GEORGE TOWN: Penang can overcome challenges from tariff changes announced by United States President Donald Trump’s administration, according to Chief Minister Chow Kon Yeow.
He emphasised that Penang, which exports about 5.0 per cent of the world’s semiconductors, is closely monitoring developments from the US.
“Any new tariff policy will impact the multinational corporations (MNCs) operating in the state and therefore directly affect the state in terms of employment opportunities and investment potential for the future.
“However, I believe we are in a strong position to withstand any change in tariff and other trade policies because we have been deeply rooted for the past five decades to face such challenges,“ Chow told a joint press conference with the Ambassador to the European Union (EU) to Malaysia, Rafael Daerr, here today.
The chief minister also said the state government’s commitment to positioning Penang as a hub for high-value manufacturing and technological innovation remains unwavering.
Chow highlighted that Penang is keen to forge stronger partnerships with the EU and address the challenges in the ever-shifting global semiconductor landscape.
“The state government through InvestPenang stands ready to provide a conducive environment for EU businesses to thrive, innovate, and contribute to Malaysia’s economic success,“ he said.
Meanwhile, Daerr said the EU business community in Malaysia has a long-standing presence and Penang is strategically placed in the centre of the key focus area.
He said Penang is a prime location for high-tech and high-skill industries in Malaysia and has the strongest orientation towards international trade.
“This, in turn, has attracted numerous EU companies and investors, including in future-oriented sectors such as the electrical & electronics industry, medical products, precision engineering and equipment, and aviation.
“From 2019 to 2023, Penang secured nearly RM100 billion in approved manufacturing investments from the EU, accounting for 51 per cent of the state’s total approved manufacturing investments.
“During the same period, Penang exported RM140 billion worth of goods into the EU,“ said Daerr.
The delegation of the EU to Malaysia, in partnership with the Penang state government, EUROCHAM Malaysia and InvestPenang hosted the “EU-Malaysia Business Day 2025: Penang in Focus” panel session today.
The one-day event is aimed at strengthening economic ties and fostering collaboration between European and Malaysian businesses.
