PENANG has established itself as a key player in the regional and global high-tech and automation ecosystem, says Deputy Chief Minister II Jagdeep Singh Deo.
Speaking at the opening of “Silicon Minds: Automating the Intelligent Era” organised by Beckhoff Automation Malaysia, Jagdeep said the state’s strong manufacturing base, innovation capacity and comprehensive supply chain network have positioned Penang at the forefront of technological transformation.
“The convergence of automation and artificial intelligence is driving industrial change and smart manufacturing. Penang is adapting swiftly to lead this transformation, making it one of the region’s most competitive smart manufacturing hubs,” he said.
He noted that Penang is home to nearly 500 multinational corporations (MNCs) and more than 7,000 small and medium enterprises (SMEs), forming a complementary ecosystem covering semiconductors, electronics, equipment manufacturing and automation.
“Although Penang is Malaysia’s second smallest state, it has the highest concentration of MNCs and SMEs,” he added.
Citing Malaysian Investment Development Authority (Mida) data, Jagdeep said Penang recorded RM12.5 billion in manufacturing investments last year, which was a 150% increase year-on-year, contributing nearly 30% of Malaysia’s total foreign direct investment (FDI).
He said Penang contributes around 8% of the world’s semiconductor output, with “Made in Penang” components found in major global brands, including Apple, Intel and Dell.
The state government, he added, is steering efforts towards Industry 5.0 and Smart City development, focusing on digitalisation, green manufacturing and talent growth to ensure Penang remains ahead in the global technology landscape.
“Automation and intelligence are not just the future of industry, but they are key to Penang’s journey towards a high-value economy,” he said.
He added that Penang continues to strengthen industrial collaborations with countries such as Germany, India, China and Japan to attract more international investors.
“The participation of global players such as Beckhoff Automation further enhances Penang’s innovation ecosystem and cements its status as the ‘Silicon Valley of the East’,” he explained.
Also present at the event were Beckhoff Automation Sdn Bhd managing director Daniel Tay, Northern Region branch manager Steve Hoo, and Beckhoff Automation Germany Semiconductor Industry manager Marcel Ellwart.
They were joined by Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai, and Malaysian-German Chamber of Commerce and Industry deputy executive director Tara Méité.
Story by Edmund Lee
Pix by Darwina Mohd Daud