GEORGE TOWN: Penang Chief Minister Chow Kon Yeow has welcomed the decision by the United States to reduce tariffs on Malaysian exports from 25% to 19%, as a right step towards boosting trade competitiveness.
He said the decision brings relief to Penang’s key sectors, including electrical and electronics (E&E), manufacturing, and medical devices.
Penang, known as the "Silicon Valley of the East", is home to more than 350 multinational technology companies and plays a pivotal role in the global semiconductor supply chain.
Chow said however, that while the lower rate was a step in the right direction, it remained only a partial cut.
“We still face strong competition from regional economies that enjoy even lower or zero tariffs under other trade agreements,” he said after launching the state-level National Month celebration and “Fly the Jalur Gemilang” campaign at Kompleks Masyarakat Penyayang on Friday (Aug 1).
Chow also said the state government sought further clarification from Putrajaya on the broader implications of the cut and the next course of action.
He urged the federal government to continue negotiating for deeper tariff concessions, especially in areas where Penang holds strategic economic strengths.
“This is crucial for us to stay competitive in the global supply chain and to attract future high-value investments to Penang and Malaysia as a whole,” he said.
Chow added that the state remained committed to supporting local industries and exporters as they navigated evolving trade conditions.
On the 13th Malaysia Plan (13MP), which was tabled on Thursday, he said it complemented the state's development goals under Penang2030.
"The focus on digitalisation, advanced technology and development of a value-based Madani social system aligned with the state's vision under Penang2030," he said.
He added that Penang will continue to mobilise resources and engage its citizens to accelerate the transition to a high-value economy while ensuring a more prosperous life for the people and a sustainable environment.
"As the 'Silicon Valley of the East', Penang appreciates the high-value projects listed, which promise strong investment returns. This proves that the state remains a significant contributor to national investment.
"The plans can help the state to also realise its goals," said Chow.
He also said that the plan will enable the state to empower its people to move towards a high-value economy, improve its image and standing in the global order.
Prime Minister Datuk Seri Anwar Ibrahim, when tabling the 13MP themed "Redesigning Development to Elevate the Dignity of the People”, said the next five years would be critical for Malaysia's journey towards becoming a high-income nation.
