Penang seeking to capitalise on US-China trade war
Penang will take a multi-pronged approach to minimise the impact of the protracted trade dispute between the United States and China on the economy, according to special adviser to the chief minister Lee Kah Choon.
At a press conference today, Lee said the trade war could even create new business opportunities for Penang's manufacturing industry...
Penang will take a multi-pronged approach to minimise the impact of the protracted trade dispute between the United States and China on the economy, according to special adviser to the chief minister Lee Kah Choon.
At a press conference today, Lee said the trade war could even create new business opportunities for Penang's manufacturing industry.
One of the key initiatives taken by state investment arm InvestPenang, he noted, is the signing a memorandum of understanding with Beijing's foreign trade and investment promotion agency, the China Chamber of International Commerce (CCOIC) on May 16.
"With the objective to promote bilateral investment and economic and technological cooperation, both parties are committed to establishing regular communication and data interconnection mechanisms for information (investment projects and environment analysis) exchange.
"Other than CCOIC, InvestPenang is working with other Chinese associations to organise future exhibitions and seminars, aiming to bridge local SMEs with Chinese companies for new business opportunities," he told reporters.
Sensing opportunity
The tit-for-tat tariff hikes in the trade and technology disputes between the US and China has created uncertainty in the global economic outlook.
Though the big picture seems negative, Lee said, Penang sees opportunities arising from the trade war for manufacturers, especially in the electric and electronics manufacturing industries.
"Against this backdrop, there are a few initiatives from the state government agencies to aid the workforce," he said.
"For technology startups that require funding to grow their business and operation, they could apply for the state-owned Penang I.40 Seed Fund, which is a state government fund (via InvestPenang) aimed at building and growing a strong pipeline of technology startups to enhance the Penang technology ecosystem."
Subsidised rental scheme
In order to reduce the cost of doing business, Lee also said the Penang Development Corporation (PDC) has a subsidised rental scheme for local companies at the Penang SME Centre in Bayan Lepas.
On top of that, PDC has budgeted RM500 million this year to improve manufacturing infrastructure in the state.
"This presents opportunities for local qualified contractors and vendors to tender for PDC projects.
"PDC also offers a micro-financing option called Skim Pinjaman Harapan (SPH) to assist small businesses and entrepreneurs in Penang," he added.
Lee also encouraged companies which operate within the focus areas of digitalisation, connectivity, green technology and renewable energy to consider funding via the Finance Ministry initiative, Malaysian Debt Ventures (MDV).
He added that MDV, which he chairs, has RM750 million set aside to aid eligible companies this year.
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