Chow urges broader economic focus


Traits of the trade: Chow (left) and Mak during the fireside chat titled ‘Penang as a Gateway for High-Tech Exports: Unlocking US Market Opportunities’ at St Giles Wembley in George Town, Penang. — CHAN BOON KAI/The Star

GEORGE TOWN: Penang should not depend only on the electrical and electronic (E&E) and semiconductor sectors as its primary ‘blue ocean’.

Penang Chief Minister Chow Kon Yeow said the US-China strategic rivalry could impair the state’s economy.

“Penang’s halal industry is a promising avenue, as the Muslims represent nearly 40% of the Asean population.

“Malaysia has built up its halal industry infrastructure, reaching a pole position among halal economies in regulatory and product development aspects.

“Halal food exports in global markets are expected to reach US$3 trillion (approximately RM13.3 trillion) by 2027, from US$2 trillion in 2021, according to a report by Business Wire.

“Malaysia’s halal exports will reach RM65bil by this year, up from RM54bil in 2023, according to Malaysia External Trade Development Corporation (Matrade) in 2024,” Chow said.

He spoke at a fireside chat titled ‘Penang as a Gateway for High-Tech Exports: Unlocking US Market Opportunities’ under the Global Navigator Series (GNS), which is an educational platform under the Export Excellence Awards (EEA), designed to empower Malaysian exporters with insights and strategies to succeed in key international markets.

Standard Chartered Malaysia chief executive officer Mak Joon Nien moderated the talk.

Major halal food product segments include meat, poultry and processed seafood, processed fruits and vegetables, dairy products, cereal and grains, oil and fats, and confectionery.

Asia Pacific leads markets with strong demand for halal products, followed by the Middle East, Africa, Europe, North America and Latin America.

According to Chow, since 2008, Penang Halal International (PHI) has been tasked with promoting and developing Penang’s halal business ecosystem.

“Penang has seen a promising halal market in recent decades. About 62% of Malaysian halal certification or Sijil Pengesahan Halal Malaysia (SPHM) holders in Penang are non-Muslim companies, including non-Bumiputera and foreign-owned entities.

“Meanwhile, 38% are Muslim (Bumiputera) companies.

“SPHM holders in Penang also increased annually, from 55 companies in 2008 to 1,935 companies as of last year.

“These companies involve food, consumables, business premises, hotels, slaughterhouses, cosmetics, and logistics.

“More restauranteurs, business owners and food producers are slowly taking the option of being Muslim-friendly before transitioning to halal certification.

“For example, several Chinese restaurants offer Muslim-friendly foods and beverages, most of which abide by Muslim cooking procedures,” Chow said.

Chow added that the state government aims to establish Penang as a global hub for integrated circuit (IC) design and innovation, fostering a dynamic ecosystem supporting the development of advanced semiconductor technologies.

“The PSD @5km+ initiative offers a unique value proposition, benchmarking itself to IC design hubs in Silicon Valley in San Jose, the US, and Taiwan.

“This initiative aims to attract key industry players and empower and support local companies by providing them with the necessary resources, infrastructure, and opportunities to grow and innovate, cultivate a skilled workforce, and create a thriving innovation ecosystem.

“As a result, Penang will be positioned as a leader in semiconductor design and digital technologies,” he said.

Meanwhile, Standard Chartered Singapore economist and FX analyst Jonathan Koh spoke on ‘US and Malaysia Macroeconomics Outlook 2025’.

The panel discussion was on ‘Sustaining Success: Evolving Strategies for Long-Term US Market Growth’. The panellists were Malaysia External Trade Development Corp (Matrade) deputy director for electrical and electronics, ICT, machinery and equipment section, Siti Azlina; Standard Chartered Malaysia’s regional head for SME Banking in North and East Malaysia, Tan Wan Yean; Transcargo Worldwide (M) Sdn Bhd director Ong Chin Keong, and US-Asean Business Council, Inc. chief representative for Malaysia, Tina Jamaluddin. Malaysia Semiconductor Industry Association director Andrew Chan moderated the panel discussion.

The event concluded with a presentation by Nurdiana Abdullah, deputy director of the market development unit at Matrade’s transformation and digital trade division.

The EEA 2024 is organised by Star Media Group in partnership with Standard Chartered Malaysia, and PKT Logistics Group as a co-sponsor, and Matrade as patron. It is audited by BDO.

Submissions for the Awards programme are also open from now until Feb 13, 2025.

For more information on EEA 2024, go to exportawards.com.my or email eea@thestar.com.my

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