Penang Actively Conducting Investment, Trade Missions To Reduce Impact Of US Tariffs

Barnama

19-05-2025

REGION - NORTHERN > NEWS
GEORGE TOWN, May 19 (Bernama) -- Penang, through its state investment agency InvestPenang, is actively conducting investment and trade missions to foreign countries to reduce the impact of the United States (US) tariff hike on the state's economy.
Chief Minister Chow Kon Yeow said the effort was aimed at attracting new investors and seeking new market opportunities including Japan, South Korea, Taiwan, Europe, China and Singapore.
'InvestPenang also participated in various international expos such as SEMICON Southeast Asia, Kumamoto Industrial Revitalisation Expo, World Fujian Convention and Exhibition, World Congress on Innovation and Technology (WCIT) and so on.
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'This effort can increase Penang's visibility to new markets,' he said in reply to a question from Gooi Hsio Leong (PH-Bukit Tengah) on the efforts made by the state government to deal with the impact of the US tariff hike at the Penang State Legislative Assembly sitting here today.
To improve Penang's position in the semiconductor value chain, Chow said the state government would maintain its commitment to the National Semiconductor Strategy (NSS) guidelines and the Penang Silicon Design @5km+ initiative.
He explained that the progress would be achieved by nurturing local champions in integrated circuit (IC) design with a total investment for the Penang Silicon Design@5km+ initiative projected at RM120 million over the next five years.
He also said the state and federal governments had established matching grants to drive the initiative forward and that the collaboration would position Malaysia, particularly Penang, as a leading player in the IC design ecosystem, driving innovation and economic growth.
To attract and support more IC design players to set up and expand their operations in Penang, Chow said the state government was offering an incentive package scheme consisting of subsidies worth up to RM2 million annually for three years to both local and foreign IC design companies based in Malaysia.
However, he said the initiative was dependent on funding allocations from the federal government to ensure full implementation of the programme and support for the growth of the industries involved.