Penang actively diversify, expand export markets in view of US tariffs

Measures to actively diversify and expand export markets have been undertaken by Penang to safeguard the sustainability of both the domestic and national economic chains.

The move was crucial amid the current global economic uncertainty following the United States’ implementation of retaliatory import tariffs, said Penang Chief Minister Chow Kon Yeow.

“During times like these, we must take more aggressive steps to empower local enterprises and ensure a resilient and sustainable supply chain.

“I am committed to fulfilling my responsibilities as Chief Minister by taking proactive and relevant measures that align with current needs, to support Penang’s economic and social development,” he said at the Penang Aidilfitri Madani 2025 Celebration Ceremony at the PICCA Convention Centre @Arena Butterworth today.

The event was attended by Prime Minister Datuk Seri Anwar Ibrahim, Human Resources Minister Steven Sim Chee Keong, Education Minister Fadhlina Sidek, and Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar.

Chow also noted that the United States was Penang’s second-largest export destination in 2023, accounting for RM76 billion or 17 per cent of the state’s total export value.

The United States remained Penang’s main trading partner, contributing to a trade surplus of RM57.7 billion last year.

“Although Penang was the nation’s top export contributor in February 2025, with a value of RM9.3 billion, the newly imposed tariffs are expected to have a significant impact,” he said.

To mitigate the effects, Chow said the state had set up a Penang Tariff Monitoring Task Force, which would serve as a central platform to coordinate trade responses and engage with affected sectors, as announced yesterday.

The state-level Aidilfitri Madani 2025 celebration was jointly organised by the Penang State Government and the Ministry of Human Resources.