Penang keen to diversify economic ties, enhance relations with proven partners

PENANG is looking to diversify economic ties with all countries and economic zones in an age as global trade remains uncertain due to the threat of tariffs and sanctions.

The state also wants to consolidate its ties with proven partners such as Hong Kong, which is seeing rapid growth and development, said Chief Minister Chow Kon Yeow.

“Penang is eager to enhance relations with Hong Kong, recognising the similar economic ties and conditions, as well as the cultural relationship as key drivers for future growth,”.

Chow said this at a Lunar New Year dinner organised by the Hong Kong Economic & Trade Office, in collaboration with the Hong Kong Trade Development Council, the Hong Kong - Malaysia Business Association, and Invest Hong Kong.

He urged China's oldest economic hub - Hong Kong to see Penang’s role as a global leader in the semiconductor and electronics industries, contributing approximately 5% of global semiconductor exports, as an indicator for investments and trade ties.

“Penang has evolved into a global manufacturing hub, home to a thriving ecosystem of high-tech industries. It consistently ranks among Malaysia’s top exporting states, making a significant contribution to the country’s external trade,” Chow said at the gathering held at G Hotel.

In 2023, Penang’s exports totalled RM435 billion, accounting for 31% of Malaysia’s total exports – the highest among all states.

Over the past five years (2019-2023), the state contributed an average of 58% of the nation’s electrical and electronics (E&E) exports, with RM341 billion recorded in 2023.

Chow reaffirmed Penang’s commitment to strengthening ties with Hong Kong, particularly in the tourism sector.

We welcome the increasing number of travellers between Hong Kong and Penang, facilitated by more direct flights, he said.

“Hong Kong has also been a strong supporter of major events in Penang, such as the Penang International Dragon Boat Regatta and the George Town Festival,” he added.

Hong Kong-Malaysia Business Association president Dixon Chew praised the strong ties between both regions and expressed confidence in further collaboration.

Among those present were state Tourism and Creative Economy Committee chairman Wong Hon Wai, state Youth, Sports and Health Committee chairman Daniel Gooi, Consul-General of China in Penang Zhou Youbin, Hong Kong Economic & Trade Office director-general Libera Cheng, and Hong Kong Trade Development Council director Hoh Jee Eng. - February 26, 2025.