Time to diversify, not rely on sole trading partner, says Penang CM

PENANG must diversify its electronics and electrical (E&E) driven economy and avoid relying on a single trading partner in the face of global trade tensions, said Chief Minister Chow Kon Yeow.

Despite the latest tariffs by the United States (US), a major trade ally that semiconductors may be subjected to a 100% import tariffs, Chow said that the state needs to instil resilience when dealing with exporting of their digital products.

Chow was speaking at the Penang Digital Economy Summit 2025 and the launch of the Penang Digital Economy Master Plan (DEMP) 2025–2030 at the G Hotel, Penang.

He underscored the recognition that the state’s digital economy is a key driver of resilience, contributing significantly to Penang’s services sector and exports.

Penang exports almost 45% of its semiconductor items to US and it has expanded to include pharmaceutical products, jewellery and some high tech components.

“Today marks a defining moment in Penang’s journey towards becoming a future-ready digital state – one empowered by innovation, inclusivity, and resilience."

He said that the DEMP is fully aligned with the Penang2030 vision of a Family-Focused, Green, and Smart State that Inspires the Nation.

The master plan also addresses the 13th Malaysia Plan’s priorities of inclusivity, high technology, and readiness to embracing an ageing population.

“The digital initiatives lays out clear strategies to ensure mature workers and senior citizens are empowered through digital tools, skills development programmes, and accessible, age-friendly services,” he said.

Digital Penang, a state linked agency, listed among its achievements that it has improved the digital literacy for 18,500 residents, while the Penang Connectivity Masterplan expanded statewide internet access.

Digital Penang was also established as a Centre of Excellence for data, innovation, and smart governance.

Its chief executive officer Ng Kwang Ming said the one-day summit featured seven local start-ups alongside telcos, e-commerce companies, and government-linked corporations.

On connectivity, state Infrastructure, Transport and Digital Committee chairman Zairil Khir Johari reported that Penang’s 5G coverage has reached about 92%, while 4G coverage is almost 99.9%.

Present were Malaysia Digital Economy Corporation (MDEC) chief executive officer Anuar Fariz Fadzil, InvestPenang chief executive officer Datuk Loo Lee Lian, and Cradle Fund Group chief executive officer Norman Matthieu Vanhaecke. - August 9, 2025.