PENANG Chief Minister Chow Kon Yeow reassures the investment community and manufacturers that the state is ready to weather potential challenges in global trade including possible hike in tariffs by the new administration of the United States (US).
Chow said the state has the capacity and capabilities to cope with the possible trade volatility in view of the possible increment in trade tariffs.
With Penang contributing approximately 5% of global semiconductor exports, the state plays a crucial role in the international electronics sector, Chow said, after attending the European Commission (EU) - Malaysia Business Day event at the E & O Hotel n George Town besides holding a delegation with the EU mission heads today.
The delegation was led by the EU Ambassador to Malaysia, Rafael Daerr.
“Malaysia and Penang are closely monitoring the (trade) developments. Being a major producer and exporter of semiconductors, any new tariffs or trade policies would primarily affect MNCs, which in turn would have implications on employment opportunities and potential future investments in Penang,”
Despite concerns over trade uncertainties, Chow remains optimistic about Penang’s resilience.
“I believe we are in a strong position to withstand any changes because we have been deeply rooted in this industry for the past five decades. This foundation gives us the strength to face such challenges,” he said.
Penang has taken proactive steps ahead of possible disruption to the global trade with its state agencies and industry players engaging in strategic partnerships to safeguard its economic interests.
One example, Chow pointed out was the importance of international collaborations, citing engagements between the EU and the state investment agency - InvestPenang.
“We are pleased that events such as the EU-Malaysia Business Day 2025, co-organised by the EU, EuroCham Malaysia, and InvestPenang, have reinforced our friendship as a collective group. Previously, we engaged with individual European nations, but collectively, the EU is an important trading partner,” he said.
The state remains committed to maintaining its position as a global electronics and semiconductor hub, leveraging its long-standing industrial expertise and international partnerships, said Chow. - February 14, 2025.
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