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Monday, August 4, 2025

Rise of the machines in China


   

   

 When Sun Huihai first began working at a factory in the southern manufacturing belt of Guangdong some 13 years ago, his colleagues were all humans.

Now, they are joined by more than 200 robots which can work around the clock, seven days a week, to help produce air-­conditioners for home appliances giant Midea.

Rows of bright orange robot arms whir at all hours of the day, fishing freshly pressed plastic parts out of hot metal moulds and onto a long conveyor belt.

Driverless robots with blinking lights store these parts in a multi-­storey warehouse, and later take them to be assembled into units that are sold in China and around the world. 

The number of robots put to work on the factory floor increases every year, said Sun, 37, who heads the plant’s engineering department.

“Every day, we think about how to upgrade and make manufacturing here more intelligent,” he said.

Scenes like this have become more common across China, as the “factory of the world” turns to robotics to sustain and turbocharge its manufacturing juggernaut.

Over the past decade, the number of industrial robots on China’s factory floors has increased more than six times to over 1.7 million, as companies grappled with ri­­sing wages and a shortage of workers willing to staff production lines.

China now has the world’s third-highest density of robots in its manufacturing industry, trailing South Korea and Singapore in first and second place respectively, according to the International Federation of Robotics’ figures for 2023, the latest available.

Their deployment is poised to increase further as China conti­nues its transition from low-­value, labour-intensive production to advanced manufacturing – a national priority.

Policymakers in China, wary of the hollowing out of industries which can occur when countries get richer, have long pushed for greater automation to keep factories competitive.

Factories in China pumped out nearly 370,000 of industrial robots in the first half of 2025, up 35.6% from the previous year, according to figures from the National Bureau of Statistics.

But as robot adoption picks up pace, one question that arises is: What will happen to the more than 100 million workers whom China’s manufacturing sector employs?

Academics Nicole Wu and Sun Zhongwei, who interviewed and surveyed factory workers in southern China just prior to the Covid-19 pandemic, found that these individuals were not too concerned about robots just yet.

“Contrary to the more pessimistic assessments of automation, most manufacturing workers in Guangdong – who are buffered by steady increases in demand and a chronic labour shortage – appear to be unfazed by technological change at present,” they wrote in a paper published this year.

Back at the Midea factory, Wang Liangcai, 26, an engineer, believes that his job is safe from automation for now.

“Equipment still needs to be maintained, it can’t do so itself,” he said.

“But if you think about the long run ... we also don’t know how things will be.” — The Straits Times/ANN

Sunday, August 3, 2025

US revises tariff rate to 19%

 

 However, nation must urgently diversify its export destinations

PETALING JAYA: Malaysia’s revised tariff rate of 19% on exports to the United States offers a temporary competitive edge in the region but underscores the urgency for export diversification amid signs of growing US protectionism, economists warn.

Prof Emeritus Dr Barjoyai Bardai said the revised rate, down from 25% previously, positions Malaysia on par with neighbou­ring countries such as Thailand, Indonesia, Cambodia and the Philippines.

ALSO READ: Malaysian industries can breathe easier now

He said the rate is still more favourable than those imposed on Myanmar (40%), Vietnam (20%) and Taiwan (20%).

“We seem to be able to compete with our neighbouring countries. But we are far behind Singapore at 10%, as well as Japan and South Korea at 15%.

“With India at 25%, we are in a better position,” he said when contacted. What we really want to see is that the tariff imposed on Malaysia is as low or better than that of countries that are our competitors because we are exporting to the United States.

“So, if those countries have equal or higher tariffs than us, then our ability to compete remains intact,” he added.

However, he said that certain Malaysian exports may be vulnerable, especially low-­margin products such as solar panels, and electrical and electronic goods.

On the trade balance with the US, he said it depends on whether Malaysian imports from the US increase significantly, especially luxury goods, following the government’s decision to scrap the luxury tax.

“Although the luxury tax has been included in the expanded SST, the rate is still low,” he added.

He said Malaysia must urgently diversify its export destinations, as the US moves towards a more self-sufficient economy.

Barjoyai said semiconductors should be directed to countries with growing demand, such as China, India and Europe.

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For other items like solar panels, he said Malaysia should consider Latin America, Canada and Europe.

“There are still many untapped markets. In the long run, the United States will become a domestic-driven economy where they will seek to reduce imports.

“Today, they are already about 80% self-sustaining,” he added.

Echoing similar concerns, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the tariff adjustment signals that the United States remains open to dialogue, but the economic implications for Malaysia remain.

“As a result of recent discussions, the previously imposed retaliatory tariffs of 25% have now been reduced to 19%.

“Consequently, the negative impact on Malaysia’s economy is expected to be slightly mitigated.

“In this regard, Bank Negara has revised its GDP forecast for 2025 to a range of 4.0% to 4.8%, down from the earlier projection of 4.5% to 5.5%,” he said.

Afzanizam also highlighted the potential global impact of US ta­riffs.

“The 19% import tariff is expected to impact American consumers’ purchasing power.

“This may, in turn, dampen economic momentum in the US, which is the world’s largest econo­my. It poses a potential risk to glo­bal economic growth in the coming years,” Afzanizam said.

He also called for a balanced approach to foreign relations and economic strategy.

“It is crucial to preserve strong bilateral ties with the United States, while simultaneously exploring new opportunities with countries in Europe, the BRICS bloc, and strengthening economic and diplomatic cooperation within Asean.

“At the same time, efforts to boost productivity, build capacity and enhance economic resilience must be intensified to safeguard Malaysia’s economic sovereignty.

“These measures will reinforce investor and business confidence, underpinned by pragmatic policies and the government’s proactive response to emerging challenges,” he added.

Centre for Market Education chief executive officer Carmelo Ferlito, meanwhile, said the tariff revision reflects a political strategy rather than a pure economic measure.

“The reciprocal tariff on Malay­sia to 19% is the proof of what I have mentioned earlier,” he said, adding that US President Donald Trump was not interested in ta­riffs per se, but to reopen negotiating tables.

He said this is to show that the United States is the biggest consumer in the world and force countries to get closer to the United States as well as grant commercial facilitations.

Ferlito criticised the use of ta­riffs as a policy tool, arguing that they hurt both consumers and workers.

“Tariffs are bad, not just for Malaysia, but for the world,” he said, adding that ultimately, ta­riffs reduce trade opportunities.

“This means less choice for consumers, but also job losses, on both sides,” he added.

Sunday, July 13, 2025

BE LABEL-SAVVY TO STAY HEALTHY for organic food among health-conscious consumers

 

PETALING JAYA: The multi-billion-­ringgit global organic food and beverage market is expected to grow more by 2030, according to market research firm Grand View Research.

For Malaysia, there is a growing appetite for organic food among health-conscious consumers.

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But how do people know whether the “organic” foodstuff they buy are truly organic?

An important source is the myOrganic sticker that is usually found on the packaging of organic foodstuff sold at shops.

The myOrganic certification scheme is used to promote, implement and facilitate the adoption of organic agriculture, explains Agriculture Department (DOA) director-general Datuk Nor Sam Alwi.

“This certification scheme covers various organic activities, including fresh produce farming, beekeeping, the breeding of organic plant varieties and wild harvesting.

ALSO READ: Verifying food markers not quite an organic process

“The Malaysian Organic Certification Scheme is now known as myOrganic,” she said in in a statement to The Star.

To safeguard the authenticity of certified organic products, the regulation of organic items is primarily governed under the Food Act 1983 and Food Regulations 1985, overseen by the Health Ministry, she added.

The Agriculture and Food Security Ministry has also registered the myOrganic certification logo with the Intellectual Property Corporation of Malaysia (MyIPO) as a legitimate trademark.

“If the DOA receives complaints about the misuse of this logo, the matter will be referred to the Domestic Trade and Cost of Living Ministry for further investigation.

“In cases where fraud is confirmed, the offending company may be prosecuted under the Trademarks Act 2019,” she said.

Upon conviction, offenders may face a fine of up to RM10,000 per item bearing the misused trademark, imprisonment of up to three years or both.

ALSO READ: How bugs help you spot organic durians

Nor Sam said the department has issued guidelines to certificate holders outlining the terms and conditions for the use of the myOrganic logo.

“However, we also rely on the cooperation of consumers to address the risks of fraud and logo misuse by lodging complaints where appropriate.

“Matters related to processing, repackaging or importation of organic products fall strictly under the jurisdiction of the Health Ministry,” she said.

To create awareness, the department is actively carrying out promotional activities targeting consumers through physical events and social media platforms, as well as by engaging with local organic associations.

“These initiatives focus on promoting Good Agricultural Prac­tices (GAP), highlighting the importance of recognising the myOrganic logo, encouraging the purchase of certified farm produce.

“Additionally, consumers can verify the validity of organic certification by visiting the DOA website at www.doa.gov.my under the list of certified recipients,” she said.

Dr Juju Nakasha Jaafar, senior lecturer at the Faculty of Agri­culture at Universiti Putra Malay­sia, said there has been confusion on the authenticity of organic products.

“For example, a seller might claim he is selling pesticide-free or chemical-free vegetables, which gives consumers the impression that the products are organic.

“In reality, these vegetables may be free from chemical pesticides but are still grown using chemical fertilisers and thus do not qualify as organic,” she said.

“For vegetables to be certified as organic, all input must be completely natural.

“This includes compost fertilisers, organic pesticides and non-genetically modified organism seeds.”

These are outlined in the myOrganic certification guidelines.

“Consumers can look for the myOrganic logo on vegetable products to ensure they are truly organic.

“The DOA strictly regulates this certification,” she said, adding that more details can be found on the DOA website.

Federation of Malaysian Consumers Associations (Fomca) secretary-general Dr Saravanan Thambirajah said traders must verify the certification documents provided by suppliers before selling or labelling any product as organic.

“They should only use the term ‘organic’ when backed by certification,” he said.

Saravanan said consumers should look for official certification logos on packaging and not rely solely on general claims like ‘natural’.

“If you suspect a product is being falsely marketed as organic, you should report it to the Domestic Trade and Cost of Living Ministry or lodge a complaint with Fomca,” he added.--

By KHOO GEK SANDIVYA THERESA RAVIRAGANANTHINI VETHASALAM

https://www.thestar.com.my/news/nation/2025/07/12/be-label-savvy-to-stay-healthy