Latest news with #TheEdgeMalaysia
Business Times
29-04-2025
- Business
- Business Times
Malaysia to delay new taxes as manufacturers fear tariff hit
[KUALA LUMPUR] Malaysia is delaying a planned expansion of its sales and service tax, providing a temporary reprieve for manufacturers bracing for higher US tariffs. The planned widening of the tax base, originally due on May 1, will be implemented at a later date, a spokesperson from the Ministry of Finance said in a text message, confirming a report by The Edge Malaysia. Malaysian manufacturers have been urging the government to refrain from introducing additional tax burdens this year after the US threatened a 24 per cent tariff on the South-east Asian country. The sector, a major contributor to the nation's tax revenue, is under severe cost pressure, Soh Thian Lai, president of the Federation of Malaysian Manufacturers, said earlier this month. Officials are seeking to negotiate a deal with Washington within the 90-day pause on the higher tariffs mandated by US President Donald Trump, who has in the meantime imposed a 10 per cent levy on goods from Malaysia and many other trading partners. The government is currently reviewing its official growth projection of 4.5 to 5.5 per cent for 2025, with the US levies causing uncertainty for investment and trade. The finance ministry's engagements with industries across the country to finalise the scope of the expansion and the applicable tax rates have been completed, the spokesperson said. The guidelines and scope are being refined to ensure smooth implementation, they said. The tax changes will be gazetted on Jun 1, Anis Rizana Mohd Zainudin, director general of the Royal Malaysian Customs Department, responsible for the execution and enforcement of the sales and service tax, was quoted as saying by The Edge Malaysia. It was originally scheduled for the first quarter. Prime Minister Anwar Ibrahim said in October, when he unveiled the nation's budget, that the sales and service tax will apply to non-essential items, including premium imported goods such as salmon and avocado. It will also be widened to cover commercial services. BLOOMBERG
Independent Singapore
26-04-2025
- Business
- Independent Singapore
JS-SEZ draws nearly 90% of Johor's Q1 investments; Trade and Investment Minister Zafrul says zone is key to ASEAN supply chain security
MALAYSIA: The Johor-Singapore Special Economic Zone (JS-SEZ) is rapidly positioning itself as a regional economic powerhouse, having drawn close to 90% of Johor's RM27.4 billion (S$8.23 billion) in new investments in the first quarter of 2025, according to Malaysia's Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Abdul Aziz. Speaking at the JS-SEZ Joint Business and Investment Forum, the minister said the zone is emerging as a strategic model for cross-border collaboration and economic resilience in Southeast Asia. A magnet for regional investment According to The Edge Malaysia, JS-SEZ's strong performance in Q1 demonstrates growing investor confidence in its potential. The zone, a joint initiative between Malaysia and Singapore, is designed to leverage the complementary strengths of both nations and has already become the primary destination for new capital inflows into Johor. 'Johor, Malaysia, and Singapore have complementary strengths, and this is what the JS-SEZ is all about,' Zafrul said. 'If you look at the geographical area, it is a very compelling argument that no other area can represent these unique qualities and resources, combined with the logistics and access to a global financial centre.' Targeting strategic sectors and supply chain resilience Zafrul emphasised that the JS-SEZ must now focus on drawing 'the right kind of investment that could diversify the supply chain and, in turn, help build the nation's supply chain resiliency and security.' With global trade still impacted by tariffs and geopolitical uncertainty, he called on ASEAN and partner countries to collaborate in strengthening regional economic networks. 'Amid all this discussion, we should refocus on issues or areas where we can cooperate to mitigate those impacts, and we would like to invite investors from the rest of the ASEAN and ASEAN partner countries to also join us at the JS-SEZ,' he said, as reported by The Edge Malaysia. Blueprint for ASEAN-level economic cooperation Signed on Jan 6, 2024, by the leaders of Malaysia and Singapore, the JS-SEZ agreement is intended to serve as a platform to jointly attract global investments and support Singaporean companies looking to expand into the Malaysian side of the zone. Under the agreement, both countries committed to promoting investment in 11 key sectors, including digital economy, manufacturing, logistics, and green technology. Nine flagship zones have been determined within the JS-SEZ, spanning Johor Bahru City Centre, Iskandar Puteri, Tanjung Pelepas-Tanjung Bin, Pasir Gudang, Senai-Skudai, Sedenak, Forest City, Desaru, and the Pengerang Integrated Petroleum Complex. Public sentiment reflects optimism and support Public response to the JS-SEZ's momentum has been overwhelmingly positive on social media, with many Malaysians expressing pride and encouragement. Comments such as 'Congratulations on the great work for Malaysia!' and 'Continue the good relationship between S'pore and M'sia!' reflect widespread support for the cross-border initiative. Others praised the leadership behind the efforts, with remarks like 'Team TZA is the best!' celebrating Minister Tengku Zafrul's role in driving the zone's development. A cross-border partnership amid global uncertainty The two-day JS-SEZ forum, themed 'JS-SEZ: Bridging Economies, Strengthening Supply Chains', was jointly organised by Malaysia's Ministry of Investment, Trade and Industry, Singapore's Ministry of Trade and Industry, and the Johor state government. Zafrul highlighted the strategic value of this binational initiative, stating to The Edge Malaysia, 'With the current tariff issues affecting the global economy, the JS-SEZ is a compelling joint proposition by Malaysia and Singapore to elevate and strengthen the ASEAN supply chain.' As global supply chains seek stability and diversification, the JS-SEZ stands out as a forward-looking model for ASEAN cooperation, one rooted in shared prosperity, resilience, and strategic connectivity. Read also: RTS seen as 'game changer' for Johor-Singapore ties, cautious optimism encouraged
