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Independent Singapore
08-08-2025
- Independent Singapore
Despite US tariff hike, Johor-Singapore economic zone remains strong magnet for high-value investments
JOHOR BAHRU: Even as the United States imposes a revised 19% tariff rate on Malaysian goods, Johor remains confident that the Johor-Singapore Special Economic Zone (JS-SEZ) will continue attracting high-value foreign direct investment, particularly in sectors strategically aligned with Singapore's own economic strengths. According to Lee Ting Han, chairman of Johor's Investment, Trade, Consumer Affairs and Human Resources Committee, the updated tariff regime puts Malaysia on par with its regional peers. 'Generally, the 19% revised tariff rate is not that bad for our country, as most neighbouring countries have similar tariff rates, with some even higher than ours. The JS-SEZ is still in a good position to get more investors, especially foreign direct investments,' he told The Star . While some industries, including furniture and rubber, may face short-term challenges due to increased costs in the US market, Johor's state leadership is focused on sectors that remain unaffected by the new tariffs. Singapore-Johor synergy in high-growth sectors Lee emphasised that semiconductors, electrical and electronic goods, and data centres, all exempt from the US tariff hike, continue to grow rapidly in Johor. These sectors are not only resilient but also well-aligned with Singapore's advanced technology ecosystem, creating a natural synergy across the Causeway. 'The other good news for the JS-SEZ is that Singapore has a much lower US tariff rate for its sectors, such as pharmaceutical products. We are looking at how we can complement each other and drive the JS-SEZ as the region's engine of growth,' said Lee, as reported by The Star . This cross-border complementarity is especially important for Singaporean investors looking to expand regionally, tap into lower operating costs, and gain access to Malaysia's growing high-tech manufacturing base without compromising on supply chain efficiency. Experts suggest smart policy cushioning To strengthen investor confidence amid global trade uncertainty, experts are calling for targeted tax incentives. According to Associate Professor Dr L. Nanthakumar from Universiti Teknologi Malaysia's Faculty of Management, the government should act swiftly to mitigate potential downsides. 'What the government can do is to help investors within the JS-SEZ by introducing tax incentives to help them cushion the impact of the new tariff rate. A tax incentive can help lower our production cost to the American market while maintaining its quality and make it more affordable to consumers there,' he told The Star . 'This will help ensure that our products are still in demand.' For Singaporean companies, particularly in tech, data infrastructure, logistics, and high-value manufacturing, this is a signal that Malaysia is actively working to keep the JS-SEZ attractive, not just in terms of location and cost, but in policy responsiveness and regional integration. A resilient platform for cross-border growth While the US tariff development introduces new complexity for some export-facing industries, it has not dampened Johor's forward-looking outlook. This sustained federal and state collaboration, and a shared vision with Singapore, the JS-SEZ continues to be seen as a key pillar of economic transformation on both sides of the border. The zone's attractiveness to investors is influenced by both its proximity to Singapore and its infrastructure, government support, and strategic sectoral focus. Singaporean firms with regional ambitions may find this a timely opportunity to improve their influence in Johor while navigating an evolving trade landscape. For now, as The Star reports, Johor is keeping its eye on the long game, with the JS-SEZ positioned to weather global shifts and deliver returns through resilience, collaboration, and economic foresight. Read also: Johor rep calls for regulated cross-border ride-hailing framework amid LTA crackdown
CNA
07-08-2025
- CNA
Thai consumer confidence hits lowest level in over two years
BANGKOK :Thai consumer confidence dropped for a sixth consecutive month in July to its lowest level in 31 months due mainly to concerns over U.S. tariffs, a lagging economy and government instability, a survey showed on Thursday. The consumer index of the University of the Thai Chamber of Commerce fell to 51.7 in July from 52.7 in the previous month. The sluggish economy and the trade war, as well as high living costs, continue to undermine confidence, the university said. "The confidence index shows no signs of recovery, with consumer purchasing power still subdued," university president Thanavath Phonvichai told a press conference. "The economy shows signs of stagnation and needs more stimulation," he said, adding that the economy might grow by only 1.7 per cent this year, after last year's 2.5 per cent expansion. While the United States has reduced its tariff on imported goods from Thailand to 19 per cent from 36 per cent, there are still uncertainties relating to U.S. tariffs on transshipments via Thailand from third countries, Thanavath said. "What needs to be clearly defined is tariffs on transshipments. They must be explicitly outlined for businesses to adapt accordingly," he said. Consumers were also worried about the instability of the government following the suspension of Prime Minister Paetongtarn Shinawatra from duty pending a case seeking her dismissal, Thanavath said.
CNA
28-07-2025
- CNA
Political analyst Edmund Tayao on Philippine President Marcos' state of nation address
At his fourth state of the nation address, Philippine President Ferdinand Marcos Junior unveiled new promises for the second half of his six-year term. Acknowledging a poor showing in recent mid-term elections, Mr Marcos said he intends to address inadequacies in every aspect of governance. He has promised more jobs and housing, wider healthcare coverage, support for students and farmers, as well as improvements to energy and water systems. Mr Edmund Tayao, CEO of Political Economic Elemental Researchers and Strategists (PEERS), discussed more about the details of Mr Marcos' speech.
