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6 MMC PORTS’ NEWSLETTER

Making Waves:
Navigating The Latest Logistic Trends

Navigating Uncertain Tides

Malaysia’s latest imposed export tariff rate of 19% by U.S. President Donald Trump puts it on equal
footing with other ASEAN countries, enabling the nation to remain competitive in that market. However,
even for ports that are not reliant on U.S.-based traffic, these evolving tariffs and uncertain policies
could play a larger role in indirectly influencing transhipment volumes in the region. In line with this,
most ports have remained attentive and responsive throughout the year in dealing with these emerging
developments.

PENANG PORT JOHOR PORT

The uncertain tariffs and trade policies enacted by U.S. Through Johor Port, furniture, biomedical products and Electrical
President Donald Trump have significantly affected global & Electronics (E&E) goods are the three core products that get
port strategies and outlooks, resulting in shifts within supply exported to the U.S., with all exports to the U.S. making up about
chains and heightened volatility. As a result, Penang Port and 14% of the Port’s total container throughput. The export of E&E
its key stakeholders are presently adopting a cautious, wait- goods, including semiconductors, is not expected to be affected
and-see approach as the U.S. tariff situation unfolds. As a key as tariffs are exempt on these goods. However, the furniture
component of MMC Ports, Penang Port is proactively engaging segment, especially with 70% of Johor’s total furniture exports
in discussions with all associated partner ports to mitigate these destined for the U.S., will face mounting challenges in securing
risks. new contracts. As a result, exports of furniture are speculated
to decrease in the coming months. Additionally, 25% of Johor
PTP
Port’s volume involves trade with China, mainly in terms of raw
materials and semi-finished products. Due to this, the U.S.’s
While PTP is not directly reliant on U.S.-bound traffic, any higher tariff rates on China’s exports may also affect Johor Port’s
tightening of U.S. trade policies or tariffs could potentially lead to volume as China looks to decrease its exports to the U.S..
softer export demands, which in turn may affect gateway cargo
volumes handled at PTP. As of now, PTP is actively monitoring Cognisant of the potential challenges that these tariffs will
all these developments as route adjustments could open up pose, the Port will continue to assess potential implications on
new transhipment opportunities or even present unforeseen cargo movements and supply chain patterns. Through an astute
challenges. By staying agile and data-driven amidst these prioritisation of cost competitiveness and agility, the Port remains
uncertain conditions, PTP can capitalise on emerging flows, confident of its robust strategic direction and resilience in dealing
maintaining its operational resilience and excellence as the port with these evolving market conditions.
of choice in the face of global supply chain shifts.

Aerial view of Johor Port's Container Terminal