Chow says the incentive will be offered to eligible companies over a three-year period.
PENANG plans to offer an annual incentive package worth up to RM2mil to attract more integrated circuit (IC) design companies while supporting the expansion of their operations in the state.
Chief Minister Chow Kon Yeow said the incentive would be offered to eligible companies, local and foreign, over a three-year period.
However, he said the initiative’s success would depend on federal funding to ensure full implementation and sustained growth of the IC design sector.
He was responding to an oral question posed from Gooi Hsiao Leung (PH-Bukit Tengah) regarding the impact of US tariffs and the measures being taken by the state government to address the tariff hikes.
Chow said the 90-day postponement of further tariff increases between the US and China was a positive step toward de-escalating trade tensions.
The move, he noted, would significantly lower the risk of a full-scale trade war.
“Generally, the temporary tariff truce has improved the country’s economic growth prospects, with economic growth projections being revised in a more positive direction.
“It has reinforced Malaysia’s position as a preferred destination for companies adopting the ‘China+1’ strategy to diversify their supply chains.
“Malaysia’s strategic geographical position, competitive labour costs and favourable exchange rates will continue to make the country an attractive destination,” said the Padang Kota assemblyman.
Chow added that other incentive and mitigation plans had been developed to reduce Malaysia’s reliance on the US market.
Among them was the adaptation toolkit designed to assist exporters and small and medium enterprises (SMEs) in navigating the evolving global trade landscape.
The toolkit will provide practical resources and strategic guidance to help industry players identify and capitalise on alternative markets, particularly through regional trade frameworks.
These include Asean trade agreements, as well as broader multilateral arrangements such as the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Chow said Penang, through its investment promotion agency InvestPenang, remained proactive in attracting foreign investments by conducting targeted investment missions to key economies such as Japan, South Korea, Taiwan, various European nations, China, Singapore and the US.
He said InvestPenang also took part in prominent international expos and trade platforms, including Semicon Southeast Asia, the Kumamoto Industrial Revitalisation Expo, the World Fujian Convention & Exhibition and the World Congress on Innovation & Technology (WCIT).
Chow said the initiatives were vital in boosting Penang’s global visibility, positioning the state as a competitive and attractive destination for trade and investment across new and emerging markets.
