The Malaysia-US ART agreement offers tariff-free US market access for Penang halal SMEs, E&E sector, and agriculture commodities.
GEORGE TOWN: The Malaysia–United States (US) Agreement on Reciprocal Trade (ART) is expected to open tariff-free access to the US market for local halal small and medium enterprises (SMEs), including those in Penang.
Chief Minister Chow Kon Yeow said the initiative could make export activities easier and more cost-effective, while enabling Penang’s halal SMEs to integrate into high-value global supply chains as strategic partners to US companies in the high-tech industry.
“Penang’s halal industry has a significant growth potential, especially in the ready-to-eat and processed food segments.
“Ongoing support from the state government, along with close collaboration with federal agencies and the private sector, is expected to help local halal SMEs tap into these opportunities and expand their operations internationally,” he said during the Penang State Legislative Assembly sitting today.
He said this in response to a question from Zhar Shah Arif Shah (PN-Seberang Jaya) on the ART’s impact on Penang, including its direct impact on the electronics and electrical (E&E) sector, foreign investments, high-skilled jobs, and risks faced by the SME, agriculture and halal industries.
Chow said the state government remains mindful of potential challenges that may arise from the implementation of the ART, particularly in maintaining competitiveness, compliance with halal standards and export stability.
As such, he said the state government is studying various measures to strengthen the state’s halal ecosystem to align with the opportunities arising from the implementation of the agreement.
He added that the ART is also expected to create wider opportunities for Penang’s E&E sector to enter the US market, attract new foreign direct investments (FDI) and generate more high-skilled jobs.
According to him, the agreement could also drive stronger technical training programmes and improve the local workforce’s capabilities to meet the demands of high-tech industries while supporting sustainable economic growth.
As for the agriculture sector, Chow said the ART is expected to have positive effects on commodities such as natural rubber, palm oil and other food products, potentially benefiting the state through the development of innovative agricultural products, value-added processing and access to more premium agriculture markets, even though Penang is not a major national producer of these commodities.
He stressed that the state government remains proactive in ensuring that the local business community stays competitive through various empowerment initiatives, even though the agreement may introduce challenges to the SME, agriculture and halal sectors.
Malaysia and the US signed the ART on Oct 26 during the 47th ASEAN Summit in Kuala Lumpur. – Bernama
