PENANG is well-positioned to weather potential changes in global trade policies, including those stemming from the anticipated trade announcements by the United States under its President Donald Trump’s policy direction, says Penang Chief Minister Chow Kon Yeow.
With Penang contributing approximately 5% of global semiconductor exports, the state plays a crucial role in the international electronics sector.
Any modifications to trade tariffs and policies would have a direct impact, particularly on the multinational corporations (MNCs) operating within the state.
“Malaysia and Penang are closely monitoring the developments. Being a major producer and exporter of semiconductors, any new tariffs or trade policies would primarily affect MNCs, which in turn would have implications on employment opportunities and potential future investments in Penang,” Chow replied to a journalist during a media conference at E&O Hotel today.
Earlier, Chow delivered a keynote speech at the EU-Malaysia Business Day 2025 event.
Despite concerns over trade uncertainties, Chow remains optimistic about Penang’s resilience.
“I believe we are in a strong position to withstand any changes because we have been deeply rooted in this industry for the past five decades.
“This foundation gives us the strength to face such challenges,” he added.
Penang has taken proactive steps to prepare for possible disruptions, with state agencies and industry players engaging in strategic partnerships to safeguard its economic interests.
Chow acknowledged the increasing importance of international collaborations, citing engagements between the European Union (EU) and InvestPenang.
“We are pleased that events such as the EU-Malaysia Business Day 2025, co-organised by the EU, EuroCham Malaysia, and InvestPenang, have reinforced our friendship as a collective group. Previously, we engaged with individual European nations, but collectively, the EU is an important trading partner,” he said.
While the specifics of the upcoming United States trade policy announcement remain unclear, Chow assured that Penang is ever ready to face any challenges that may arise.
The state remains committed to maintaining its position as a global electronics and semiconductor hub, leveraging its long-standing industrial expertise and international partnerships.
Story by Christopher Tan
Pix by Alissala Thian