THE trade uncertainty which has clouded the year due to the United States (US) move to impose import tariffs will continue in Penang, says Chief Minister Chow Kon Yeow.
This follows reports that the world's biggest economy wants to now extend tariffs on the semiconductor industry, with the tariffs pegged at 100%.
Previously, there were reports that the US has no interim plans to impose tariffs on the industry, which forms the bulk of Penang's manufacturing sector.
But following reports that US plans to expand the tariffs on the sector, Chow said that he will refer to the Ministry of International Trade, Investments and Industry (MITI) to respond accordingly.
Penang also exports pharmaceutical production so it remains to be seen if the state can cope with the double taxation through the proposed tariffs.
Chow told a press conference that currently both sectors enjoy zero tariffs.
Since 2020 until the first quarter of this year, Penang has recorded RM191.4 billion worth of approved foreign direct investments, which in turn generated 79,498 jobs for all Malaysians.
Chow said that Penang adopts an open-policy, allowing Malaysians from all states to work here, while also offering incentives to retain talents.
Malaysians involved in the manufacturing sector, are allowed access to special housing initiatives under the state's effort to woo new talents.
Asked if there was feedback from multinational corporations operating here, Chow said that there is a wait and see posturing, but stressed that life goes on with or without the tariffs.
Penang continues to record robust enquiries from various companies, including from the US about the possibility of investing here.
Renowned as the "Silicon Valley of the East," Penang is home to thousands of producers of computer chips as well as electrical and electronic (E & E) components.
As the world becomes increasingly reliant on semiconductor technology, Malaysia is positioning itself as a crucial partner in the global supply chain.
The country's semiconductor exports, mainly through Penang is currently ranked sixth in the world.
it is set to climb higher as investments in advanced technologies continue to pour in due to the state's favourable eco - system for E&E.
Penang is also a strategic logistic hub with good access to sea, air and land.
Chow said that the state's move to upscale its industries is also bearing fruit with much interest in global business systems and start-ups.
Earlier, Chow also announced that the annual "Love Penang Run," will be held for the first time at Stadium Berek in Bukit Mertajam.
There will be at least 10,000 participants.
Organised by the Penang Forward Sports Club, the event promises to be one of the biggest in the state. - August 7, 2025.
