PENANG Chief Minister Chow Kon Yeow has urged the Federal Government to continue to pursue further negotiations with the US over the import tariffs.
While expressing his gratitude to both the US and the Ministry of International Trade and Industry for reaching a revised tariff deal at 19%, Chow said there is room for more negotiations over time.
The import tariff was reduced successfully by Malaysia from a high of 25% to 19% and it will come into effect on August 7.
"Think we can still have a window right up to December to further our discussions on the tariffs," Chow said after opening the Global Business Services (GBS) by the Sea Building, which was developed by the Penang Development Corporation (PDC).
Earlier, Chow told journalists that Penang welcomes the tariff reduction as a step in the right direction for boosting trade competitiveness.
Chow disclosed that 55% of the semiconductor industry exports originated from Penang - which is a big player in the global supply chain for electronics and electrical items.
A majority goes into the many internet era driven products from autonomous vehicles to personal computers and cellular devices such as smartphones.
This development offers some relief to exporters, particularly in Penang’s key sectors such as manufacturing, and medical devices, he said.
Penang's manufacturing sector has been in limbo since US President Donald J. Trump imposed a rash of import tariffs.
Chow reckoned that the reduction is only partial, and Penang continues to face strong competition from regional economies that enjoy even lower or zero tariffs under other trade agreements.
As Malaysia is the current chair of the regional bloc of ASEAN, Chow urged Prime Minister Datuk Seri Anwar Ibrahim to use the platform to strike a better deal.
Trump is also expected to visit the region during the fourth quarter of this year, for the ASEAN leaders' summit.
"We strongly urge the Federal Government to continue negotiations for further tariff concessions, especially in sectors where Penang has strategic economic strengths. This will be crucial for us to remain competitive in the global supply chain and to attract high-value investments to Penang and Malaysia."
Penang is committed to its exporters and will explore all means to help them overcome the tariffs barrier, although it is the US consumers, who would bear the brunt of the import tariffs.
On the GBS, Chow spoke about how the global business platform is becoming another economic opportunity for the state to tap.
This is the fourth GBS of its kind - a dedicated service building to cater to the needs of the global corporate entities to support their industries in areas such as financing and human capital.
Chow said Penang has adequate industrial land for the next five years.
Despite the threat of tariffs, Chow stated that the investment climate continues to be upbeat, and the state is handling interest from various foreign direct investors.
GBS by the Sea is fully occupied with three major corporate entities taking up tenancy.
They are Advanced Micro Devices Global Services, Celestica Platform and Cloud Solutions Malaysia and Microsoft Knowledge Capital Centre.
The RM296 million project, nested inside the Bayan Lepas Free Industrial Zone offers 290,000 sq ft of space with 1,000 high skills jobs offered. - August 3, 2025.
