BUTTERWORTH: Penang is actively working to diversify and expand its export markets in response to the challenges posed by the US’s new retaliatory import tariffs. This strategic move aims to protect the sustainability of both the state’s economy and its broader contribution to Malaysia’s economic stability.
Penang’s Chief Minister, Chow Kon Yeow, emphasised the importance of these efforts amid global economic uncertainty, with particular concern over the recent tariffs imposed by the US. These tariffs have already started to affect Penang’s export trade, which has been significantly tied to the US market.
“During times like these, we must take more aggressive steps to empower local enterprises and ensure a resilient and sustainable supply chain,” said Chow during his speech at the Penang Aidilfitri Madani 2025 Celebration Ceremony held at the Picca Convention Centre in Arena Butterworth on Saturday. The event was attended by various key figures, including Prime Minister Datuk Seri Anwar Ibrahim.
Chow highlighted that the US was Penang’s second-largest export destination in 2023, with a trade value of RM76 billion, or 17% of the state’s total exports. Despite these challenges, Penang continues to enjoy a trade surplus with the US, which stood at RM57.7 billion last year.
“Although Penang was the nation’s top export contributor in February 2025, with a total export value of RM9.3 billion, the newly imposed tariffs are expected to have a significant impact,” Chow said. To address this, Penang has established the Penang Tariff Monitoring Task Force. This task force will act as a central platform to coordinate trade responses and engage with sectors impacted by the tariffs.
Chow reiterated his commitment to fulfilling his role as Chief Minister by taking proactive and relevant measures to align with the state’s current needs, ensuring the continued development of Penang’s economy and social progress.–BERNAMA
