International News 06/12
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Malaysia: US Tariffs on BRICS Members Affect Semiconductor Supply
Malaysia has voiced its apprehension regarding the potential imposition of tariffs by the Trump administration on BRICS countries for the establishment of new currencies or the utilisation of alternatives to the US dollar. Malaysia, which has applied to join the BRICS grouping, has cautioned that such tariffs could have a disruptive impact on the global semiconductor supply chain. The United States is Malaysia's third-largest trading partner, and its semiconductor sector relies significantly on investments from American companies. Malaysia accounts for approximately 13% of global chip testing and packaging, making it a crucial centre in the industry. The Malaysian Commerce Minister highlighted the interdependence of both parties and stated that imposing tariffs would be mutually disadvantageous. The BRICS grouping, which initially included Brazil, Russia, India, and China, has the objective of challenging the dominance of Western economies in the global economic order. While Malaysia has submitted an application to become a member, it has not yet been approved.
South Korean stocks plummet on rising political uncertainty
South Korean stocks saw a second consecutive day of losses as political uncertainty and calls for the impeachment of the country's president continued to weigh on investor sentiment. The Kospi index saw a 0.25% decline on Thursday, following a 1.4% drop the previous day. The parliament has submitted a motion to impeach President Yoon Suk Yeol due to an unsuccessful attempt to impose martial law. However, his party has vowed to oppose the move, creating uncertainty around the impeachment process. Notable stocks in the index demonstrated a mixed performance, with shares of Samsung Electronics and SK Hynix exhibiting an upward trend, while those of Hyundai Motor and Kia Corp experienced a decline. Naver and Kakao, the search engine and instant messenger respectively, demonstrated divergent performance. Foreign investors divested holdings valued at $157.7 million. The South Korean government has announced plans to activate a market stabilisation fund with a value of $28.35 billion in order to address the current volatility.
South Korea's ruling party to oppose impeachment of President Yoon Suk Yeol
The South Korean parliament has proposed the impeachment of President Yoon Suk Yeol following his unsuccessful attempt to impose martial law. The People's Power Party, of which Yoon is a member, has pledged to oppose the move, although the party is currently divided over the crisis. The opposition Democratic Party, which holds a majority in parliament, requires the support of at least eight ruling party lawmakers to pass the bill. The impeachment proposal follows an incident in which armed forces attempted to break into the National Assembly building in Seoul but were later repelled by parliamentary aides. Democratic Party lawmaker Kim Seung-won stated that Yoon's declaration of martial law has caused confusion and fear among the people. The vote on the impeachment could take place as early as Friday.