KUALA LUMPUR – In response to the United States’ recent sweeping tariff measures, the Penang state government has announced two major initiatives to shield its economy and safeguard its export-reliant sectors – a tariff taskforce and a trade toolkit.
Chief Minister Chow Kon Yeow said the Penang Tariff Monitoring Taskforce will serve as a centralised coordination platform to monitor trade developments, engage impacted industries, and support policy formulation.
“This taskforce will also facilitate collaboration with federal ministries such as the Investment, Trade and Industry Ministry and the Malaysian Investment Development Authority,” Chow said during a press conference at the Penang Institute in George Town yesterday.
Penang will work alongside the federal government to develop a Trade Adaptation Toolkit designed to help exporters and small and medium enterprises (SMEs) adapt to the increasingly complex landscape of tariffs, compliance requirements, and origin restructuring, Buletin Mutiara reported.
“The toolkit will provide practical resources to help companies explore alternative markets under regional trade frameworks such as Asean, the Regional Comprehensive Economic Partnership (RCEP), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP),” he added.
Chow stressed that while these measures represent a proactive and strategic approach to the unfolding trade scenario, they are not overnight fixes.
“We will need time to finalise the mechanisms, engage stakeholders, and align across agencies,” he said.
Penang, one of Malaysia’s most export-driven states, is particularly exposed to the economic impact of the new tariffs. The United States now imposes a 24% tariff on imports from Malaysia – part of a broader trade escalation that has seen tariffs on China surge to 125%, with neighbouring Asean countries also significantly affected.
“We cannot and should not face this challenge alone.
“We urge the federal government to back these state-led efforts, especially to ensure that smaller firms, vendors, and export-dependent SMEs are not left to bear the brunt,” Chow emphasised.
He also called on Putrajaya to leverage Malaysia’s role as Asean chair this year to galvanise a coordinated regional response.
“A united Asean voice can help safeguard open supply chains, investor confidence, and the spirit of rules-based trade that has supported our region for decades,” he said.
“To be clear, Penang is not retreating. We are realigning, recalibrating, and reaffirming our role as a key economic driver for the nation. We’ve weathered storms before – and we will do so again – through collaboration, coordination, and confidence in our people and industries.”
Chow’s announcement comes in the wake of US President Donald Trump’s April 9 statement, in which he paused a planned tariff hike on most countries for 90 days, aiming to calm market volatility. However, Trump raised tariffs on China sharply, citing its “lack of respect” in trade.
Earlier, Chow had chaired a roundtable discussion on the US tariffs, joined by 35 stakeholders including state and federal agencies, trade associations, academicians, and industry representatives.
Among them were Free Industrial Zone Penang Companies Association (FREPENCA), Federation of Malaysian Manufacturers Penang (FMM Penang), American Chamber of Commerce (AMCHAM), Penang Chinese Chamber of Commerce (PCCC), and Bank Negara Malaysia.
Deputy Investment, Trade and Industry Minister Liew Chin Tong attended the session virtually, while other notable figures present included Penang Infrastructure, Transport and Digital Committee chairman Zairil Khir Johari, InvestPenang CEO Datuk Loo Lee Lian, and Penang Institute executive director Datuk Dr Ooi Kee Beng.
Datuk Loo, speaking at the same press conference, noted that while the tariff situation is serious, there is no immediate fear of mass unemployment or business closures.
“We are not at that stage yet,” she said.
In 2023, Penang-based companies exported RM76 billion worth of goods to the US, accounting for 17% of total exports. Malaysia’s total exports to the US stood at RM161 billion, with the electrical and electronics sector making up the bulk. – April 12, 2025