PENANG is looking beyond its well-established electrical and electronics (E&E) industry by exploring strategic partnerships with North Sumatra to strengthen food security, expand its food manufacturing sector and unlock new cross-border investment opportunities.
The initiative took centre stage during a business matching session held at the Grand City Hall Hotel here today, where state Trade and National Unity Committee chairman Goh Choon Aik met Malaysian and Indonesian industry players to discuss potential collaborations in agriculture, aquaculture, logistics and food processing.
Among those present were Dr Saw Lean Joo, consultant Dr Sayid Fadhil, Iroko Pacific Sdn Bhd managing director Victor Shahidi and NL Group of Companies chairman Datuk Dr Muhamad Farid Saad.
Speaking to Buletin Mutiara after the session, Goh said Penang aims to leverage North Sumatra’s vast agricultural resources while contributing its expertise in technology, food processing and supply chain management.
“We are exploring raw materials from the agriculture and aquaculture sectors to support Penang’s food manufacturing industry.
“To export food products worldwide, certifications such as HACCP, GMP, ISO and Halal are essential, and this is where Penang has the expertise to add value,” he said.
Rather than acquiring land, Goh stressed that Penang companies should focus on introducing modern agricultural technologies and best practices through partnerships with local growers.
“We do not have sufficient land for large-scale agriculture in Penang. North Sumatra and Aceh have extensive land banks, and we see them as strategic partners.
“Our role is to bring technology, improve plantation management, logistics and post-harvest handling before the products are processed into higher-value food products in Penang,” he added.
Goh said Penang’s experience in science, technology and industrial innovation could be applied to modernise the agricultural sector, from cultivation and transportation to processing, packaging and marketing.
He also highlighted the importance of reducing Malaysia’s dependence on imported food.
“The Covid-19 pandemic reminded us that food security cannot be taken for granted. About 70 per cent of our food is imported, and we need to diversify and strengthen our supply chain.
“This collaboration can help secure a more reliable source of raw materials while creating greater value through food manufacturing,” he said.
Apart from agriculture, Goh said logistics and maritime connectivity would play a pivotal role in realising the proposed collaboration.
Upon returning to Penang, he plans to organise a briefing with agricultural experts and potential investors to explore opportunities in agricultural technology and contract farming models.
He also intends to engage Penang Port to discuss how it can facilitate the importation of agricultural raw materials from North Sumatra.
“We must also strengthen the logistics ecosystem. Penang Port has been supporting our thriving E&E sector, but we also want to explore its potential in handling agricultural raw materials from North Sumatra.
“This is an important step towards enhancing Penang’s long-term food security while creating new economic opportunities,” Goh said.
The business matching session formed part of Penang’s ongoing efforts to deepen economic cooperation with North Sumatra, paving the way for stronger partnerships in sustainable agriculture, food production and regional trade.
Story by Kevin Vimal
Pix by Siew Chia En