investPenang director Lee Kah Choon says Penang's tech sector is in a position to help supply essential items for US and China firms caught in trade dispute.
GEORGE TOWN: Penang’s investment promotion agency today told local industries to seek out business ties with US and Chinese companies as punitive tariffs in the ongoing trade war could push tech companies to look to Malaysia and other countries in the region to meet supply needs.
US firms stand to lose US$10 billion a year in licensing revenue from chips and components, The Economist had reported.Lee said in the light of the ban on telco companies Huawei and LTE by the US, Chinese telco companies can tap into the Penang market to get their wares, since they are by and large prevented from buying chips from American companies.
He said the trade diversion to Malaysia or Penang meant there would be more outsourcing jobs for local companies, with some likely to have joint venture partnerships. “Or else, the effects of the global economy, resulting from this US-China trade war, is going to be painful.“We feel that the trade war will not affect Penang, but we just need to be ready so as not to become collateral damage as a result of this trade war,” he said at a press conference today.Lee said investPenang, taking cognisance of the trade war, had signed a memorandum with the China Chamber of International Commerce in Shenzen on May 16 to woo more Chinese investors to Penang.
He said to reduce cost of doing business of small and medium enterprises , Penang offers a subsidised rental rate scheme at the Bayan Lepas Industrial Park.
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