IT may not be all doom and gloom once the 47th US president, Donald J. Trump, officially assumes office next January, as this may drive more investments into Penang.
Chief Minister Chow Kon Yeow said that the perceived trade and tech war between the US and China, which resulted in industries moving to Penang to escape the tariffs, may recur or expand if Trump proceeds to impose heftier tariffs on Chinese-made products and materials.
"We are cautiously optimistic but it remains to be seen what policies Trump would employ for his country."
He said that Malaysia's geo-political stance of neutrality to all sides including China and the US, could work in favour of Penang as a preferred global investment destination.
But this time, Chow also cautioned that both the US and China may adopt a stringent audit of exporters dealing with products associated with both economic superpowers.
Even if the firms export through Malaysia, China and the US may want to check the backgrounds of the firms such as the equity stake and who are the rightful owners.
So there is uncertainty out there, but Penang is optimistic that Trump's second presidency would not disrupt the economy.
Trump won the US election earlier this month on grounds of his "America First" agenda and on anti-migration besides the promises of resolving the US economic woes such as inflation. - The Vibes, November 12, 2024.
