Time to rework negotiation playbook with US to reduce 25pc tariffs, Penang CM tells Putrajaya
The Penang lawmaker said the Ministry of International Trade and Industry (Miti) and the federal government need to urgently relook at their negotiating strategy.
'What we're doing now may not be enough — we must restrategise, and more importantly, enable the US more effectively and assertively,' he said in his speech at the official launch of the Penang Chip Design Academy at Penang Skills Development Centre here.
He said Malaysia must be able to make a stronger case.
'We owe it to our industry, our workers and our future,' he said.
He said he read news reports that some manufacturers might consider relocating from Malaysia and appealed to these companies to reconsider.
'There may be other challenges if they relocate so I feel working towards facing the challenges here would be a better way than relocating to a new place with other challenges,' he said.
He said if they were to relocate, the future in the new place is just as uncertain and it may not be better than when they are located here.
'We are moving into uncertainty so maybe we should wait and see, since negotiations is still ongoing,' he said.
Later in a press conference, he said the industries are now facing uncertainty due to the US tariffs but it is hoped that Malaysia will be able to get a better outcome at the end stage of the negotiations.
'The new tariff will only take effect from August 1, and it is pending any changes, we are not sure yet,' he said.
He agreed that a 25 per cent tariff is considered high by the industries so the government is also working towards lowering the tariff.
'Of course, not all industries, not all sub-sectors are impacted in the same manner, some are not impacted,' he added.
In the meantime, Chow said Penang will need to continue to build resilience during uncertain times like this.
'We have to continue to strengthen ourselves, our ecosystem and development of talent in the pipeline,' he said.
He said the state is continuously getting industrial lands ready and improving ease of business through speedy approval processes and implementation of projects.
'If an investor decides on Penang, they will be able to start operations and export in 12 months...all these help to increase our competitive edge,' he said.
He said neighbouring countries may enjoy a lower percentage of the tariff so Malaysia and Penang will have to face this and overcome it through its own measures and banking on its competitive edge.
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