Johor exco: State hopeful of positive outcome from federal govt-US trade talks
The state Investment, Trade, Consumer Affairs and Human Resources Committee chairman said a positive outcome was crucial for Johor.
'Johor is directly impacted by the coming trade tariffs as we are among the biggest export contributors in petrochemicals, semiconductors, electrical and electronic goods, and furniture to the US.
'At present, it's a wait-and-see situation for us before the deadline next month.
'We hope that the Ministry of Investment, Trade and Industry (Miti) can deliver some good news after their negotiations with their US counterparts,' he told reporters on the sidelines of the Associated Chinese Chambers of Commerce and Industry of Malaysia's (ACCCIM) 79th annual general meeting at the Thistle Hotel here today.
Miti is currently in talks with US trade representatives to address unresolved issues, clarify the scope and impact of the announced tariffs, and work towards concluding the negotiations.
The US is expected to impose a 25 per cent reciprocal tariff on Malaysian exports, set to take effect on August 1.
Lee said the state government would refrain from making further comments until after the tariffs are implemented.
'It's still early for the state government to comment further on this issue.
'Depending on the outcome of the negotiations, we will address the tariff's impact with the various industries in the state,' he said.
On the issue of inflation in Johor, Lee said it was being addressed as a preventive measure led by the menteri besar.
He said Datuk Onn Hafiz Ghazi had taken public concerns seriously and was proactive in tackling the matter.
'For Onn Hafiz, prevention is better than cure. He also doesn't want to see inflation becoming a major issue once the Johor Baru–Singapore Rapid Transit System Link (RTS Link) and the Johor–Singapore Special Economic Zone (JS-SEZ) are completed.
'With that, the menteri besar has also tasked the state government with developing strategies to curb the rising cost of living,' he said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
an hour ago
- The Sun
Paragon Globe eyes strong growth from industrial, residential segments
PETALING JAYA: Johor-based property developer Paragon Globe Bhd is positioning itself for sustained growth in the industrial and residential sectors, supported by strategic projects and the state's buoyant economic prospects, following a record-breaking financial performance in its recently concluded financial year. For the financial year ended March 31, 2025, Paragon Globe achieved a net profit of RM105.6 million, reversing the previous year's net loss of RM1.2 million. Revenue surged to RM306.3 million from RM51 million the year before, primarily driven by strategic land disposals and robust industrial property sales. Paragon Globe executive chairman Datuk Seri Edwin Tan Pei Seng said the strong performance was largely attributable to a RM337.3 million disposal of 67.6 acres of industrial land at Desa Cemerlang to Bridge Data Centres. 'Apart from strategic land sales, we experienced high demand for industrial developments at Pekan Nenas, significantly contributing to our earnings,' he added. 'Looking ahead, our growth will be underpinned by residential launches such as Calia Residences and The Iconic at Stulang Laut, along with continued industrial projects.' Paragon Globe recently opened its flagship RM10 million PGB Experience Gallery in Johor Bahru, aimed at enhancing customer engagement and centralising sales activities across its diverse project portfolio. Tan highlighted the strategic advantage of Paragon Globe's industrial projects – Desa 27 and Desa 100 – which are ideally located to leverage the Johor-Singapore Special Economic Zone (JS-SEZ). These projects have attracted prominent multinational tenants, including Hunter Amenities International and Meiban Technologies. Despite global economic uncertainties, Tan expressed optimism about Johor's property sector, buoyed by initiatives such as the JS-SEZ and the Johor-Singapore Rapid Transit System Link. 'PGB remains committed to resilience, diversification, and sustainability, positioning ourselves to adapt swiftly and effectively to market changes,' Tan said. On shareholder returns, he said the company was actively reviewing its capital allocation strategy, including the possible introduction of a structured dividend policy, balancing prudent reinvestments with shareholder rewards. 'Despite global economic uncertainties, we remain optimistic about Johor's property market outlook, driven by sustained regional growth initiatives. PGB remains committed to resilience, diversification, and sustainability, positioning ourselves to adapt swiftly and effectively to market changes,' concluded Tan.
Free Malaysia Today
3 hours ago
- Free Malaysia Today
Govt looks into US request to ease foreign ownership limits
Tengku Zafrul Aziz said trade officials were working to meet the new US tariff deadline of Aug 1, 'but not at the expense of agreeing to every request'. PETALING JAYA : The government is to consult industry leaders over a US request to relax the limits on foreign ownership of companies in some sectors, says investment, trade and industry minister Tengku Zafrul Aziz. Tengku Zafrul said the US had asked Malaysia to consider liberalising the foreign shareholding restrictions in force on some sectors. Many other nations have also received the same request from the US, he said. The minister said the government would need to consult industry leaders in strategic sectors to determine whether these sectors were ready for the caps on foreign equity to be lifted. 'We need to carefully study its potential impact,' he said. Tengku Zafrul pointed out that some sectors did not have such restrictions, while the manufacturing industry was 'nearly all open'. However, foreign equity limits are still being imposed on strategic sectors, he said. 'As you know, Malaysia has equity restrictions for foreign shareholders in certain sectors. There's a request for us to relook or liberalise those sectors. We need to consult those industries, on whether we are ready to relax those equity shareholding restrictions,' he said. However, not all the US requests would be accepted, he said. 'Some of the requests, we feel, may not be fair to Malaysia.' He said trade officials were working to meet US president Donald Trump's new tariff deadline of Aug 1, 'but not at the expense of agreeing to every request'. The Trump administration has said a 25% tariff would be imposed should talks on a trade deal fail. Flexibility on tariffs Tengku Zafrul said there might be room for flexibility on a sector-by-sector basis. 'There will be opportunities for us to negotiate tariffs below 10% for certain sectors. But at the same time, we cannot depend solely on this trade negotiation.' He pointed to the current status of key sectors such as semiconductors and pharmaceuticals, on which no tariffs are imposed. 'For example, pharmaceuticals are in a better position. Right now, tariffs for both the semiconductor and pharmaceutical sectors are at zero. Naturally, we want to maintain that 0% tariff, but whether we can secure it is another matter.' On the potential impact of tariff changes on the Johor-Singapore special economic zone, Tengku Zafrul said investors were holding off until there was greater clarity. 'There seems to be a wait-and-see attitude. Investors are watching how the tariff scenario plays out before recalculating their positions. That calculation can only happen once there's certainty.' Another discussion would be held this week, with talks to be accelerated until the end of the month, he said.
The Star
4 hours ago
- The Star
Miti requires permit for US-made AI chip exports
KUALA LUMPUR: The Investment, Trade and Industry Ministry (Miti) has imposed an immediate requirement for a Strategic Trade Permit on all exports, transshipments and transits of high-performance artificial intelligence (AI) chips of US origin, as part of efforts to close regulatory gaps. Miti said the new measure falls under Section 12 of the Strategic Trade Act 2010 (STA 2010), known as the Catch-All Control provision. It mandates individuals or firm to notify the authorities at least 30 days in advance if they intend to export, transship, or transit any item not listed in the Strategic Items List (SIL), where there is knowledge or reasonable suspicion that the item may be misused or involved in restricted activities. 'This initiative serves to close regulatory gaps while Malaysia undertakes further review on the inclusion of high-performance AI chips of US origin into the SIL of the STA 2010,' Miti said in a statement yesterday. Miti said Malaysia takes a firm stance against any attempt to circumvent export controls or engage in illicit trade. Any individual or company found violating the STA 2010 or related laws will face strict legal action. 'While Malaysia supports investments and trade that align with international best practices and multilaterally agreed commitments, all entities operating in the country are expected to comply with applicable international obligations to avoid secondary sanctions on their businesses,' it said. Miti reaffirmed its commitment to maintaining a safe, secure, transparent and rules-based trading environment, and said it will not tolerate misuse of Malaysia's jurisdiction for illicit trade activities. Commenting on the development, SPI Asset Management managing director Stephen Innes said the new export control does not directly hinder Malaysia's ongoing AI and data centre expansion efforts, which are driven by infrastructure investment, cloud partnerships and local talent. However, it does signal tighter regulatory oversight. 'If you want to play in the AI sandbox, you now need to watch your sourcing, disclosure and compliance trail more carefully,' he told Bernama. Innes said while multinational technology firms are likely to view this as a manageable hurdle, smaller local players or startups could face some challenges without the benefit of robust legal support. On the chip industry itself, he said Malaysia's core strength in testing and packaging means it may be spared the brunt of disruptions. 'This law forces the industry to mature quickly in terms of compliance infrastructure. The upside is that it may accelerate Malaysia's push toward more transparent, globally integrated standards,' he added. Meanwhile, economist Professor Geoffrey Williams said the changes in regulations showed a more cooperative approach from the tariff talks, which is a good sign. Williams said this indicated that both sides are listening to each other and responding quickly. 'This will deliver a much better chance of lowering the 25% reciprocal tariffs and is better than taking a belligerent stance. It is a closer win-win engagement,' he said. Williams said the United States has been concerned that AI chips are being sent to China through third countries in Asean, in breach of the US embargo. 'Therefore, getting better coordinated regulation across Asean is a positive response to address US concerns, and Malaysia is playing a key role in this,' he said, adding that this would have no significant effect on data centre and AI operations in Malaysia, except to restrict illicit activities.
