Positive and negative effects on Penang

BUTTERWORTH: The spread of the novel coronavirus has brought about negative as well as positive outcomes for Penang.

While tourism figures are down between 30% and 40% despite the launch of the “Experience Penang 2020” campaign, a logistics company has informed the state that many of the distribution lines from China have been rerouted through Penang and other ports in Malaysia due to the outbreak that has disrupted cargo movement.

“One the one hand, we are concerned to see what is transpiring but there is a positive note.

“Nonetheless, we are seeking feedback from various sectors to determine the disruption the virus has caused to the economy,” Chief Minister Chow Kon Yeow said after opening the new Dialight Penang plant in Prai.

He added there is no denying that Malaysia would be affected by the outbreak in China, which is the world’s second largest economy.

It was reported that bilateral trade between Malaysia and China rose to US$124 billion (RM514 billion) for last year, a 14.2% increase compared to 2018.

China remains Malaysia’s top trading partner followed by Singapore and the United States.

Chow said in the shortterm, tourism in Penang has been affected as tour groups from China have cancelled their holidays due to the travel restrictions imposed.

He said Penang is awaiting for a proposed economic stimulus package by the Finance Ministry in view of the ill effects from the outbreak.