CHIEF Minister Chow Kon Yeow has reaffirmed the state’s commitment to resilience, innovation, and global competitiveness in the face of growing trade tensions, stating that Penang is well-positioned to navigate and lead during this uncertain period in global economics.
Speaking at a luncheon with members of the Malaysian International Chamber of Commerce and Industry (MICCI), Chow emphasised that Penang’s role as a critical node in global supply chains leaves it acutely exposed to international economic disruptions but also uniquely placed to seize new opportunities.
“While we are technically here to talk business, these engagements are really about exchanging ideas, forging connections, and being candid about the challenges we face, and not only in Penang but across Malaysia,” Chow said.
Chow had initially been slated to speak on ‘Penang on the Rise – Focusing on Infrastructure, Sustainability & Innovation,’ but shifted his tone in light of recent geopolitical developments.
He cited the recent ASEAN Summit in Kuala Lumpur, which underscored the fragile state of global trade, particularly following the United States’ announcement of tariffs on imports ranging from 10 to nearly 50 per cent.
Penang does not have the luxury of turning a blind eye.
“Our economy is tightly interwoven with global supply chains, from semiconductors to precision tools and medical devices.
When shocks occur, the tremors are felt not only in Silicon Valley or Shanghai but right here in Bayan Lepas and Batu Kawan,” he said.
However, Chow noted that there may be cause for cautious optimism.
With indications that tariffs on Malaysian goods may be capped at 10 per cent as opposed to the feared 24 per cent or more, Chow praised Malaysia’s diplomatic efforts and proactive leadership.
“I applaud the Prime Minister Datuk Seri Anwar Ibrahim and our Minister for Investment, Trade and Industry, Tengku Datuk Seri Zafrul Tengku Abdul Aziz, for taking swift, strategic steps, including directly engaging the U.S. leadership.
“It is proof that diplomacy still works when backed by a strong policy foundation and credible leadership,” Chow said.
Still, he cautioned that a 10 per cent tariff is not insignificant, and businesses in Penang must remain agile, competitive, and forward-looking.
Separately, Chow underscored the importance of strong public-private collaboration in navigating these changes, highlighting the role of MICCI and its members as strategic partners.
“You are more than just the voice of business.
“Through feedback, policy alignment, and talent development, your collaboration with the state government, particularly through InvestPenang and PDC, helps ensure we cannot only adapt but lead,” he said.
Echoing Penang’s history as a trading hub turned technology powerhouse, Chow concluded his remarks with a message of resilience and opportunity.
“Penang remains open for business, open for innovation, and open for collaboration. Let us not just respond to uncertainty but lead through it,” he stated.
Also present earlier were state executive councillors, Daniel Gooi Zi Sen and Lim Siew Khim, and MICCI Northern branch chairman Datuk Brian Tan Guan Hooi.
Story by Kevin Vimal
Pix by Alissala Thian
Video by Siew Chia En