GEORGE TOWN, Nov 18 — The Malaysia-United States Reciprocal Trade Agreement (ART) is expected to drive Penang’s economic growth especially the electrical and electronics (E&E), agriculture and halal industries, said Penang Chief Minister Chow Kon Yeow.

The Padang Kota assemblyman told the state legislative assembly today that the agreement is expected to create more opportunities for the state’s E&E sector to penetrate the US market.

“It will also potentially attract new foreign direct investments (FDI) and create more high-skilled job opportunities,” he said in response to an oral question by Seberang Jaya assemblyman Izhar Shah Arif Shah on the impact of ART on Penang.

Chow said the implementation of ART is expected to strengthen technical training programmes and enhance the capacity of the local workforce to meet the demands of high-technology industries, thus supporting sustainable economic growth for the state.

“ART is expected to positively impact the agricultural sector for commodities such as natural rubber, palm oil and other food products,” he said.

He said Penang is not a major national producer of these commodities but the state will still benefit from the agreement through the development of innovative agricultural products, value-added processing and entry into more premium agricultural markets.

“In the context of the halal industry, ART is expected to open tariff-free market access for local halal SMEs to the US,” he said.

He said this will enable Penang’s halal SMEs to integrate into high-value global supply chains as strategic partners to US high-technology companies.

“Penang’s halal industry has strong growth potential, especially in ready-to-eat foods and processing sectors,” he said.

He said the state is now reviewing various measures to strengthen the halal ecosystem at the state level such as focusing on strengthening Jakim halal branding, increasing automation and production efficiency and exploring new export markets.

“These approaches are expected to strengthen the halal industry as a strategic sector capable of driving the state’s economic growth in a sustainable and inclusive manner,” he said.

Chow said the state government will continue to strengthen the state’s economic resilience and industrial competitiveness through various initiatives under InvestPenang.

“These efforts reflect the state government’s determination to ensure Penang continues to play a strategic role in the global supply chain, strengthen the sustainability of its economy and, at the same time, deliver direct benefits to the public and local entrepreneurial communities,” he said.