halal rules and Bumi barriers contributed to the 25% tariff
- Ex-US trade official urges Malaysia to review strategy as 25% tariff looms
- Stephen Olson says M'sia offered insufficient concessions
- former US trade negotiator called on M'sia to modify strategy
- 25% tariff on imports from the country from Aug 1.
- up from 24% tariff US originally proposed
- Stephen Olson said concessions M'sia offered insufficient
- “M'sia should review specific complaints raised by US
- Malaysia’s long-standing tariff and non-tariff barriers.
- halal rules and Bumi barriers contributed to the 24% tariff
- Msia’s halal standards exceed international norms
- halal-only facilities, complex processes, increase costs, delay exports
- investment barriers, 30% Bumi ownership
- restrictions in oil and gas, media, public procurement.
- Bumi policy, local vendor requirements, strategic sectors — remain unchanged
- Economist Geoffrey Williams proposed pragmatic easing of restrictions
- may not necessarily shift demand away from local products
- Malaysia could remove tariffs and non-tariff barriers
- leave the choice to consumers and businesses
My Comments: Here is a five year old news story.
My Comments: So now we are getting hit by a 25% tariff by the United States for reasons which include the 30% Bumi equity policy. But the late Tun Daim who was our Finance Minister has said that even he did not know where this 30% number came from.
So how? An inexplicable and mystery number became "economic policy" and now the economy is going to suffer even more because some unthinking people wish to defend a policy for which there are no explanations, justifications or evidence.
I will not waste your time. I have already said this multiple times. The rich will be protected. The ordinary you and me will have to pay more.
The American fellow said: leave the choice to consumers and businesses.
Not in Malaysia. There is no free market in Malaysia. In Malaysia much of the tariff and non-tariff barriers against imports benefits the rich. The rich are the ones who own equity in anything. The poor, the B40, the makcik and pakcik do not own equity in anything.
The monopoly licenses, the import permits, quotas are the domain of the rich.
When imports become expensive the prices of local products will also increase. Because the Malaysian consumer has little or no choice to buy a substitute imported product at a competitive price. So the local producers will also raise their prices. This is how things work.
So for the past 50 years it is the ordinary citizen who has been subsidising our very foolish import-restriction policies. When you restrict imports the people become poorer. There are no free lunches. Whenever the politicians dream up 'new economic policies' someone has to pay for it. YOU pay for it.
