GEORGE TOWN: Penang will set up a tariff monitoring task force and develop a toolkit to help affected sectors deal with the tariffs announced by the United States.
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 responsive policy action.
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"It will also support our efforts in collaborating closely with federal bodies like the Investment, Trade and Industry Ministry (Miti) and the Malaysian Investment Development Authority (Mida).
"We will work with the Federal Government to develop the toolkit, which is aimed at helping our exporters and small and medium-sized enterprises (SMEs) navigate the complex terrain of tariffs, compliance and restructuring.
"It will include resources to help firms tap into alternative markets under regional trade agreements within Asean as well as existing ones such as the Regional Comprehensive Economic Partnership (RCEP) and the Progressive Agreement for Trans-Pacific Partnership (CPTPP)," he told a press conference here after a US tariff roundtable discussion with state representatives and industry leaders on Friday (April 11).
Chow said these measures are part of Penang's proactive approach to safeguarding the economy, supporting local businesses and maintaining investor confidence.
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"I must stress that these are not overnight solutions.
"We will need time to finalise the mechanisms, consult with stakeholders and secure inter-agency alignment.
"To be clear, Penang is not retreating. We are realigning, recalibrating and reaffirming our role as a key economic driver for the nation.
"We need to look after our industries and people," he added.
Chow urged 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 any tariff shocks alone.
"As Malaysia chairs Asean this year, we urge the Federal Government to rally our regional partners and utilise a united Asean voice as a cushion to these unilateral trade actions.
"A coordinated Asean stance can help preserve open supply chains, investor confidence and the spirit of rules-based trade that has benefitted our region for decades," he said.
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Chow said the diversification cannot be done overnight.
"Some of these deals have been in place for 55 years.
"We need to look into other sectors, including the digital economy, beyond our core electrical and electronic sector," he said.
US President Donald Trump announced on April 2 that the United States would introduce a baseline tariff of 10% on all countries and higher duties on some countries, including Malaysia at 24%.
On Wednesday (April 9), he announced a 90-day pause on the tariffs but retained a 10% levy on almost all global imports to the United States.
