CHIEF Minister Chow Kon Yeow has expressed optimism that President Donald Trump’s expected attendance at the upcoming Asean Summit in Malaysia could positively influence ongoing tariff negotiations between Malaysia and the United States.
Speaking to reporters after his keynote address at the American Malaysian Chamber of Commerce (AmCham) Dialogue 2025: Recalibrating Malaysia, held at the Iconic Marjorie Hotel, Chow said Malaysia actively engages with the US on the issue and hopes the summit will provide a constructive platform for dialogue.
“Malaysia is a close and strategic partner of the United States.
We hope the narrative around Malaysia in the US remains positive, especially as we continue to play a vital role in the global supply chain,” Chow said.
While Penang will not be sending a direct representative to the federal-level tariff talks, Chow confirmed that feedback from the state has already been submitted to the Ministry of Investment, Trade and Industry (MITI) via InvestPenang.
“Many US multinational companies operate in Penang and are deeply embedded in the US supply chain.
“At the same time, Malaysian investments in the US continue to grow, reinforcing our mutual economic interdependence,” he added.
Chow’s remarks came amid a broader reflection on Penang’s industrial achievements and future ambitions.
In the first half of 2025 alone, Penang attracted RM2.6 billion in approved foreign direct investment (FDI) from the US, accounting for 81 per cent of total US manufacturing FDI in Malaysia.
Among the key contributors is Altera Semiconductor Technology, which committed RM1 billion to manufacturing FPGAs and integrated circuits in the state.
“Today, around 120 American companies operate in Penang, contributing not just capital and jobs but also technology, innovation, and community development,” Chow noted.
Between January and August this year, Penang exported RM79 billion worth of goods to the US.
Of Malaysia’s total RM76 billion in E&E exports to the US, Penang contributed a commanding 79 per cent, a figure Chow described as “a powerful reminder of how vital this relationship is.
Looking ahead, Chow highlighted the Penang Silicon Design @5KM+ (PSD@5KM+) initiative as a cornerstone of the state’s ambition to lead in semiconductor design, research, and innovation.
The initiative anchors three major components: the Penang IC Design and Digital Park, the Penang Chip Design Academy, and the Penang Silicon Research and Incubation Space.
“Our GBS By The Sea building now houses AMD’s new engineering facility, and two of our local incubates, Silicon X and SkyeChip, are developing proprietary chip technologies.
“If all goes well, we will soon be able to celebrate Malaysia’s very first ‘Made by Malaysia’ chip, designed and engineered right here in Penang,” Chow said.
He also welcomed the Federal Government’s Budget 2026 allocations, including RM550 million through Khazanah and Retirement Fund Inc (KWAP) to strengthen ecosystem partnerships, and RM500 million in loans from Bank Pembangunan to support high-value technological capabilities.
The launch of SemiconStart, an incubator for semiconductor startups, was also praised as a timely boost to the National Semiconductor Strategy.
“Sustainability remains a top priority for us. Through the Penang Green Industry Programme, we are building a future-ready industrial base that aligns economic growth with environmental responsibility,” Chow said, adding that Malaysia’s only two Global Lighthouse Network companies, Agilent and Western Digital, are both US firms based in Penang.
“After more than five decades of industrialisation, Penang stands on strong foundations.
“But the next phase, the recalibration, as today’s theme puts it, will depend on how we embrace change together,” he said.
Chow concluded by reaffirming the Penang government’s commitment to high-value manufacturing, technological innovation, and sustainability, while calling for continued collaboration with AmCham, the American business community, and global partners.
“The past has been extraordinary. But I truly believe the best is yet to come,” he said.
Also present at the event were AmCham Malaysia chairman Datuk Tim Garland and chief executive officer Datuk Siobhan M. Das.
Story by Kevin Vimal
Pix by Alissala Thian
Video by Darwina Mohd Daud