US tariff cut benefits Malaysia SMEs, says Penang CM Chow
The chief minister said that small and medium enterprises (SMEs) might remain exposed in the new tariff environment, and hoped that the Ministry of Investment, Trade and Industry (MITI) would continue negotiating for better deals for these businesses.
'We hope MITI will continue negotiating better deals and prepare for the possible impact, especially on our small and medium industries (SMEs), who may be more exposed in this new environment,' he told reporters at the GBS By The Sea launching ceremony in Bayan Lepas here, today.
Chow said that the current exemptions remained in place for now, but expects the situation to become clearer by the end of the year.
He highlighted that Penang accounted for about 55 per cent of Malaysia's electrical and electronics (E&E) exports, highlighting the state's vital contribution to the national economy and reinforcing the urgency for strategic trade negotiations.
It was reported earlier that the US would impose a reduced 19 per cent tariff on Malaysian imports, effective Aug 1, 2025.
On July 7, Washington announced a 25 per cent tariff on all Malaysian products entering the US, in addition to existing sectoral tariffs, effective Aug 1 this year. This figure was one percentage point higher than the tariff rate announced in April.
Meanwhile, on the Penang-Perak water project, Chow said negotiations with the Perak state authority would commence soon.
'We are working pretty well. Negotiations with Perak will begin very soon, followed by the implementation of the project. The target is by 2030 to 2031,' he said.
Chow added that the additional water supply would be crucial for supporting the Penang Development Corporation (PDC)'s efforts to open new areas for industrial development.
The chief minister also highlighted that Penang remained on a strong growth trajectory, driven by positive investment sentiment, including both new investments and expansions.
'We are currently focused on expanding our industrial parks. Recently, I announced that we have sufficient industrial land for the next five years.
'But sometimes, we may speak too soon. When one or two large investors come in with big land requirements, we have to work even harder to ensure the land is ready,' he said. - Bernama
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