word, it was one of the main recipients of US-China conflicts.

Trump’s levies in China in 2018 caused some companies to reevaluate where they put their goods. Some people made the decision to relocate their factories to Vietnam.

This has resulted in a rise in exports from Vietnam to the US, with Chinese businesses that have moved their output it to contribute to that number.

Getty Images Employees work at a Chinese-funded textile and garment factory in the Kampong Chhnang Province in Cambodia. A female worker, wearing a blue uniform and yellow headgear, is putting the finishing touches on a dark blue striped shirt. Around her is a busy factory environment with workers sat at benches with sewing machines. Getty Images

Former US trade negotiator Stephen Olson told the BBC,” Vietnam was clearly targeted ] by Trump ] because of its role as a conduit for China’s circumvention of previous tariffs.

China is Vietnam’s largest provider of merchandise, accounting for more than a third of goods, despite the US still being the country’s largest exporter, according to the most recent official data.

Foreign companies lag behind almost one in every three new opportunities in Vietnam last year, too.

The new levies on South East Asia did remain “prohibitive” for China, according to Pushan Dutt, a professor at the INSEAD business school.

In the previous Trump administration, their businesses had deftly reacted to taxes by moving supply chains to [South East Asian Nations ] because China has a problem with desire. He continued,” This lock has been slammed shut.”

Trump’s income on the area will have an effect on US businesses that produce goods in South East Asia.

For example, American companies like Nike and Apple, which are both tech giants, have sizable factories in Vietnam.

According to a recent survey conducted by the American Chamber of Commerce in Vietnam, the majority of US companies that anticipate staff layoffs if taxes are imposed.

away of” Hard options”

Given that it has only a few days before the new tariffs are effective, what does China do to counteract them?

Mr. Olson stated that he anticipates Beijing to implement taxes and other methods that will make it more difficult for US companies to conduct business in China.

Beijing will have to make” strong options” in the days to come, according to Professor Dutt.

Exporting to different locations “provokes de-industrialization in these locations,” and political leaders there are unlikely to agree. That requires China to eventually unlock domestic requirement and the Chinese home, he continued.

China may also try to form relationships with other Asian countries that have experienced tariff abuse as a result of the taxes.

Former China Communist Party member Wang Huiyao, who works for the Center for China and Globalization think tank, urged Asian nations to “work up to go through this tough time and fight protectionism.”

The US might eventually lose all of its control and become more isolated, he added.

Some conversations are currently taking place. The primary economic dialogue between China, South Korea, and Japan has just taken place.

They agreed to accelerate up the progress of the free trade agreement, which was first proposed over a decade ago.

The new levies might offer them a stronger motivation to do so.

Beijing may experience some temporary problems as the negotiations with Washington progress.

In the end, Mr. Olson said,” The US and China are headed for a negotiating tables where they’ll try to reach some sort of great deal on a wide range of problems.”

” I anticipate that didn’t happen very soon, and I’m hoping things will get worse before things get better,” he continued.

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China under pressure to retaliate as US tariffs hit harder and faster than expected

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Shein and Temu reportedly made up 30 % of the total size of the more than 1 billion boxes that China imported into the US in 2023, according to a report from the US parliamentary committee on China. &nbsp,

According to US Customs and Border Protection statistics, roughly 1.36 billion Chinese goods entered the nation in 2024. &nbsp,

Analysts anticipate that the move may be particularly problematic for smaller sellers who operate through Foreign e-commerce platforms, which directly target US consumers and consumers. This business model relies on ultra-fast, low-cost shipping to devalue US retailers. &nbsp,

These items are subject to customs delays, compliance challenges, and higher shipping costs as a result of the new regulations.

Exporters will likely see their packages being stopped at the border for a very long time as a result, according to Guo, adding that it will undoubtedly slow down the ( parcel screening ) process. They originally didn’t really care about this, which may cause a bigger pain.

According to EIU’s Su, who claims that the new levies may “ultimately possibly be passed on to US buyers half after part of the price is absorbed by US retailers, Chinese companies that already have “razor-thin” profit margins would have little space to bear extra costs. &nbsp,

Some Chinese companies have used free trade agreements and integrated production chains to avoid US tariffs over the years by rerouting shipments through Southeast Asian nations.

However, because nations in the region are also facing significant US tariffs today hitting both ends of this supply chain, that exit route will likely no longer be a” cost-effective solution.” &nbsp,

Rerouting Chinese imports may crash in nations like Vietnam, where they were originally partially rerouted and are now suffering greatly, according to Josef Gregory Mahoney, professor of politics and international relations at East China Normal University.

In the months to come, Mahoney said, Taiwanese companies will probably make moves to new markets. &nbsp,

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Tariffs on India: Can Trump’s sweeping global duties spark a manufacturing boom?

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last an afternoon
Soutik Biswas
Getty Images Employees at a garment manufacturing factory of Viraj Exports Pvt. in Noida, Uttar Pradesh, India, on Tuesday, Oct. 11, 2022Getty Images

Donald Trump’s broad tariffs have impacted global commerce, but disruption frequently leads to new opportunities.

Starting 9 April, Indian goods will face tariffs of up to 27% (Trump’s tariff chart lists India’s rate as 26%, but the official order says 27% – a discrepancy seen for other nations too). Before the tariff hike, US rates across trading partners averaged 3.3%, among the lowest globally, compared to India’s 17%, according to the White House.

India “presents an opportunity” in textiles, electronics, and machinery” with the US imposing even higher tariffs on China ( 54 % ), Vietnam ( 46 % ), Thailand ( 36 % ), and Bangladesh ( 37 % ), according to the Delhi-based think tank Global Trade Research Initiative ( GTRI ).

Great export tariffs for China and Bangladesh give Indian textile manufacturers more room to grow in the US market. If Taiwan’s system and plan help are strengthened, India can tap into package, testing, and lower-end chip production, despite Taiwan’s dominance in electronics. Even a 32 % tariff-driven limited supply chain transition from Taiwan might benefit India.

The industries that are dominated by China and Thailand are mature for tariff-driven transfer, especially in the fields of technology, cars, and products. According to a word from GTRI, India can make money by attracting purchase, expanding production, and increasing exports to the US.

May India be able to capitalize on the occasion?

Higher taxes have raised costs for businesses that are dependent on global value chains, putting strain on India’s ability to compete in foreign markets. India has a major trade deficit despite growing imports, largely driven by services. India accounts for only 1.5 % of global exports. Trump has consistently referred to India as a “tariff ruler” and a “big offender” of trade ties. With his fresh taxes, there is a concern that Indian imports will be less aggressive.

Reuters A man walks past a screen displaying U.S. President Donald Trump, at the Bombay Stock Exchange (BSE) ahead of Trump's tariff plans, in Mumbai, India, April 2, 2025Reuters

Nevertheless, Ajay Srivastava of GTRI believes that the US’s mercantilist price regime could spur India’s benefit from global supply chain adjustments.

India may improve its ease of doing business, invest in shipping and equipment, and uphold policy balance to fully exploit these options, according to the statement. If all of these requirements are met, India is well-positioned to become a major international hotspot for manufacturing and exporting in the upcoming years.

That’s much simpler to say than to do. Places like Malaysia and Indonesia may be better positioned than India, according to Biswajit Dhar, a business professional from the Delhi-based Council for Social Development think pond.

” We may have some lost ground in the garment industry then that Bangladesh is subject to higher tariffs, but the reality is that we have treated the industry as a twilight sector and made no investments.” How may we really benefit from these tax changes without expanding our ability? says Mr. Dhar.

Since February, India has ramped up efforts to win Trump’s favour – pledging $25bn in US energy imports, courting Washington as a top defence supplier and exploring F-35 fighter deals. To ease trade tensions, it scrapped the 6% digital ad tax, cut bourbon whiskey tariffs to 100% from 150% and slashed duties on luxury cars and solar cells. Meanwhile, Elon Musk’s Starlink nears final approval. The two countries have launched extensive trade talks to narrow the US’s $45bn trade deficit with India.

However, India was unable to leave the price war.

India may be concerned because there was a possibility that continuing trade negotiations would protect it from bilateral tariffs. According to Abhijit Das, former mind of the Centre for WTO Research at the Indian Institute of Foreign Trade, imposing these taxes right now is a significant setback.

Getty Images Workers assemble mobile phones at a Dixon Technologies factory in Noida, Uttar Pradesh, India, on Thursday, Jan. 28, 2021.Getty Images

One upside: pharmaceuticals are exempt from reciprocal tariffs, a relief for India’s generic drug makers. India supplies nearly half of all generic medicines in the US, where these lower-cost alternatives account for 90% of prescriptions.

Exports in important industries like technology, executive products, automotive components, industrial machines, and marine products could suffer, yet. Given the significant investments made through India’s flagship “production-linked incentives” ( PLI ) schemes to boost local manufacturing, it would be especially troubling for electronics.

” I’m concerned about the capacity of our producers because many of them are small producers who will struggle to withstand a 27 % tax increase, making them unprofitable.” The problem only gets worse as the firm costs go up, and the trade infrastructure keeps getting worse. According to Mr. Dhar,” we’re at a big disadvantage.”

Some people believe that Trump’s bargaining chip in India’s trade negotiations is these taxes. The most recent statement from the US Trade Representative reveals Washington’s dissatisfaction with India’s business practices.

The report, which was made public on Monday, highlights India’s tight import regulations for dairy, pork, and fish, which require non-GMO certification without any supporting evidence from science. Additionally, it criticizes India’s slow acceptance of genetically modified products and stent and implant prices.

India has been placed on the” Priority Watch List” due to concerns over intellectual property rights, which the report cites insufficient patent privileges, and lack of business secret laws. The record also has concerns about limiting dish policies and mandates for data localization, which further strain trade ties. Washington is concerned that India’s regulatory strategy is extremely in line with that of China. US exports could increase by at least$ 5.3 billion annually if these obstacles were removed, according to the White House.

Being in the middle of business negotiations just makes our risk worse, according to the author. This isn’t just about business exposure; it’s the whole package, according to Mr. Dhar. Additionally, expanding your opportunities and gaining a competitive advantage over Vietnam or China takes period.

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Multiple probes into Chinese firms behind collapsed high-rise

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In: South-East Asia

Main focus is on construction contractor and steel supplier, says minister

PUBLISHED : 3 Apr 2025 at 14:36

UPDATED : 3 Apr 2025 at 16:09

Officials search a house believed to be linked to China Railway Engineering​ No.10 (Thailand) Co, in Din Daeng district of Bangkok, on Wednesday. (Police photo)
Officials search a house believed to be linked to China Railway Engineering​ No.10 (Thailand) Co, in Din Daeng district of Bangkok, on Wednesday. (Police photo)

Numerous Thai government agencies are investigating two Chinese companies responsible for the construction of the collapsed State Audit Office in Bangkok, with probes expanding to many other related companies, according to the Ministry of Commerce.

The investigations focus on China Railway Engineering No.10 (Thailand) Co (CREC) and Xin Ke Yuan Steel Co, in which Chinese people held 49% and 80% stakes respectively, Commerce Minister Pichai Naripthaphan said on Thursday.

Initial investigations found possible violations of many Thai laws including the law governing foreign ownership of certain businesses. The Department of Business Development has sent information about the companies to the Department of Special Investigation, which has agreed to investigate them, the minister said.

CREC was a partner with SET-listed Italian-Thai Development Plc in the ITD-CREC consortium that was building the new State Audit Office, which collapsed during the Myanmar earthquake on March 28, and some of the construction materials used came from Xin Ke Yuan Steel.

CREC was related to 13 other companies while Xin Ke Yuan Steel had connections with 24 companies. The DSI is also reviewing information on those connections, Mr Pichai said.

According to Deputy Commerce Minister Napintorn Srisunpang, the Department of Business Development is now investigating CREC and 13 companies in its network. The Anti-Money Laundering Office is looking into the financial transactions of the companies, shareholders and stakeholders. The Revenue Department is checking the tax payments of the companies and shareholders.

The Thai Industrial Standards Institute has been testing the quality of steel and other construction materials used in the building. Tests done earlier by the Iron and Steel Institute of Thailand indicated that steel supplied to the project by Xin Ke Yuan Steel Co was substandard.

It was also learned that the Rayong factory of the steelmaker had been closed since January for an unrelated violation, and 2,400 tonnes of steel seized.

The Department of Employment, meanwhile, is examining the work permits of migrant workers who were on the site of the 30-storey State Audit Office project. The Department of Industrial Works is inspecting all the steel plants that supplied the contractor. The Department of Land is investigating land ownership by Thais and foreigners involved in the businesses, and the Comptroller-General’s Department is looking into procurement and contracts.

Mr Napintorn said the probes covered at least 26 projects being carried out by 14 companies linked to CREC and Xin Ke Yuan Steel, in order to prevent possible damage to life and property.

Rapid expansion, soaring debt

China Railway Group, the parent company of China Railway No.10, got its start building most of China’s 45,000 kilometres of high-speed rail lines. But in recent years, as demand for new projects at home faded, the company and its many subsidiaries have expanded their scope in a rush to bring in work.

Many of the projects abroad have been related to Beijing’s Belt and Road Initiative and other activities prioritised by the government.

As the expansion gathered pace, the company’s debt soared. Its 2024 annual report showed total liabilities worth $211 billion, almost double the $112 billion reported five years ago, according to the New York Times.

Victor Shih, a specialist in Chinese politics and finance at the University of California, San Diego, told the newspaper that when a company has such a heavy debt burden, “the pressure to generate cash flow to service debt can be quite intense”.

The Chinese embassy in Bangkok has urged CREC to cooperate with Thai authorities.

Chinese authorities have always instructed the country’s companies to abide by local laws and adhere to social responsibility when doing business abroad, the embassy said in a statement on Facebook.

“China will still support and assist according to Thailand’s needs, and calls on the Chinese company involved to fully cooperate with the Thai government’s investigation,” the embassy said. “We believe the Thai government’s investigation will lead to scientific and fair conclusions.”

China Railway No.10 had won 11 Thai government contracts, including a school building that is already completed. The Ministry of Transport has begun scrutinising some of those projects, including a part of the Thailand-China high-speed railway project that was awarded to the ITD-CREC joint venture, Transport Minister Suriya Juangroongruangkit said on Wednesday.

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