19-05-2025
- Business
- New Straits Times
Penang ramps up global push to cut market reliance
GEORGE TOWN: Penang, dubbed the Silicon Valley of the East, is stepping up global outreach to attract investment and reduce market reliance to support sustainable growth and counter US import tariffs, the state assembly was told today.
Chief Minister Chow Kon Yeow (DAP – Padang Kota) said this strategy is being supported by ongoing international engagement, with annual trade and investment missions led by InvestPenang targeting economic powerhouses such as Japan, South Korea, Taiwan, Europe, China, the United States and Singapore.
The resort island, famous for its sandy beaches, is home to a robust semiconductor ecosystem, hosting both multinational corporations and local firms involved in chip design, assembly, testing and equipment manufacturing.
Chow said that, in addition to these international missions, Penang's presence at global expos — including SEMICON Southeast Asia, the Kumamoto Industrial Revitalisation Expo, and the World Congress on Innovation & Technology (WCIT) — had helped the state secure new partnerships and elevate its global profile.
"These efforts aim to attract new investors and explore new market opportunities. These initiatives also help boost Penang's visibility in new markets," he said.
Chow also said Penang has introduced a range of measures to broaden its international market reach, aiming to support sustainable growth and reduce reliance on any single country.
"Penang has undertaken various initiatives, incentives and mitigation plans to diversify its international market reach. This is to ensure sustainable economic growth and to reduce dependency on a single country for market access," he said in response to a question from Gooi Hsiao-Leung (PKR – Bukit Tengah) at the state legislative assembly sitting today.
Gooi had asked about the impact of the United States' tariff imposition on Penang's economy.
Chow, in his speech during the Special Parliamentary Session on May 5, outlined a comprehensive roadmap of incentives and mitigation strategies designed to open new trade frontiers and position Penang at the heart of Asia's evolving technology ecosystem.
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Meanwhile, Chow said that to strengthen Penang's position in the semiconductor value chain, the state government would continue to align with the National Semiconductor Strategy (NSS) and the Penang Silicon Design@5km+ initiative.
He said this progress would be driven by nurturing local talent in integrated circuit (IC) design.
Investment for the Penang Silicon Design@5km+ initiative is projected at RM120 million over the next five years.
"The Penang government and the Federal Government have also jointly established a matching grant to propel this initiative forward. This collaboration will position Malaysia — particularly Penang — as a leading hub in the IC design ecosystem, driving innovation and economic growth," he said.
Chow said the Penang state government is offering an incentive package to encourage more integrated circuit (IC) design companies to set up or grow their operations in the state.
The package includes annual subsidies of up to RM2 million for three years, and is available to both local and foreign IC design firms operating in Malaysia, he said.
The US was Penang's second-largest export destination in 2023, accounting for RM76 billion, or 17 per cent of the state's total export value.
