PENANG has emerged as Malaysia’s top contributor of approved manufacturing investments in the first half of this year, recording RM17.3 billion, or 34% of the country’s total.
Chief Minister Chow Kon Yeow said the data released by the Malaysian Investment Development Authority (Mida) last week reflected Penang’s consistent ranking among the top three to five contributors nationally over the years.
“Sometimes we should not let ourselves be too quiet. Sometimes we need to show that we are still doing very well – not to be complacent, but to be confident and work harder,” he said.
“The ecosystem and supply chain is so big, and with this statistic, I hope we will encourage other companies and SMEs to seize the opportunities and leverage on the new investments,” he said.
The RM17.3 billion recorded from January to June represented a 38% increase from the corresponding period last year.
Of the total, RM12.8 billion, or 74%, came from foreign direct investment (FDI), making Penang the country’s top contributor of manufacturing FDI and accounting for 39% of Malaysia’s total manufacturing FDI during the period.
Hong Kong, Singapore, China and the United States were among the top investors, collectively contributing 77% of Penang’s approved manufacturing FDI.
On the domestic front, Penang recorded RM4.5 billion in approved manufacturing domestic direct investment (DDI), a 125% increase year-on-year.
He also cautioned that the impact of newly approved investments would not necessarily be seen immediately, as the current figures were largely the result of investment decisions and efforts made over the past two or three years.
“What we are witnessing now are the efforts of two or three previous years – both new investments and expansion of existing companies,” he said.
Investment activities were largely concentrated on Penang’s promoted Electrical and Electronics (E&E) and Machinery and Equipment (M&E) sectors, which collectively accounted for 88% of the state’s total approved manufacturing investments.
Expansion projects made up RM11.9 billion, or 69% of the total, while new projects accounted for RM5.4 billion, or 31%.
The approved investments involve 177 projects and are expected to create 19,337 new job opportunities.
Chow said Penang remains optimistic about the continued growth of artificial intelligence (AI), which he believes will generate further investment opportunities for the region, including Malaysia and Penang.
“Moving forward, our industrial strategy is centred on three key priorities – to continue attracting strategic investments and technologies that complement and strengthen Penang’s established ecosystem; to enable local companies’ active participation in the global value chain through encouraging localisation by MNCs; and to develop an AI-ready ecosystem and talent to drive innovation and competitiveness.”
Chow also extended the state government’s appreciation to all investors for their continued trust and confidence in Penang, while thanking Mida, InvestPenang, Penang Development Corporation (PDC) and other federal and state agencies for their continued collaboration in creating a conducive business environment and facilitating strategic investments.
Meanwhile, InvestPenang chief executive officer Datuk Seri Loo Lee Lian said the state remains confident of exceeding last year’s RM22.4 billion in approved manufacturing investments.
“We have a few more projects and are optimistic of surpassing last year’s RM22.4 billion,” she said.
Also present at the press conference were State Secretary Datuk Dr Jafri Abdul Jalil, state Tourism and Creative Economy Committee chairman Wong Hon Wai and Youth, Sports and Health Committee chairman Daniel Gooi Zi Sen.
Story by K.H. Ong
Pix by Alissala Thian
Video by Noor Siti Nabilah Noorazis