JOHOR BARU: Malaysia should leverage its strong diplomatic ties with the United States to address the reciprocal tariffs while expanding trade to other regions, says a business group.
Johor Bumiputera Chambers of Entrepreneurs and Traders vice-president Datuk Abd Latif Bandi said the new US tariffs could have implications on Malaysia’s exports, especially the development of the Johor-Singapore Special Economic Zone (JS-SEZ).
“There will be some impact on Johor, but I don’t think Singapore will feel it as much.
“Their goods face a 10% tariff, while Malaysia is looking at 24%.
“However, we are on good terms with the United States, and we should use diplomacy to open up discussions and explore resolutions,” he said when contacted.
Abd Latif said Malaysia should also take full advantage of its current Asean chairmanship to strengthen economic cooperation within the region.
“As a free trade country, we must not limit ourselves.
“There is vast potential to expand into the Middle East and North Africa and deepen our engagement with East Asia,” he added.
Johor Indian Chamber of Commerce and Industry vice-president Segar Rajoo echoed the call to diversify trade partnerships and sources.
“We must look beyond the United States and explore opportunities in the Middle East, Africa and India – all of which have large and growing consumer bases.
“A diversified trade portfolio will enhance our economic resilience and support long-term, sustainable growth despite global uncertainties,” he said.
He cautioned that while it is still too early to fully gauge the impact of the tariffs, Malaysian exports to the United States may face a decline.
“With higher tariffs, our products may lose competitiveness in the American market, reducing consumer demand.
“We must take precautionary steps to protect our industries,” he said.
Segar added that the JS-SEZ should actively identify new trading partners and broaden its export market base.
“We must place greater emphasis on Asean markets, where intra-regional trade is already strong.
“Expanding trade agreements and organising more trade missions within Asean would boost collaboration and market access for JS-SEZ businesses,” he said.
Johor Associated Chinese Chambers of Commerce and Industry president Datuk Jeffrey Lai said the US tariff decision may cause some Chinese investors to reconsider or delay plans to invest in the JS-SEZ.
“In the short term, Chinese investors who had been eyeing Malaysia may adopt a wait-and-see approach.
“They are likely to observe how the US tariff policy evolves, especially since China has also responded with its tariffs.
“In such a climate, the cautious route is the best route,” he said.
However, Lai expressed confidence in the state leadership under Mentri Besar Datuk Onn Hafiz Ghazi and believes local authorities will work hard to maintain investor confidence.
“Even if we can’t control the global economic outlook, our state government can adapt to national strategies and ensure the JS-SEZ remains attractive to foreign investors,” he said.
