PENANG is ready to strengthen cooperation with France across high-value industries, the digital economy, and cultural exchanges following a courtesy call by French Ambassador to Malaysia, His Excellency Marc Abensour, in Komtar today.
Chief Minister Chow Kon Yeow said Penang welcomed stronger bilateral collaboration as Malaysia continues to position itself as a neutral and stable investment destination amid global uncertainties.
“First of all, thank you very much, Excellency, for making a special trip to Penang to explore collaboration,” Chow said, adding that Malaysia’s diplomatic engagement under Prime Minister Datuk Seri Anwar Ibrahim has helped strengthen ties with many countries.
“We all understand that Malaysia is a neutral country and during this particular juncture, this effort must continue to ensure that the impact from wars would not kill our economy and our people’s livelihood,” he added.
Chow acknowledged that global conflicts may bring short-term challenges but said Penang remains optimistic about its economic outlook.
“From initial feedback, definitely there will be an impact, but our assessment is still probably in the region of 10 per cent to 15 per cent cost increase, delayed decisions on certain investments and logistics disruption. However, InvestPenang is still very optimistic about the investment climate here in Malaysia and Penang in particular,” he said.
He added that shifting global supply chains continue to benefit Southeast Asia.
“The momentum continues because of the tariff war and the China Plus One policy. Southeast Asia has benefited, and even now, there is a China-Taiwan Plus One as well. We are still very positive about the outlook for our economy despite concerns over the impact of the war,” he emphasised.
Chow stressed that Penang remains focused on strengthening its semiconductor and electrical and electronics (E&E) ecosystem while nurturing local companies to grow alongside multinational corporations.
“We feel that much more can be done to elevate our local companies as we support MNCs. Our local companies cannot just stay supplying to MNCs without growing themselves; they must become world champions as well,” he said.
He noted that the state aspires to produce at least 10 local semiconductor companies achieving US$1 billion revenue as part of the National Semiconductor Strategy (NSS).
Chow also welcomed broader collaboration beyond manufacturing, including the creative economy and cultural exchange.
“Not only in manufacturing, but also in the creative economy, arts and culture, the softer part, the soft power activities, we welcome that collaboration,” he further said.
Earlier, Abensour said France is keen to expand its presence in Penang and deepen cooperation in strategic sectors.
“We do not want to be squeezed in the strategic competition of the big players. We have a shared commitment to bilateralism and a rules-based order, and we want to strengthen what we call strategic autonomy,” he said.
He described the France–Malaysia relationship as a “sovereignty partnership” aimed at building resilience and reducing dependency.
“This is why the French President and the Malaysian Prime Minister have laid out a roadmap in areas such as security and defence, energy transition, new technologies, digital economy and healthcare,” he said.
Abensour noted the existing French corporate presence in Penang, including Capgemini, Decathlon, CMA CGM and Teleperformance, but believes there is strong potential to do more.
“My sense after just two days here is that we could do much better. I would be very interested to get your views on the sectors where France should concentrate its efforts to increase its presence in Penang,” he said.
He highlighted semiconductors, blue economy initiatives and research collaboration as key opportunities.
“France has developed strong competencies in the blue economy. We face the same challenges as Penang in terms of sea level rise, coral reef preservation and mangrove protection. We can collaborate much more,” he added.
Abensour also emphasised stronger academic, research and innovation links between French institutions and Penang, including cooperation in semiconductors, blue economy and strategic minerals.
“We will work to build a continuum between higher education, research, enterprises and startups. We think we can do much more to structure this collaboration,” he added.
Also present earlier were Abensour’s first secretary and political counsellor, Benoit Hiberty, economic counsellor Michel Cywinski, counsellor for cooperation and cultural affairs, Thierry d’Anna, and attaché for French language, Dominique Husken-Ulbricht.
Story by Kevin Vimal
Pix by Alissala Thian