THE Penang government has unveiled two key initiatives as part of a strategic response to recent United States (US) tariff measures, aiming to safeguard the state’s economic resilience and protect its export-driven sectors.
Chief Minister Chow Kon Yeow said the state government will first establish a ‘Penang Tariff Monitoring Taskforce’.
“This task force will function as a central coordination platform to track trade developments, engage with affected sectors, and inform responsive policy action.
“It will also support our efforts in collaborating closely with federal ministries like the Ministry of International Trade and Industry (Miti) and the Malaysian Investment Development Authority (Mida).
“Secondly, we will work together with the Federal Government to develop a ‘Trade Adaptation Toolkit’, aimed at helping our exporters and small and medium enterprises (SMEs) navigate the complex terrain of tariffs, compliance, and origin restructuring.
“This toolkit will include practical resources to help firms tap into alternative markets under regional trade agreements within ASEAN, as well as existing ones such as Regional Comprehensive Economic Partnership (RCEP) and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP),” Chow told a press conference at Penang Institute in Jalan Brown today.
According to Chow, these measures are part of Penang’s proactive approach to safeguarding its economy, supporting its businesses, and maintaining investor confidence.
“However, I must stress that these are not overnight solutions.
“We will need more time to finalise the mechanisms, consult with stakeholders, and secure inter-agency alignment.
“That said, Penang cannot and should not face this challenge alone.
“Thus, we call upon 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 these shocks alone,” he added.
Chow also mentioned that as Malaysia chairs ASEAN this year, he urges the federal government to rally its 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.
“To be clear, Penang is not retreating.
“We are realigning, recalibrating, and reaffirming our role as a key economic driver for the nation.
“We have faced storms before, and we will overcome this one as well, through collaboration, coordination, and confidence in our people and industries,” said Chow.
Chow’s remarks came after US President Donald Trump’s announcement on Wednesday (April 9), pausing planned tariff hikes on most countries for 90 days, a move aimed at calming jittery markets after a period of volatility.
However, Trump intensified tariffs on China, raising them to 125% citing Beijing’s ‘lack of respect’ in trade dealings.
On April 3, Trump announced that the United States would implement a baseline 10% tariff on all countries, with higher rates applied to specific nations.
Indochina countries were most affected by the tariffs, with Cambodia facing a combined baseline and retaliatory duty of 49%, followed by Laos (48%), Vietnam (46%), Myanmar (44%), Thailand (36%), Indonesia (32%), Brunei and Malaysia (24%), the Philippines (17%) and Singapore (10%).
Earlier, Chow also chaired a roundtable discussion at Penang Institute to further discuss US tariffs with various stakeholders, including industry leaders.
It was joined by 35 participants from state and federal government agencies, university academicians, and representatives from various trade associations such as the Free Industrial Zone Penang Companies Association (Frepenca), Federation of Malaysian Manufacturers Penang (FMM Penang), American Chamber of Commerce (Amcham), Penang Chinese Chamber of Commerce (PCCC), Penang Chinese Town Hall (PCTH), Small and Medium Enterprise Association (Samenta), and representatives from Bank Negara and multinational corporations (MNCs).
Deputy Investment, Trade and Industry Minister Liew Chin Tong joined virtually, while others, such as state Infrastructure, Transport and Digital Committee chairman Zairil Khir Johari, InvestPenang chief executive officer Datuk Loo Lee Lian, and Penang Institute executive director Datuk Dr Ooi Kee Beng were present physically.
Story by Riadz Akmal
Pix by Siew Chia En
Video by Ahmad Adil Muhamad