‘Realigning, not retreating’: No mass layoffs or shutdowns in Penang despite US tariffs, says InvestPenang

‘Realigning, not retreating’: No mass layoffs or shutdowns in Penang despite US tariffs, says InvestPenang



There have been no major retrenchments or company closures in Penang due to US tariffs, with most firms reassessing strategies to cushion the impact, said InvestPenang CEO Datuk Loo Lee Lian. — Picture courtesy of Wawasan Open University

Friday, 11 Apr 2025 1:46 PM MYT


GEORGE TOWN, April 11 — There are no massive retrenchments or company shutdowns in Penang due to the tariffs imposed by the United States, according to state’s investment promotion agency InvestPenang.

InvestPenang chief executive officer Datuk Loo Lee Lian said most companies in the state are going back to the drawing board to see how to best cushion the impact of the tariffs.


“There are no massive company shutdowns or relocations due to the tariffs imposed, most of them are in discussions to realign their supply chain at this moment,” she said in a press conference with Penang chief minister Chow Kon Yeow after a roundtable discussion on strategic response to US tariffs at Penang Institute here.

She added that the production schedules of most manufacturers were planned three to six months ahead so they would not be doing anything hasty for now.


As such, she said there would not be massive unemployment since the companies are rationalizing the impact of the tariffs for now.



“We are not up to a situation where there is massive shutdowns yet,” she said.

Loo said exports from Penang to the US make up about 17 per cent which amounted to RM76 billion back in 2023.


Meanwhile, the total exports from Penang to China make up 18 per cent and exports to Singapore are 15 per cent.

The main contributor to the exports is the electronics and electrical sector.

There were 35 participants in the roundtable meeting from state and federal agencies with representatives from various trade organisations, business chambers, SMEs and multinational companies.

Chow also announced that a Penang Tariff Monitoring Taskforce will be established to function as a central coordination platform.

The taskforce will track trade developments, engage with affected sectors and inform responsive policy action.

“It will also support our efforts in collaborating closely with federal ministries like MITI and MIDA,” he said.

He said the state will work with the federal government to develop a trade adaptation toolkit to help exporters and SMEs.

“This toolkit will include practical resources to help firms tap into alternative markets under regional trade agreements within ASEAN as well as existing ones such as RCEP and CPTPP,” he said.

The RCEP is the Regional Comprehensive Economic Partnership and CPTPP is the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

Chow said these measures are part of Penang’s proactive approach to safeguarding the state’s economy while supporting the businesses and maintaining investor confidence.

He said Penang cannot do this alone, so he will raise this issue tomorrow with the Prime Minister during the Madani Raya Open House here.

He said the state needs federal support to ensure that smaller firms, vendors and export-reliant SMEs are not left to shoulder the impact on their own.

“To be clear, Penang is not retreating, we are realigning, recalibrating and reaffirming our role as a key economic driver for the nation,” he said.

He believed Penang will be able to overcome this through collaboration, coordination and confidence in its people and industries.