JOHOR BARU: Johor is watching the negotiations between Putrajaya and Washington closely before the 25% reciprocal tariffs imposed by the United States on Malaysia take effect on Aug 1.
State investment, trade, consumer affairs and human resources committee chairman Lee Ting Han said it was too early to say if the new tariff rate would have an impact on the Johor-Singapore Special Economic Zone (JS-SEZ).
“Initially, the Federal Government projected that Malaysia would get a good deal, but the United States decided to increase the tariff.
“So now, we have been told that the Investment, Trade and Industry Ministry is negotiating with its American counterparts,” he added.
Lee, who is also the Paloh assemblyman, was speaking on the sidelines of the Associated Chinese Chambers of Commerce and Industry of Malaysia’s (ACCCIM) 79th annual general meeting at a hotel here on Sunday (July 13).
He added that the state government hoped the talks between Malaysia and the United States would yield some good news.
“Johor is among the biggest exporters of petrochemicals, semiconductors, electrical and electronic goods, and furniture to the world, including to the United States, but we are still uncertain about the impact of the new tariff rate,” he said.
On Monday (July 7), the United States announced it would impose a higher 25% tariff on all Malaysian products exported to the United States effective Aug 1, an increase from the 24% announced in April.
International Trade and Industry Minister Tengku Datuk Zafrul Abdul Aziz said Malaysia is optimistic that further negotiations will bring a positive outcome.
He said the Aug 1 deadline provides Malaysia several weeks to negotiate for a “win-win” trade deal for both countries.
“Of course, we will continue the engagement.
“If we are not optimistic, why should we continue the engagement?
“The important thing is that the US still wants to negotiate,” he added.
