PENANG is optimistic that Malaysia can secure a win-win outcome over the US import tariffs issue when President Donald J. Trump visits the country next week for the 47th ASEAN leadership summit.
Chief Minister Chow Kon Yeow said that he was confident that both US and Malaysia can clear the air of misconception over the import tariffs and a favorable outcome can be reached by both sides.
Chow made such observations following reports that US is studying the possibility of imposing steep tariffs on semiconductor products which are a lifeline to Penang's manufacturing sector.
Speaking after attending a dialogue luncheon with the American-Malaysian Chamber of Commerce members at the Iconic Majorie Hotel here, Chow said that it is during such sessions that he hopes to deliver positive feedback to both the American and Malaysian business community.
"I hope that when Trump visits Malaysia next week, we can find a lasting resolution to the tariff issue.
"I believe that Malaysia tried its best to state its stand that we are not a competitor to the US."
On the contrary, Chow said that Penang in particular, was a close partner to US and its multinationals, who formed a crucial and core part of the global supply chain into US for semiconductor parts.
"We are part of the supply chain for the US. And Malaysian companies are now also investing in the US."
It is a positive narrative, which Chow hopes can convince Trump to find a solution in terms of his outlook on trade tariffs.
Malaysian companies are complementing their US investors to improve the supply chain, he said.
Earlier when delivering his keynote address entitled: Recalibrating Malaysia, Chow said that the word isn't just about realignment with one partner but about navigating a changing world order.
"We are seeing the rise of multipolarity, where no single center of power dominates, but multiple forces shape global trade and diplomacy," said Chow.
Chow spoke of the close ties with US, espousing that from January till June this year, Americans invested up to RM2.6 billion in Penang, accounting for 81 percent of the total US manufacturing of foreign direct investments into the country.
Today, he singled out that there are about 120 US companies operating in Penang.
Between January and August this year, Penang exported RM79 billion worth of goods to the US and in Malaysia's total of electrical and electronics exports to US, valued at RM76 billion, Penang contributed 79 percent of it.
"Penang isn't resting on its laurels."
Chow said that the state aspires to climb up through the value chain with the setting up of the Silicon Design center to strengthen the state's hold on design, research & development (R & D) and innovation.
Among the American companies with R & D facilities in Penang, are Motorola and Intel. - October 16, 2025.
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