GEORGE TOWN: The Penang state government will establish a tariff monitoring task force as part of its strategic response to the United States’ (US) recent tariff announcement.
Chief Minister Chow Kon Yeow said the task force will function as a central coordination platform to track trade developments, engage with affected sectors and inform of responsive policy action.
The initiative will support Penang’s efforts to collaborate closely with the Investment, Trade and Industry Ministry (MITI) and its agency Malaysian Investment Development Authority (MIDA).
“The recent announcement by the US to impose broad tariff on imports from Malaysia, rising to 24 per cent in most cases, has raised serious concerns for the nation and particularly Penang.
“As one of Malaysia’s most trade-dependent and export-driven states, Penang is directly exposed to the implications of these measures. Therefore, Penang outlines two key initiatives,” he said in a press conference after a discussion “Strategic Response to US Tariffs: Safeguarding Penang’s Economic Interests” at the Penang Institute today.
Another key initiative is for Penang to work with the federal government to develop a trade adaptation toolkit to help its exporters and small and medium enterprises (SMEs) navigate the terrain of tariffs, compliance and origin restructuring, he said.
The toolkit includes practical resources to help firms tap into alternative markets under regional trade agreements within ASEAN and the existing Regional Comprehensive Economic Partnership and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
“These measures are part of Penang’s proactive approach to safeguard our economy, support our businesses and maintain investor confidence. However, these are not overnight solutions. We will need time to finalise the mechanisms, consult with stakeholders and secure inter-agency alignment,” he said.
He said Penang could not and should not face this challenge alone.
“We call upon the federal government to support these state-led initiatives, particularly in ensuring that smaller firms, vendors, and export-reliant SMEs are not left to shoulder these shocks alone,” he added.
He said a coordinated ASEAN stance could help preserve open supply chains, investor confidence and the spirit of rules-based trade.
“Penang is not retreating. We are realigning, recalibrating, and reaffirming our role as a key economic driver for the nation. We have faced storms before, and we will overcome this one as well, through collaboration, coordination, and confidence in our people and industries,” he said.
Thirty-five participants took part in the roundtable discussion, including representatives from the state government, state and federal agencies, Bank Negara Malaysia, educational institutions, trade associations, chambers of commerce, SMEs and multinational corporations.
Meanwhile, InvestPenang chief executive officer Datuk Loo Lee Lian in the same press conference said there are no immediate concerns of massive unemployment or companies shutting down in Penang following the US tariff event the last 10 days.
“We are not at that stage yet,” she said.
Exports from Penang-based companies to the US amounted to 17 per cent in 2023, totalling RM76 billion while Malaysia’s overall exports to the US are RM161 billion, with the electrical and electronic sector being the main contributor.
