PENANG is bracing for possible global market uncertainties following US President Donald Trump’s announcement on a proposed 100% tariff on semiconductor chips manufactured in countries without US-based production facilities.

According to an English Daily, although no formal directive has been issued, Malaysia remains temporarily exempt from the 19% “reciprocal” tariff expected to take effect on August 8.

Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz confirmed that local semiconductor products are not impacted by the new policy for now.

Chief Minister Chow Kon Yeow, responding to the latest developments, said Penang remains cautiously optimistic but acknowledges the potential risks tied to global trade tensions.

“It has not been finalised yet. We are still waiting for the official announcement, which is expected by the end of August.

“For Penang, we feel the uncertainty surrounding this tariff issue, especially for the industry, will remain.

“This could mean that investors may adopt a wait-and-see approach, as it could impact their investment plans later,” Chow said during a press conference in Komtar today.

At the same press conference, Chow announced two major events set to take place in Penang this year, namely Love Penang Run 2025 and ‘Hari Buletin 4.0 Bersama TLDM’.

Returning for its fourth edition, the Love Penang Run will be held on Nov 23 at Stadium Betek in Bukit Mertajam. Meanwhile, Hari Buletin, a special collaboration with the Royal Malaysian Navy (TLDM), will take place on Aug 17 at the Esplanade, running from 8am to 6.30pm.

Separately, Chow assured that efforts at the federal and state levels are ongoing to safeguard Malaysia’s position, especially in key sectors such as semiconductors and pharmaceuticals, both of which currently enjoy 0% export tariffs to the United States.

“We continue to hope that the tariff on semiconductor exports remains unchanged.

“MITI is working hard to ensure our position is protected,” he added.

Chow also took the opportunity to highlight Penang’s robust investment record over the last five years.

“From 2020 to Q1 2025, Penang recorded RM191.4 billion in approved manufacturing investments.

“These investments have created 79,498 job opportunities,” he shared.

While official statistics on the number of workers coming from outside Penang were unavailable, Chow reiterated the state government’s inclusive approach.

“The Penang government’s stance has always been open.

“We welcome all Malaysians, regardless of which state they are from, to work and build their futures here,” he said.

He pointed to initiatives such as Rumah Bakat Baru MADANI, as well as job matching and upskilling programmes through Penang Skills Development Centre (PSDC), and Penang Silicon Design @5KM+, designed to encourage talent mobility and home ownership in the state.

“We have no barriers. We offer many incentives. Our programmes are aimed at ensuring Malaysians from other states can also find opportunities in Penang and be part of our booming economy,” he further emphasised.

Despite the global trade concerns, Penang’s industrial ecosystem continues to draw strong investor interest.

“This morning, I attended a crucial coordination meeting to prepare for a major investment that is still at an early stage.

“We are mobilising all relevant agencies to accommodate this potential investment,” Chow revealed.

State investment arms such as InvestPenang and the Penang Development Corporation (PDC) remain actively engaged in managing inquiries and facilitating due diligence for potential investors.

“The world has not come to a standstill. We are still receiving strong interest, and will remain focused on creating a conducive environment for both local and foreign investors,” Chow said.

Story by Kevin Vimal Pix by Siew Chia En

Video by Siti Nuratikah Rahmat