Johor trade chairman Lee Ting Han says Trump tariffs could be an ‘advantage’ for JS-SEZ but ‘it is still too early to tell’

JOHOR BAHRU: The United States’ 10 per cent tariff on China and 25 per cent tariffs on Canada and Mexico have raised concerns about global trade. While the Canada and Mexico tariffs have been pulled back for a month, according to The Guardian, the outlook remains uncertain.

Lee Ting Han, chairman of Johor’s investment, trade, consumer affairs, and human resources committee, said that while the tariffs could impact the global supply chain, it will not immediately impact the Johor-Singapore Special Economic Zone (JS-SEZ).

He described the SEZ, which provides access to a market of almost 700 million people, as a “window of opportunity for foreign investors to get into the Asean region”, reported The Star.

On Saturday, US President Donald Trump imposed a 25 per cent tariff on imports from Mexico and Canada and a 10 per cent tariff on goods from China. Analysts warned this could lead to a trade war and create global economic uncertainty, given the size of the US and Chinese economies.

However, the SEZ continues to draw investments from Western companies, including those from the US, said Mr Lee.

He pointed out that Microsoft recently bought several plots of land from two developers in Johor to expand its data centres.

Both Western and Asian tech firms are setting up data centres in the area, he added.

Forbes reported that Microsoft Payments Malaysia, the company’s data centre arm, purchased a plot in Nusa Cemerlang Industrial Park for RM119.8 million (S$36.93 million). This marks Microsoft’s fourth land acquisition in Johor, which has become a key data centre hub.

Mr Lee added that the US tariffs could give Malaysia, particularly the JS-SEZ, an “advantage”, but “it is still too early to tell” the full impact as the list of affected products is still unclear.

He said the Johor government is monitoring the situation closely and remains focused on attracting foreign investment through the JS-SEZ. The goal, he said, “remains—to attract high-quality investments that will generate thousands of high-income jobs for locals”. /TISG

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