GEORGE TOWN: The Penang government has stressed the need for continuous federal engagement with the United States to negotiate lower tariffs following Washington’s decision to impose a 25 per cent duty on Malaysian goods.
Chief Minister Chow Kon Yeow warned that the tariff could disrupt Penang’s export-driven economy, which contributes 55 per cent of Malaysia’s total exports to the US.
Chow highlighted that between January and May 2025, Penang’s exports to the US reached RM52 billion, with electrical machinery and equipment making up 77 per cent of shipments. A significant portion of these exports comes from US multinationals operating in Penang, which send finished products or components back to their parent companies.
While semiconductors remain exempt from the new tariff, Chow cautioned that the broader 25 per cent levy could still distort trade dynamics and affect investment decisions across ASEAN. He urged the federal government to address non-tariff barriers to maintain Malaysia’s trade competitiveness.
“Penang will collaborate closely with federal authorities and industry players to mitigate economic risks,” Chow said. “The state remains committed to improving infrastructure and business processes to sustain its role in the global supply chain.”
The call for action comes as Penang reinforces its position as a key player in international trade, with long-term strategies aimed at economic resilience amid external challenges. - Bernama
