CM: Penang must work to become self-reliant economy

PENANG needs to become a self-reliant economy rather than just a strong one to insulate itself from the global economic shocks.

Speaking on the Middle East conflict, Chief Minister Chow Kon Yeow said the next step towards consolidation is to be a force with strong ties with strategic partners within and outside the country.

Chow stressed that the state should aim for growth that continually strengthens its own foundations, where success builds stronger local capabilities, and progress benefits the wider ecosystem.

“This is because the global environment remains dynamic and uncertain. Recent tensions in the Middle East and warnings of potential trade disruptions remind us how quickly supply chains, shipping routes and energy markets can be affected.

“As an export - driven state, resilience must always guide our approach. We already have solid fundamentals such as high-value manufacturing, global business services, property development, construction, retail, tourism and a vibrant small and medium enterprises (SMEs) base."

Chow said this when attending the Penang Premium Business Enterprise Association 7th anniversary dinner at the E & O Hotel last night.

Chow also emphasised three practical priorities with the current challenges.

The conflict in the Middle East threatens to increase the living costs, with fuel prices among the first to be affected due to the disruption in the supply chain.

He said that the priority is to deepen local value creation.

"As projects grow in scale and sophistication, let us ensure more value remains within Penang. Stronger local supplier networks and higher standards will make our ecosystem more resilient against global uncertainties."

“Second, embed productivity and sustainability into everyday practice. Digital tools, improved project management, efficient building methods and energy-conscious designs are not trends; they are smart business strategies. Small, consistent improvements in efficiency can deliver significant long-term gains."

“Third, invest in leadership renewal. Penang’s continued progress depends on blending experience with fresh perspectives. Structured mentorship and opportunities for younger professionals to lead will ensure continuity and dynamism,” he said.

Chow noted that Penang’s story has always been one of reinvention — from trading port to manufacturing hub to a globally connected economy.

“Each phase has succeeded because the public and private sectors moved forward together with clarity, confidence and trust. The message tonight is: resilience is built through partnership. When government and industry are aligned, when feedback flows openly, and when businesses continue to innovate with diversity of ideas and boldness, growth becomes sustainable and enduring,” he said. - March 5, 2026.