GEORGE TOWN, July 9 — Penang Chief Minister Chow Kon Yeow has voiced serious concern over the United States’ imposition of a 25% tariff on Malaysian exports, warning of its potential economic impact on the state’s highly export-driven economy.
From January to May 2025, Penang contributed RM52 billion — or 55% — of Malaysia’s total exports to the U.S., largely in electrical machinery and semiconductors, with many goods produced by U.S. multinationals operating within the state.
Although semiconductors are currently exempt, Chow noted the broader tariff poses risks to global value chains and future investment flows, especially if tariff disparities across ASEAN persist.
He urged the Malaysian Government to step up negotiations with the U.S. to mitigate the tariff’s effects and reaffirmed Penang’s commitment to strengthening infrastructure, lowering business costs, and protecting the nation’s economic competitiveness.
