US Tariffs and Malaysia: A Test of Enduring Partnership
The recent announcement of a 25% import tariff by the United States on products from Malaysia, effective August 1, 2025, has sent ripples through the Malaysian economy. While these tariffs may be legally justified under international trade rules, they undeniably represent a significant challenge for Malaysia, especially for its vital export sectors. This development, though concerning, underscores the need for strategic agility and reinforces the enduring importance of the bilateral ties between these two nations.
A Long-Standing Economic Relationship
Bilateral ties between Malaysia and the United States date back to Malayan independence in 1957. The US has consistently been one of Malaysia's largest trading partners and is traditionally regarded as a close ally in military, economic, and education sectors. This deep-rooted relationship has fostered significant trade, with Malaysian exports playing a crucial role in various US industries.
The Immediate Impact: A Blow to Key Sectors
The 25% tariff is a direct blow to several of Malaysia's key export sectors, making Malaysian products more expensive and potentially less competitive in the US market.
Electrical and Electronics (E&E): This sector is particularly vulnerable, as E&E products account for a significant portion of Malaysia's exports to the US. While semiconductors have reportedly been exempted, other non-semiconductor E&E products, such as computers and industrial equipment, are directly impacted. This could lead to reduced demand, squeezed profit margins for manufacturers, and a potential slowdown in production.
Manufacturing: The broader manufacturing sector, which is a major contributor to Malaysia's GDP, will face considerable setbacks. Lower corporate earnings, postponed new investments, and a decline in overall production are expected.
Palm Oil: Malaysia is a dominant global producer of palm oil. While the market may absorb some of the cost due to the lack of a direct substitute in the US, the tariff still adds a burden to exporters.
Textiles: The textile industry will also experience intensified pressure, especially for companies operating on thin margins.
Rubber Products (including gloves): As a major global supplier of rubber products, particularly medical gloves, this sector will face increased costs for US buyers, potentially leading to a decline in demand.
Beyond these specific sectors, the tariffs could also lead to a decline in overall exports, reduced tax revenue for the Malaysian government, and a potential threat to foreign direct investment as companies may reconsider Malaysia as an "at-risk" country for business-friendly and cost-effective policies. The Malaysian Ringgit could also weaken due to a decrease in US dollar earnings from exports, potentially leading to higher prices for imported goods.
TESSA 15 July 2025
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The Growing Weight of a Nation: Understanding Malaysia's Obesity Challenge
Malaysia is grappling with a significant health concern: a rising obesity rate. With nearly 20% of its population classified as obese, and projections indicating this could surge to 41% by 2035 according to the World Obesity Atlas, the urgency for effective strategies is clear. This isn't just a number; it represents a tangible impact on individual lives and the nation's healthcare system.
Why is Obesity So High in Malaysia?
Several interconnected factors contribute to Malaysia's high obesity rates:
Dietary Habits: A major culprit lies in the nation's beloved cuisine. While delicious, many iconic Malaysian dishes, such as nasi lemak and roti canai, are often high in calories, fat, and sugar. This, coupled with an increasing reliance on eating out and the prevalence of calorie-dense, nutritionally poor options in fast food and convenience stores, contributes to excessive energy intake. Studies show that the consumption of fruits, vegetables, and milk products is often lower than recommended, while intake of carbohydrate-based foods, meat, and fats, oils, and sweets can be high.
Physical Inactivity: Alongside dietary patterns, a lack of regular physical exercise is a significant factor. Malaysia has been identified as one of the least physically active countries globally, with over 60% of adults essentially sedentary. The National Health and Morbidity Survey (NHMS) 2023 highlights that 1 in 3 adults in Malaysia are not physically active, and an alarming 84% are inactive in sports, fitness, or leisure activities. Increasing reliance on private vehicles and a lack of safe infrastructure for walking and cycling further discourage physical activity in daily life.
Socio-Environmental Factors: Urbanization and the changing food environment play crucial roles. The constant availability of readily accessible, often unhealthy, food options makes it challenging to maintain a balanced diet.
Malaysia: The Most Obese in Southeast Asia?
Yes, among Southeast Asian countries, Malaysia has recorded the highest adult obesity rate. Between 1996 and 2015, the prevalence of obesity among adults in Malaysia saw a four-fold increase, jumping from 4.4% to 17.7%. The National Health and Morbidity Survey (NHMS) 2019 reported that 19.7% of Malaysian adults were obese, and the National Health Screening Initiative 2023 indicated this had risen to 22.2% (with 31.3% overweight), demonstrating a continued upward trend.
In comparison to its neighbor, Singapore's adult obesity rate, based on the 2021/2022 National Population Health Survey, is 11.6% among residents aged 18 to 74. This represents an increase from 10.5% in 2019/2020. The prevalence is higher in males (13.1%) than in females (10.2%), and obesity rates are highest among adults aged 40 to 49, at 15.0%.
Looking further into Asia Pacific, Vietnam and India have some of the lowest obesity rates, at 1.7% and 1.9% respectively.
Obesity by Race in Malaysia
Data from past surveys has highlighted differences in obesity prevalence among racial groups in Malaysia. For instance, the NHMS 2019 data revealed that overweight and obesity levels were particularly high among ethnic Indians (63.9% combined overweight and obese). While more recent granular data by race from NHMS 2024 is still being analyzed, earlier findings (from a 2008 study) showed the highest prevalence of obesity among Indians (24.6%), followed closely by Malays (23.2%), and the lowest prevalence among Chinese subjects (8.2%).
Lessons from Japan: A Low Obesity Rate Model
Japan stands out with a remarkably low obesity rate. This can be attributed to several factors:
Traditional Dietary Habits: While modern influences are present, traditional Japanese diets generally emphasize fresh, unprocessed foods, smaller portion sizes, and a lower intake of saturated fats and sugar.
Higher Food Prices: Food prices in Japan are generally higher, which can indirectly encourage more mindful consumption.
Active Lifestyles: The Japanese are notably more physically active in their daily lives, often relying on walking and cycling for transportation, rather than solely planned exercise.
Addressing the Challenge
The rising tide of obesity in Malaysia is a complex issue with deep roots in dietary habits, physical activity levels, and socio-environmental factors. Understanding these contributing elements, and looking to successful models like Japan, can help inform comprehensive strategies for prevention and treatment. This includes promoting healthier eating habits, encouraging greater physical activity as part of daily routines, and creating environments that support healthy lifestyle choices for all Malaysians.
TESSA 3 July 2025
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