PENANG is stepping up efforts to strengthen its position as a green manufacturing hub, with 68 organisations and young innovators recognised for their outstanding contributions to sustainability at the Penang Green Summit 2026 Gala Dinner.
Chief Minister Chow Kon Yeow said the integration of artificial intelligence (AI) and advanced technologies must deliver tangible environmental and economic benefits, particularly for businesses and manufacturers.
“Artificial intelligence is changing how factories run and how businesses compete. But technology alone will not secure a sustainable future.
“What matters is whether it lowers a supplier’s costs, cuts waste on the factory floor and keeps our air and rivers clean,” he said in his keynote address at the Penang Waterfront Convention Centre (PWCC) today.
Chow said Penang’s economy grew by 7.3% in 2025 to RM130.3 billion, with the manufacturing sector contributing RM61.7 billion, or 47.3% of the state’s gross domestic product (GDP).
He added that the manufacturing sector recorded 10% growth, while Penang attracted RM63.96 billion in approved investments last year, including RM22.38 billion in the manufacturing sector, particularly in the electrical and electronics (E&E) industry.
To ensure local small and medium enterprises (SMEs) remain competitive alongside multinational corporations, Chow highlighted the Penang Green Industry Programme (PGIP) and its SHIFT framework, which helps businesses assess their sustainability readiness and identify suitable solutions, partners and financing.
He also pointed to the Penang Climate Mitigation Fund, launched in April 2026 in partnership with Alliance Bank Malaysia, with an initial allocation of RM20 million comprising RM5 million from the state government and RM15 million from the bank.
“Sustainability is not a compliance burden or an extra cost. It is a strategic investment in competitiveness and resilience,” he stressed, urging manufacturers, SMEs and industry partners to make full use of the available initiatives.
Meanwhile, Penang Green Council (PGC) chief executive officer Josephine Tan said the council remained committed to building a cleaner, greener, smarter and more resilient Penang.
She expressed appreciation to Chow for his leadership in incorporating sustainability into the state’s Penang2030 Vision, as well as PGC chairman Datuk Seri Sundarajoo Somu and the council’s board of directors for their continued support.
Referring to the recently announced Penang Budget 2027, themed “Merakyatkan Visi, Menempa Legasi” (Popularising the Vision, Forging a Legacy), Tan said sustainability was essential to safeguarding the state’s future industries and developing its young talents.
“When we speak about sustainability, we are not simply talking about protecting the environment. We are talking about protecting Penang’s future. We are talking about preparing our industries for tomorrow’s challenges. We are talking about creating better opportunities for our businesses, our young talents and our communities,” she said.
Tan also highlighted the proposed Green Tech Park at Silicon Island as an example of Penang’s commitment to developing a sustainable industrial ecosystem.
She said PGC, through PGIP, aimed to position Penang as a leading green manufacturing hub by supporting existing industries and SMEs in their transition towards more sustainable practices.
She also commended her team and the various government agencies, industry associations and community partners for their collective efforts in making the summit a success.
The gala dinner saw a total of 68 awards and certifications presented to organisations and young innovators for their contributions to sustainability.
Of these, 50 recognitions were presented under the Penang Green Office Certification and Penang Green Office Excellence Award, while 14 recipients received the Penang Green Hotel Excellence Award. Another four accolades were presented to young innovators through the AI4Sustainability HackFest.
Both Chow and Tan congratulated the recipients and participants, expressing hope that their achievements would encourage more organisations and individuals to embrace environmentally responsible practices.
The initiative reflects Penang’s broader ambition to build a future where industries remain competitive, communities prosper and future generations inherit a greener and more resilient state.
Among others present during the event were PGC deputy chairman Datuk Lawrence Lim Hua Kwang, Penang Water Supply Corporation (PBAPP) chief executive officer Datuk K. Pathmanathan, Penang Green Summit organising chairwoman Tan Soo Siang, and others.
Story by Kevin Vimal
Pix by Alissala Thian