JS-SEZ Still Strong Despite Uncertainty Over US Tariffs

JOHOR BARU: The Johor-Singapore Special Economic Zone (JS-SEZ) remains in a strong position to attract foreign investment despite global economic uncertainties sparked by the United States’ recent tariff imposition, says Lee Ting Han.

The Johor investment, trade, consumer affairs, and human resources committee chairman said this is because the JS-SEZ serves as a gateway for foreign investors to tap into the ASEAN market.

There is uncertainty following the United States’ move to impose high tariffs on goods from Canada, Mexico, and China. In my personal view, this could impact the global supply chain.

However, it will not immediately impact the JS-SEZ as the zone is a window of opportunity for foreign investors to enter the ASEAN region, which has a population of almost 700 million,” he said yesterday.

On Saturday, US President Donald Trump imposed 25% tariffs on imports from Mexico and Canada, and 10% on Chinese goods.

Analysts warn that this move could trigger a trade war and cause global economic uncertainty, as the US and China are the world’s two largest economies.

Continued Foreign Investments in JS-SEZ

Despite these concerns, JS-SEZ continues to attract foreign investments, including from the United States.

Microsoft recently acquired multiple plots of land in Johor to expand its data centers, reinforcing the state’s role as a tech hub

According to Forbes, the plot in Nusa Cemerlang Industrial Park was purchased by Microsoft Payments Malaysia for RM119.8 million.

This is Microsoft’s fourth land acquisition in Johor, solidifying the region’s reputation as a data center hub.

Potential Benefits for Malaysia

Lee suggested that could in US tariffsdirectly benefit Malaysia, especially JS-SEZ, but further analysis is required to determine the impact on specific goods.

Johor Government’s Commitment

The state government is closely monitoring the situation to anticipate potential developments.

Johor remains committed to attracting high-quality investments that will generate high-income jobs for locals.