PENANG is charting a bold path towards becoming one of Southeast Asia’s leading digital economies as the state government intensifies efforts to strengthen mobility, connectivity and digital infrastructure under its 2030 development agenda.
Chief Minister Chow Kon Yeow said the state is fully committed to driving a comprehensive digital transformation that empowers industries, enhances public services and uplifts the quality of life for all Penangites.
“We are not merely adopting technology, but we are shaping a future-ready Penang where digital innovation becomes the foundation of our economic resilience and community well-being.
“The state continues to upgrade its Geographic Information System (GIS) SMARTPLAN under Penang GeoHub, now comprising 18 modules, including SMART Industry and SMART Penang Bay.
“The upcoming Smart City Blueprint will serve as a refreshed guide for integrated, people-centric smart solutions through 2030.
“Penang has also launched the Penang Industrial Master Plan 2030, reinforcing its position as a premier investment destination and strengthening the industrial value chain,” Chow said while tabling the Penang State Budget 2026 at the State Legislative Assembly Building in Light Street today.
Creative Digital District (CD²) at Gat Lebuh China remains a fast-growing innovation district, now hosting leading institutions such as Wawasan Open University’s (WOU’s) Digital Technology Faculty, Digital Penang, Finexus, Penang Science Cluster, 42 Penang, and Malaysia Digital Economy Corporation (MDEC) (Northern Zone Office).
The district continues to attract digital talents and creative communities, with programmes supporting MSMEs, local startups and technological upskilling.
“CD² is more than an economic catalyst; it is our living ecosystem of ideas, creativity and collaboration.
“It signifies Penang’s determination to nurture homegrown tech companies and future innovators,” Chow said.
Meanwhile, the Digital Economy Master Plan aims to build a connected, creative and competitive society, while positioning Penang as the IC Design Hub of Southeast Asia.
Key targets by 2030 include:
* Increasing Penang’s GDP from RM116B to RM156B
* Raising digital economy contribution to 35% of GDP
* Attracting RM20B in digital investments and RM13B in advanced semiconductor manufacturing
* Creating 50,000 new digital jobs
* Raising household median income to RM7,700
* Reducing energy intensity by 25% and expanding renewable energy use to 10%
The Penang Internet Exchange (PIX) has been established to enhance internet speed and connectivity statewide.
In 2026, Digital Penang will prioritise talent development, software testing certification and cybersecurity strengthening, including PIX-related initiatives costing RM300,000.
The Penang Island City Council (MBPP) will implement 3D heritage building mapping, weather stations and Geotech Lidar technology as part of the State’s integrated smart municipal service strategy.
Since 2023, according to Chow, over RM560,318 has been invested in digital literacy, technological inclusion and community engagement programmes.
“Digital Penang’s Pantau app, used by more than 20,000 people, supports real-time tracking during major festivals. Meanwhile, cybersecurity efforts via MyKADUN continue to expand with over 20,000 users.
“Our digital journey is about inclusivity, ensuring every Penangite, regardless of background, shares the benefits of this transformation,” Chow added.
Story by Kevin Vimal