PENANG held discussions with 16 strategic investors during Chief Minister Chow Kon Yeow’s recent investment and trade mission to the United States, aimed at strengthening existing ties and attracting new investments to the state.
Chow (PH-Padang Kota) said the meetings, held in San Jose on Sept 28, involved leading technology companies from the semiconductor, IC design and advanced packaging sectors, including AMD, Coherent, Agilent, Cadence, Lam Research, Intel, Altera, SanDisk, Micron and Applied Materials.
He said the discussions focused on growth opportunities driven by the global artificial intelligence (AI) boom, with companies indicating stronger demand and encouraging growth prospects.
“The Penang delegation also highlighted two strategic initiatives – Penang Silicon Design @ 5km+ and the Malaysia Automated Test Equipment (ATE) Campus – to strengthen the state’s capabilities in product development, manufacturing and advanced testing,” he said during the question-and-answer session with Muhammad Fauzi Yusoff (PN-Sungai Dua) at the State Legislative Assembly today.
On whether the mission was specifically aimed at attracting investments to Penang Silicon Island, Chow said it was not the main focus, as the island’s development would take more time.
Instead, he said the delegation highlighted Penang’s current and future readiness in terms of industrial land, electricity and water supply, infrastructure, traffic management and workforce to convince investors that the state was ready to support their operations.
He said the aim was to ensure that when companies expressed interest in investing, Penang already had the necessary ecosystem and supply chain to support their operations.
On industrial land availability, Chow said almost all plots in Batu Kawan Industrial Park (BKIP) Phase 1 had been transacted, while nearly 75% of the 300 acres at Bandar Cassia Tech Park had also been taken up.
He added that development was underway at BKIP Phase 3 along Jalan Bukit Tambun, which covers about 400 acres, with at least 300 acres still available.
Chow said the Penang Development Corporation (PDC) had decided to develop more than 1,000 acres of industrial land in Byram under BKIP Phase 2 in stages.
Responding to concerns over PDC’s ability to develop industrial parks, he said the agency had 53 years of experience in developing industrial estates, including those in Prai, Mak Mandin, Bukit Tengah, Bukit Minyak and Batu Kawan.
He said the state government also encouraged private developers to provide industrial land and supporting infrastructure to meet investors’ needs.
Among the private developments was an 800-acre industrial site in Bertam, where an estimated 70% to 80% of the land had been transacted.
He added that more than 500 acres in a development in Tasik Gelugor had also been approved for rezoning for industrial purposes.
On the expected investments from the US mission, Chow said it was too early to provide an accurate estimate as foreign investment decisions typically took several years, from initial discussions and site selection to negotiations and final decisions.
Nevertheless, he said the discussions and feedback received would help Penang strengthen its industrial ecosystem, adapt to the changing needs of global companies and build a more resilient and competitive investment environment.
On factory closures and job losses, Chow said 1,755 local workers in Penang’s manufacturing sector were recorded as undergoing career transitions between January and Oct 9 this year.
Of these, 372 workers, or 21.2%, were affected by business or departmental closures, involving 48 employers in the manufacturing sector, based on Social Security Organisation (Socso) Employment Insurance System records.
Story by Edmund Lee