THE manufacturing sector in Penang continues to be in a state of apprehension due to the uncertainty in the United States (US) import tariffs.
InvestPenang chief executive officer (CEO) Datuk Loo Lee Lian said the situation remains fluid just as it was two months ago when the threat of tariffs was first levelled at the rest of the free trading world by US.
"We await the negotiation efforts undertaken by the Malaysian diplomatic corps. There is no change and no communication between both sides."
Hence, Penang will wait for a firm outcome from the negotiations, said Loo.
She said that Penang has issued a statement from Chief Minister Chow Kon Yeow that the state has engaged the stakeholders and the decision is to wait for the negotiations to be finalised between both nations.
The feedback from the factories is that there is a pause in production until a clearer outcome is defined soon, said Loo.
Penang is a leading electronics and electrical hub of the global supply chain, and it is a testament to the state's evolution as a manufacturing hub in the region.
In addition, for last year, the state attained RM14.7 billion in approved investments in the services sector, contributing 46% of the national total.
Chow earlier said that trade would not come to a standstill just because of the tariffs.
He said that the state's aim is to be resilient and to remain solid on ensuring that the manufacturing sector as well as trade is not adversely affected.
He said that talent development will continue
Meanwhile, Penang Skills Development Corporation (PSDC) CEO Dr Hari Narayanan said that manufacturers have no choice but to wait out the outcome.
Although US had mentioned that there would not be any tariffs imposed on electrical and electronics components, the vague description of the tariffs is making everybody edge and indecisive.
Hari, who used to manage Motorola Solutions, said that the training of upskilling Penang workers should continue despite the uncertainty. - June 5, 2026.
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