Sales, Services Excluded from Trade Deficits?

Since the 1980s, successive American administrations have focused almost exclusively on merchandise trade—exports and imports of tangible goods—while downplaying, if not outright excluding, the significant surplus the US enjoys in services and sales, especially in the Asia-Pacific region. 

Source: https://www.wikidata.org

 

This selective accounting distorts the real economic balance, particularly with countries like Malaysia, and fuels false narratives about the American decline. For Malaysia, the implications are significant. Malaysia’s trade with the US is heavily scrutinised in goods: semiconductors, refined petroleum, furniture, and rubber gloves. The omission of services is not merely a technical quirk—it is a strategic blind spot with geopolitical consequences.

The US economy is fundamentally service based with services constituting over 77 per cent of the US gross domestic product (GDP) in 2025. This includes high-margin sectors like finance, insurance, intellectual property licensing, legal consulting, digital platforms, and education.

American firms like Google, Microsoft, Meta, and Netflix generate billions in digital service revenues abroad—revenues which often go untaxed, untracked, or underreported in bilateral trade statistics. Take Malaysia, for example. While the US routinely posts a goods trade deficit with Malaysia—largely due to electronics, palm oil derivatives, and rubber products—it enjoys a substantial and growing surplus in services.

American universities recruit Malaysian students. US technology (tech) firms earn from advertising, cloud storage, and software subscriptions. Professional services, legal advisories, management consulting, and intellectual property (IP) royalties further tip the scale. Yet none of this is properly counted when the US complains of being “cheated” by Malaysia or Asean countries.

Why does the US exclude services? The answer is partly political. Trade deficits, when measured only in goods, make for easy headlines. They provide ammunition for nationalist agendas, especially under administrations like Donald Trump’s. In this distorted view, countries like China, Vietnam, and Malaysia appear as villains running surpluses at America’s expense. But if services were included, the picture would change dramatically.

The US ran a global surplus in services—nearly US$300 billion in 2024. Its surplus with Asia is even more pronounced in sectors like cloud computing, e-commerce logistics, financial technology, and software-as-a-service (SaaS). Including these would undercut the very rationale for tariffs, sanctions, and supply chain decoupling policies aimed at the Asian economies. By refusing to account for the services surplus, Washington perpetuates outdated trade assumptions, ignoring how value is now added not just in factories, but in data centres, virtual classrooms, and financial technology (fintech) platforms. The omission of services also reveals deeper contradictions in the American hegemony. On one hand, the US demands that Asia respect intellectual property rights, open up digital markets, and align with Western data governance norms. On the other hand, it refuses to transparently account for its own dominance in these very sectors.

When US policymakers believe they are in economic decline based on skewed statistics, they overreact—imposing tariffs, reshoring industries, and pressing allies to decouple from China. This distorts global trade flows and puts Asean in an uncomfortable position of having to choose sides, despite its non-aligned ethos. 

A real partnership requires honesty, especially in a post-pandemic world where services and digital flows define economic power. The US must modernise its trade narratives to reflect its real strengths. By continuing to exclude services, it not only misreads its position but risks alienating the very partners it needs in Asia. America’s trade deficit is less a reflection of weakness than a failure to count what truly counts.

Reference:

Blog by Phar Kim Beng, Professor of Asean studies, International Islamic University Malaysia, 19 April 2025

Economic Opportunities for Malaysia with Trump’s Tariffs

Although Trump’s tariffs have negative consequences to many nations, including Malaysia, there ae several beneficial opportunities. And these include: 

(i)          Manufacturing and FDI

Malaysia is a top alternative for manufacturing electronics, semiconductors and medical devices. Malaysia controls 13% of global chip testing and packaging (Intel, Infineon, Bosch etc.) 

The opportunity is there for U.S. firms to shift production from China to Malaysia. The risk in this is the competition from Vietnam and Thailand.

 

Source: https://en.wikipedia.org

 

(ii)        Tourism Boost

As entering the US is becoming rather unwelcoming, Malaysia has a niche for affordable luxury in medical tourism, eco-tourism and MICE.

 

(iii)      Education and Talent Attraction

US visas for foreign students will be restricted. That’s an opportunity for affordable, quality tertiary and other education in Malaysia. We have branch campuses of Nottingham, Monash, Herriot-Watt, Reading and many other universities. 

Then there is the opportunity to develop our very own R&D clusters at universities or otherwise. Many researchers and talented academic staff may no longer retain a valid visa in the U.S. and/or face funding issues for research at major universities like Harvard, Columbia, Stanford etc. That’s an opportunity to recruit these talents with adequate funding for AI and other new technologies.

 

(iv)      Wealth Migration and/or Business Relocation

With lower cost in Malaysia, the MM2H visa should be promoted for an influx of Americans and others moving out of their home countries. 

 Malaysia also has a pool of English-speaking graduates who could be employed in any business relocation. This is not possible for Thailand or Vietnam to emulate.

 

(v)        Trade and Exports

With CPTPP, BRICs and other alliances, Malaysia could access Canada, Mexico and Japan. In addition, some Chinese export-oriented companies could be replaced by Malaysian ones who have better access to restricted markets. 

In all this, our major competition is Vietnam and Thailand. For us to become a winner from this US protectionism, it’s for us to leverage our strengths and ease-up on bureaucracy and policy inconsistencies. Other nations with key strengths include Canada, Mexico, Germany, UAE, Singapore, Australia/New Zealand and India.

Overworked & Underpaid?

“Being worked to the bone”. Such is the claim of a former 99 Speedmart employee who grumbled about having to work 12-hour shifts, six-day weeks and having to cover “two or three stores”. All this for RM60 more which is a pittance of a salary. (This was reported in Focus Malaysia on 22 April 2025). 

The founder of the convenience store chain and CEO of its publicly listed holding company 99 Speed Mart Retail Holdings Bhd, is the eighth richest person in Malaysia on the 2025 Forbes list with a net worth of US$3.5 bil (RM13.32 bil).

 

Source: https://ms.wikipedia.org

Notwithstanding this, the complainant is adamant that the secret lies in 99 Speedmart extracting its pound of flesh from each of its employees while paying them minimum wages. 

The complainant contended while he respects the founder – a polio survivor – for having started from the very bottom, the problem of staff shortage would not have existed if an equitable wage was paid given the number of outlets, 2,800 outlets with 23,000 staff. He would be willing to live up to the challenges of long hours and back-breaking labour (9am to 10.30pm for six days) as a branch manager if he was paid a monthly wage of at least RM3,500. The lack of off days was another grievance. One former staff claimed he had to work for months without a break. One claimed the working conditions were so poor that he threw in the towel by serving a 24-hour notice, thus leaving an outlet short-handed. Another grumbled about staff shortages which became very acute during public holidays. This necessitated finding replacement staff if employees wished to take leave.

In a response to the allegations made, 99 Speedmart replied “across West Malaysia, our current basic salary range for branch manager starts from RM2,800 to RM3,000 not including any additional allowances or incentives which may vary based on geographical location. Branch managers who demonstrate outstanding performance are entrusted to manage two outlets are also eligible for additional perks. However, they are typically assigned to oversee one outlet per day. While cashiers receive a gross income inclusive of overtime pay, that exceeds RM1,800 which is well above the national minimum wage.” And the company adheres to all labour laws and is committed to the welfare of its employees.

Suffice to say, ethical and equitable working conditions are still way off in some companies in Malaysia regardless of whether one is doing corporate or menial jobs. And the owner as a billionaire and polio victim could review his present policies and practices. 

References:

Ex-staff claims overworking & underpaying is secret behind 99 Speedmart’s meteoric success, Focus Malaysia, 22 April 2025 

Our rates are competitive: 99 Speedmart denies ex-staff claim over poor pay, long working hours, Yong Eng Kwang, Focus Malaysia, 24 April 2025

What Makes Changi Airport Perform?

Singapore Changi Airport is a global travel hub and one of the busiest in Asia. It has a solid reputation worldwide; it has earned the prestigious title of the World’s Best Airport by Skytrax 12 times. Why is it so successful? 

1.   Exceptional Passenger Experience

The foundation underpinning Singapore Changi Airport’s long-lasting success is its continued commitment to exceptional customer experience. Passengers can use world-class facilities perfect for leisure and business travellers. International celebrities, businesspeople, sports stars, and other frequent fliers use this airport and its many features to enter this financial and entertainment hub.

 

Source: https://en.wikipedia.org

 One of Singapore Changi Airport’s standout features is the ease of navigating through the airport, from security and passport control to the terminals and retail spaces. You’ll find easy-to-follow, intuitive signage, minimal waiting times at immigration, and efficient baggage handling. This makes it easy for passengers to relax and enjoy the experience. Changi also excels when it comes to customer service, with staff dotted throughout the airport to assist passengers. 

2.   Entertainment and Leisure Options

You’re not alone if you hate long layovers. However, at Singapore Changi Airport, this period suddenly becomes something to look forward to. Dining, shopping, and entertainment are integral to the airport experience. Whether looking for luxury goods or somewhere to spend a few hours, Changi has something for everyone. 

3.   Innovative Design and Facilities

Singapore Changi Airport is a technological and architectural marvel. The design and facilities offer much more than a place to wait for a flight. 

The Jewel Changi Airport first opened in 2019 and is the perfect example of how impactful this transformation has been. This doughnut-shaped complex is ten stories tall and a masterpiece that combines retail, dining, entertainment, and nature. At its heart is the world’s tallest indoor waterfall, the Rain Vortex, which towers at an impressive 40 meters in height. This part of the airport is also home to a hedge maze, a suspended bridge, and the Canopy Park.

Singapore Changi Airport effortlessly blends infrastructure with nature, creating an open and energizing space perfect for those leaving one flight and waiting for another. In addition to indoor gardens, the terminals have unique green spaces, such as the Butterfly Garden in Terminal 3. For those wanting to reconnect with nature and escape from the urban busyness of the city, this airport is a surprising refuge, as strange as that might appear at first glance. 

Changi Airport’s 12-time reign as Skytrax’s champion is no accident. It results from a carefully created environment that puts passenger comfort, entertainment, and efficiency ahead of all other factors. As air travel continues to evolve, the airport’s commitment to innovation and customer satisfaction ensures it will remain one of the world’s best airports. 

On the other hand, compared with other major hub airports in Southeast Asia, KLIA had the third-largest total international passenger traffic and the second-highest number of international hub traffic in the first nine months of 2023 (9M2023). Changi had the highest total number of both international passengers and international hub passengers than other airports in Southeast Asia. 

 

Both KLIA and Changi had relatively high proportions of international hub (transit) passengers, at 24% and 22% respectively. 

Malaysia also has lower direct connectivity to European aviation hubs than Singa­pore and Thailand. According to Mavcom, only 1.8% of Malaysia’s total international seat capacity is attributed to flights to European hubs, compared with 8.1% for Singapore and 9.5% for Thailand. 

A key transit hub that was once ranked second-best airport in the world in 2001, KLIA has been slipping down the Skytrax global airport rankings since 2013. In 2024, it fell another four spots to rank 71st, from 67th in 2023.  

Facilities at the airport, which was built in 1998, have been beset by problems including leaky ceilings and issues with the baggage-handling system. The aerotrain service linking KLIA’s satellite building with its main terminal broke down in March 2023, and has since been suspended, forcing passengers to use a less-convenient bus service. Long queues to clear immigration are also not uncommon. 

Under a RM12.3 billion (S$3.5 billion) deal that will be completed by end-2024 and will take the listed airport operator private, US-based investment fund Global Infrastructure Partners (GIP) and the United Arab Emirates’ biggest sovereign wealth fund, Abu Dhabi Investment Authority, will emerge with a combined 30 per cent stake in MAHB. These two foreign stakeholders are part of the Gateway Development Alliance (GDA) consortium that will acquire MAHB. The consortium also comprises two of MAHB’s existing local investors – sovereign wealth fund Khazanah Nasional and state pension fund Employees Provident Fund – that together will have an increased stake of 70 per cent in the airport operator after the exercise. 

So, will matters change with GDA? Hopefully, yes! Aero-trains may work, leaky roofs may be sorted, then there is immigration, signage, baggage system and a host of other issues. How did we get here? Because we switched on the sleep mode, not even the pause mode. Anyone could do something, but we can never match Changi! Why? Because we don’t challenge ourselves to improve daily, if not weekly! And that goes for MAS-the airline, currency fluctuations, schools, universities and a whole host of other areas which Singapore is well ahead.

 

References:

What makes Changi Airport the world’s best? Shaan Nicol, Best of Singapore, 13 Sept 2024

Cover Story: Keeping up with the competition, Kamarul Azhar, The Edge Malaysia, 30 May 2024

Long queues, leaky ceilings: Can new investors pilot Malaysia’s KLIA up the global airport rankings?, Zunaira Saieed, Straits Times, 15 July 2024

 

“Be Tender-Hearted”

In his best-selling book 7 Habits of Highly Effective People, author Stephen Covey describes an experience he had on a subway in New York. A man and his children boarded the train, and the children were so loud and rambunctious, they disrupted the entire car. The man sat down beside Covey, seemingly oblivious to the situation. Covey finally said, 'Sir, your children are really disturbing a lot of people. I wonder if you could control them a little more?' The man looked startled. Then he said, 'Oh, you're right. I guess I should do something about it. We just came from the hospital where their mother died about an hour ago. I don't know what to think, and I guess they don't know how to handle it either.' Covey's attitude instantly changed. Looking back on it later, he admitted that he learned a valuable lesson: seek to understand before seeking to be understood.

 

Source: https://www.freepik.com

 Sometimes the people who irritate and hurt us do so because they themselves are in pain. They're dealing with issues we don't know about. And when they lash out, it's just the burst dam of personal frustration. And it calls for looking beyond their words and actions and trying to see their hearts. There is this story of a mother and her son, and the son refused to get up to go to school. The mother told her son, “You have to get up son!” The son replied, “I don’t want to go!” “Why?” the mother asked. “The children don’t like me and the teaches criticise me! I don’t like school!” “But you must go” replied the mother, “because you are the principal!”

The Bible addresses this: 'Let all bitterness, wrath, anger, clamour and evil speaking be put away from you, with all malice. And be kind to one another, tender-hearted, forgiving one another, even as God in Christ forgave you' (Ephesians 4:31-32 NKJV). If you have been grumpy towards those you live with and work with, practise being tender-hearted. And you don’t have to be a Christian to do this! 

Reference:

Be tender hearted, Word for Today, Bob and Debby Gass, 20 February 2025

 

 

Global Trade at Record $33 trillion!

Global trade hit a record $33 trillion in 2024, expanding 3.7% ($1.2 trillion), according to the latest Global Trade Update by UN Trade and Development (UNCTAD), which warns that while trade remains strong, uncertainty looms in 2025. 

Services drove growth, rising 9% for the year and adding $700 billion – nearly 60% of the total growth. Trade in goods grew 2%, contributing $500 billion. Most regions saw growth, except for Europe and Central Asia. Growth varied by industry – agri-food, communication technology and transport saw gains, while energy, apparel and extractives slowed due to weaker demand and policy shifts. However, momentum slowed in the second half of the year. In the fourth quarter, trade in goods grew by less than 0.5%, and services edged up just 1%.

 

Trade inflation neared zero as prices for traded goods stabilized in the last quarter of 2024. The lingering effects of high post-pandemic inflation appear to have run their course.

 

 

In 2024, developing economies outpaced developed nations, with imports and exports rising 4% for the year and 2% in the fourth quarter, driven mainly by East and South Asia. South-South trade expanded 5% annually and 4% in the last quarter.

China and India outperformed global trade averages. In contrast, trade in the Russian Federation, South Africa, and Brazil remained sluggish. Meanwhile, developed economies’ trade stagnated, with imports and exports flat for the year and down 2% in the last quarter.

 

 

In 2024, global trade imbalances returned to 2022 levels. The US trade deficit with China reached -$355 billion, widening by $14 billion in the fourth quarter, while its deficit with the European Union (EU) increased by $12 billion to -$241 billion. Meanwhile, China’s strong exports pushed its trade surplus to the highest level since 2022. The EU reversed previous deficits and posted a trade surplus for the year.

 

Trade has remained stable in early 2025, but mounting geoeconomic tensions, protectionist policies and trade disputes signal likely disruptions ahead. Falling shipping indexes signal weaker demand for manufactured goods, inputs and commodities as businesses adjust to increasing uncertainty.

 

The challenge in 2025 is to prevent global fragmentation – where nations form isolated trade blocs – while managing policy shifts without undermining long-term growth.

 

Against the above backdrop, the US is “misbehaving” under Trump. Anyone with basics in international trade will tell you that it is the current account balance (of a nation) that matters.

The US has surplus with most nations including Malaysia on its services account. So, what’s this about? A “Trumpian” nightmare. This guy over the last 45 years has not understood trade – it is goods and services! Until he or his advisors get a hold of this, we are in for a Rough Ride (and that’s not a brand name for a cigarette!).

 

Reference:

Global trade hits record $33 trillion in 2024, driven by services and developing economies, UNCTAD,14 March 2025

 

SMEs and Tariffs!

Small and medium enterprises (SMEs) are bracing themselves for the full impact of the sweeping tariffs announced by the United States on April 2 over the coming months and are looking for ways to mitigate the risks. 

A tariff of 24% was imposed on Malaysia. But this may have a 90-day pause and key exemptions are made for semiconductors, wood products, copper and copper products, energy products and pharmaceuticals. According to Malaysia External Trade Development Corp data, electrical and electronics products comprise 54.6% of all exports to the United States.

 

SME Association of Malaysia estimated that the full impact of the tariffs would be felt in about three months. SMEs contribute an estimated 13% of Malaysia’s total exports. The SMEs that have felt an immediate impact include those in the furniture, food and beverage, information and communication technology industries and other businesses in the processed goods industries. 

Socio Economic Research Centre noted that SMEs could face significant disruptions as they rely on demand from larger export-oriented firms for orders and sub-contracts. Besides disrupting supply chains, lower demand resulting in reduced production capacity could lead to layoffs or even closures. 

SMEs importing goods would likely face indirect impact from second-order effects, given the interconnectivity of supply chains around the world and with retaliatory measures underway.

Overall, lower exports demand would result in lower production and would impact the employment and income of workers in the export-oriented industries and related supporting domestic SMEs along the supply chains, which will bear the bigger brunt of the impact. Grants, subsidies, tax breaks and emergency relief funds including low-interest loans and loans restructuring and rescheduling should be considered to support SMEs. 

The government should also help SMEs navigate the tariffs by providing guidance, while also working in tandem with business associations and chambers of commerce. Market diversification, source alternative suppliers and supply chain solutions are other steps. 

Reference:

SMEs seek opportunities post-tariff imposition, Fintan Ng, The Star, 9 April 2025

Stable Genius or the Boy Who Cried Wolf?

Nothing is certain under President Trump – inconsistent, fixed but flexible on tariffs. And it has a longer-term economic cost and consequences. Minutes after Trump unveiled a climbdown on tariffs, his press secretary scolded reporters at the White House for not understanding the “Art of the Deal”. The 90-day pause of tariffs on countries except China conjured up a different fable. 

Trump and his officials have long put forward a consistent, but contradictory, case for high tariffs. They want manufacturers to set up plants in the US while the US tax the world. They don’t understand a service sector economy like the US having surplus with many nations including Malaysia. The US economy is driven by services which forms 80% of its GDP.

 

Stock markets have tanked. US government bond markets endured a sharp sell-off. But he imposed the 10% tariff anyway, insisting that he would not be moved.

 

Source: https://en.wikipedia.org

 

Nothing is certain under this President. From longstanding geopolitical relationships to constitutional term limits, he has little time for established norms. Erratic policymaking is a feature, not a bug, of his administration. Trump has forged this uncertainty and uses it as a short-term political tool.

 

The US could sign a trade agreement and you have fair confidence that it meant that there’d be free trade, according to Joseph Stiglitz, a Nobel prize-winning economist and professor at Columbia University. With Trump, there is no longer that confidence. He has added a permanent level of uncertainty into all cross-border transactions and there is no sanctity of contracts.

 

Facing the threat of higher prices because of tariffs, some consumers have curbed their spending. Others make higher purchases now, earlier than planned, for fear of paying more next week, or month later.

 

How many global executives are prepared to commission a new factory and years of construction, in a market where the economic landscape shifts drastically from one week to the next? For now, at least, one thing firms can count on is spiralling tensions between the world’s two largest economies. After a dramatic escalation, the US is now charging a tariff of 145% on Chinese exports, and China is charging a tariff of 125% on US exports.

 

Amid this, what must Malaysia do? Well, the following:

 

(i)              Set-up a lab for private-public sector engagement on ideas to pursue.

(ii)            Focus on services surplus that the US has with Malaysia and let them know of this.

(iii)          Report/research on the extraordinary profits that US MNCs have made because we give them tax breaks of 10 years or more. This is the revenue foregone by Malaysians and is a subsidy to the US.

(iv)          Malaysia needs to form a Tariff Stabilisation Fund that will assist SMEs.

(v)            Appoint Jeffrey Sachs (or someone similar) to help negotiate a new trade/tariff arrangement; and

(vi)          Develop a revitalisation/renewal fund with China to upgrade existing factories or help move China’s “night” factories to Malaysia

 

I think we start with the above and perhaps the effects will be less daunting for us. Even then, growth will drop from about 5% in 2025 to 4% (or less) with the tariffs!

 

Reference:

Dealmaking genius or boy who cried wolf? Trump’s trade retreat sows doubts, Callum Jones, The Guardian, 12 April 2025

Trump Fumbles Like a Virgin!

The Tamils usually say it is “muthal ratri” (your first wedding night) but Trump already had three of them. And yet he fumbles like a virgin (and that’s not from Madonna!).

Unlike past major financial crises – like the Asian financial crisis, 9-11, the dotcom bubble, the global financial crisis of 2008, and the Covid-19 pandemic – which were either driven by greed or the financial indiscipline of governments, the current Trump tariff crisis is self-inflicted by one man’s agenda. To top it off, just one week after his “Liberation Day”, US President Donald Trump – who had always claimed that he held all the cards – basically folded and backed down.

Source: https://en.wikipedia.org

Nevertheless, as he has now lowered the baseline reciprocal tariffs (RT) to 10% for 90 days for all countries, the RT rate for China is now 145%, in a series of tit-for-tat moves.

President Trump and Elon Musk have both gone on record, following the Liberation Day announcement, that if countries drop their tariffs or cut the rate to zero on US goods, the United States is prepared to do the same. The issue boils down to the formula. For instance, in Malaysia’s case, the US Trade Representation (USTR) report showed that Malaysia’s average most-favoured-nation weighted tariff rate was at 5.6% in 2023. However, Malaysia was slapped with an RT of 24%, more than four times the rate reported by USTR.

Hence, what if Malaysia was kind enough to remove all tariffs on US exported to the country? Assuming zero tariff on US imports and Malaysia is running a trade surplus of let’s say US$18bil on US$50bil worth of exports to the United States, there would still be a 36% “tariff charged to the United States” and we would still be subjected to an 18% RT based on the formula that Trump laid out to the world.

Countries like Singapore and the United Kingdom, both running trade deficits with the United States, were still slapped with a 10% RT! Certainly, even if the rest of the world were to remove all tariff rates and we have zero tariffs across every nation, the United States would still be running a trade deficit.

One of Trump’s proposals is to have goods manufactured in factories across the world, particularly in places like China or Vietnam, relocate to the United States. This ignores the fact that the workers in these sweatshops work for just under US$300 per month in Vietnam and around US$600 per month in China. How would the United States be able to compete when its minimum wage is at least five to 10 times higher than in China and Vietnam? It is just not feasible.

In addition, even if these factories relocate to the United States, they will still need to import raw materials, which would now be subject to the RT. Other than wages, there are a host of other issues related to reshoring to the United States, including finding suitable location, overhead costs, supply chain issues and time constraints. The US consumers are key beneficiaries of the global supply chain, as well as the idea that countries that have the best comparative advantage should produce goods like shoes or gadgets.

In 2024, the United States was China’s largest merchandise export destination and the second-largest source of imports. China’s exports to the United States and imports from that country accounted for 14.7% and 6.3% of China’s total exports of US$3.58 trillion and imports of US$2.58 trillion in 2024, respectively. On the other hand, US exports to China and imports from China accounted for 7% and 13.8% of the total US exports and imports, respectively. The United States is more dependent on China than China is on the United States.

With Trump in power and the tariff issue remaining fluid, most countries will likely take steps to de-risk from overdependence on the United States for trade and seek alternative sources. This could likely see lesser usage of the dollar in international trade.

The recent spike in the 10-year US Treasury yield shows that both Japan and China do have the cards to play with the United States if it continues with unilateral actions in international trade.

If Japan and China exit the US Treasury market, not only would it cause chaos, but the dollar too will suffer as the proceeds would quickly be converted to other currencies. Thus, the dollar’s dominance will erode as nations reduce their dependence on the world’s reserve currency.

Tariffs are essentially taxes on consumers, paid by importers. The notion that America is “charging” 180 nations with RT is not only wrongly communicated but is less understood. These are not a tax on exporters but on importers, who will then pass it onto consumers. American exporters, too, will suffer as input costs are expected to increase, resulting in the United States losing its competitiveness, or whatever that is left of it.

Even before taking office, Trump has been barking on tariffs as a means to raise revenue and replace taxes. Tariffs won’t solve US trade deficit problems, as it does not have the comparative advantage to become the global manufacturing hub. China is likely to emerge stronger from hereon as the true superpower, especially when it comes to economic strength and diversity. China will emerge as the real winner in Trump’s self-inflicted trade war.

What China could do and should do is to forge a trade alliance with India, ASEAN and Europe. But that takes a lot of courage and wisdom by all parties. In any event, the U.S. is left isolated with its tantrums!

Reference:

Trump fumbles self-made crisis, Pankaj C. Kumar, The Star, 12 April 2025

The Infinite Game!

What game are you playing? Where is your focus? What is your mindset? 

Are you playing to win or playing to keep playing? This is the question that Simon Sinek poses in his insightful book, The Infinite Game. Drawing on the concept of finite and infinite games, Sinek’s The Infinite Game challenges us to rethink life, work, and leadership by distinguishing finite and infinite games. Finite games are about winning and losing, while infinite games are about keeping playing and advancing a just cause.

 

Source: https://www.aiming.wiki/en/growth-mindset

Sinek provides examples of finite and infinite minded leaders, organizations, and movements, and shows how their mindsets affect their actions, outcomes, and impacts. He identifies five essential practices for adopting an infinite mindset: advancing a just cause, building trusting teams, studying worthy rivals, preparing for existential flexibility, and demonstrating the courage to lead. 

These practices can help us overcome the challenges of leading with a finite mindset, such as ethical fading, cause blindness, and cheating. He also shows how these practices can help us create a culture of trust, innovation, and resilience, and how they can contribute to advancing a just cause that transcends our own interests. The Infinite Game offers a new and refreshing perspective on how to live and lead in the 21st century. It inspires us to embrace the infinite game and lead with courage, because that is the only way to create a lasting impact and legacy.

The book starts with a simple but profound distinction between finite and infinite games, first introduced by James P. Carse, a philosopher and religious scholar. Finite games, like chess or football, have clear rules, known players, and a defined endpoint. The goal is to win, and there can only be one winner. Infinite games, on the other hand, are ongoing, ever-evolving endeavours. Accordingly, they have no set rules, no defined end, and no clear-cut winners or losers. Examples of infinite games include business, politics, and social movements. 

Sinek argues that most of us are playing by the rules of a finite game, without realizing that we are in an infinite game. Many individuals are obsessed with winning, competing, and achieving short-term goals, such as market share, quarterly earnings, or popularity. We are driven by ego, fear, and greed, rather than by purpose, passion, and generosity, and we are focused on the outcome, rather than on the process. We are playing to win, rather than playing to keep playing. 

This finite mindset, Sinek says, leads to many problems and challenges, both for individuals and organizations. It creates a culture of distrust, anxiety, and stagnation, where people are afraid to take risks, share ideas, or admit mistakes. this mindset also creates a culture of ethical fading, where people gradually lose their sense of morality and integrity, due to flawed incentives, self-deception, and euphemisms. It also creates a culture of cause blindness, where people become so attached to their own cause that they dismiss or ignore other causes, even if they are wrong or harmful. 

To overcome these challenges and pitfalls, Sinek says, we need to adopt an infinite mindset. Several key attributes characterize an infinite mindset: 

A Just Cause

A clear and inspiring vision for the future that motivates and unites people. 

Trusting Teams

Groups of people who feel safe to express their feelings, admit their mistakes, and ask for help. 

Worthy Rivals

Respectful competitors who help you push your boundaries and improve your game. 

Existential Flexibility

The ability to adapt and evolve in the face of change and uncertainty. 

The Courage to Lead

The willingness to adopt an infinite mindset and face the uncertainty, risk, and criticism that comes with it.  

Sinek shows that the infinite mindset is not only relevant and applicable to business leaders and managers, but also to anyone who wants to improve themselves and make a positive difference in the world. By cultivating an infinite mindset, individuals can:

 

·       Identify their own Just Cause: A compelling purpose that drives their actions and decisions.

·    Find and engage with worthy rivals: Individuals who challenge and inspire them to reach their full potential.

·  -Embrace lifelong learning: Continuously seek out new knowledge and experiences to expand their horizons.

 

Reference:

The Infinite Game by Simon Sinek: A Book Review That Will Change Your Perspective on Life and Leadership, JD Villa, 3 December 2023