GEORGE TOWN: With 17% or RM76bil of Penang’s exports bound for the United States, the state is stepping up efforts to support local industries amid the new US tariffs.
Chief Minister Chow Kon Yeow said a tariff monitoring task force and an adaptation toolkit would be introduced to help exporters and SMEs navigate the evolving trade landscape.
The task force will serve as a central platform to monitor developments, engage affected sectors and coordinate with federal agencies.
“We will also work with the Federal Government on a toolkit to help exporters and SMEs navigate the complex terrain of tariffs, compliance and restructuring.
“It will include resources to help firms tap into alternative markets under the regional trade agreements within Asean as well as existing ones, such as the Regional Comprehensive Economic Partnership and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership,” Chow said after a US tariffs roundtable involving 35 state representatives and industry leaders yesterday.
He stressed these are long-term efforts that require coordination and stakeholder input.
“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 said.
Chow urged the Federal Government to support these state-led initiatives.
“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 benefited our region for decades.”
InvestPenang chief executive officer Datuk Loo Lee Lian said Penang’s 2023 exports to the United States made up 17% of the state’s total, while China and Singapore accounted for 18% and 15% respectively.
She noted that there were no immediate concerns over job losses or factory closures, as most manufacturers plan production months in advance and are still assessing the situation.
“We are setting up a tariff committee to seek feedback on the impact on members,” said Small and Medium Enterprises Association Malaysia northern region chairman Calvin Kwan.
“Members will also give input on how to alleviate the impact on their operations, supply chain, finance and other issues affecting their exports to the United States.”
Last week, US President Donald Trump announced a baseline tariff of 10% on all countries, with higher duties on some nations, including Malaysia at 24%.
On Thursday, he announced a 90-day pause to allow time for negotiations.
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