Trade war rejuvenates 'Silicon Valley' firms in Malaysia

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Trade war rejuvenates 'Silicon Valley' firms in Malaysia
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Years after resisting pressure to move to China, Lee Hung Lung says his bet has ...

PENANG, Malaysia - Years after resisting pressure to move to China, Lee Hung Lung says his bet has paid off. Sales at his Malaysia-based Hotayi Electronic are surging, it’s hiring more workers, considering an expansion, and picking and choosing orders.

Then came the trade war between the world’s biggest two economies, pushing mostly U.S. companies to look for factories outside China to escape retaliatory tariffs, and leading to Penang’s resurgence after what a fund manager described as “a decade of sleepiness”. The other factor going for Penang is that many semiconductor and other electronics products from Malaysia do not attract U.S. tariffs, unlike the 25% rate for China.

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