GEORGE TOWN: Local manufacturers should explore opportunities arising from the ongoing trade dispute between United States and China or risk becoming collateral damage, said Penang’s investment agency today.
InvestPenang director Datuk Seri Lee Kah Choon said there was plenty of opportunities for local industries, especially in electric and electronics manufacturing, as the imposition of tariffs would see many American and Chinese investors looking to Malaysia for alternatives.
Citing the latest US ban on telecommunication companies Huawei and ZTE, as examples, Lee said Penang would be the perfect place for the affected companies to look for supply of mobile phone components.
He said this was because Penang industries was already manufacturing many component or chips for smartphone manufacturers.
“These companies should upscale, diversify and digitalise to meet new American and Chinese demands.
“Only then will Penang thrive in the wake of the trade dispute and avoid becoming collateral damage.”
He said Penang had adopted a multi-pronged approach to minimise the impact of the protracted trade dispute.
“One of the key initiatives taken by state investment arm InvestPenang, is the signing a of 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 said initiatives implemented by state government agencies included 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.
“In order to reduce the cost of doing business, Penang Development Corporation (PDC) also 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.”
He said PDC also offered a micro-financing option called Skim Pinjaman Harapan to help small businesses and entrepreneurs in Penang.
Lee also encouraged companies that 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 said MDV, which he chaired, had RM750 million set aside to aid eligible companies this year.