PENANG must remain proactive and resilient in the face of prolonged geopolitical tensions affecting global energy markets and supply chains, while continuing to strengthen its digital economy, infrastructure, talent ecosystem and social inclusivity, said the Yang di-Pertua Negeri of Penang, Tun Ramli Ngah Talib.
Delivering his address at the State Assembly Building in Lebuh Light, Tun Ramli warned that ongoing tensions in strategic regions, particularly in West Asia, have triggered ripple effects on global market stability.
He noted that Malaysia, as an open economy, is not immune to these developments, highlighting the country’s dependence on the region for about 61% of oil imports, 30% of LNG imports and nearly 40% of crude oil flows through the Strait of Hormuz, as well as critical materials such as fertiliser, helium and sulphur.
Despite these challenges, he stressed that Malaysia’s economic fundamentals remain strong, with gross domestic product (GDP) growth in 2026 projected at between 4.0% and 5.0% and inflation expected to remain moderate at 1.5 to 2.5%.
“I am confident the Federal Government will continue to monitor developments wisely and take the necessary steps to safeguard the people’s welfare, ensure essential supplies and sustain economic growth,” he said.
Tun Ramli stressed that Penang must not remain a passive observer amid global uncertainty, urging the state to act proactively to strengthen internal capacity and resilience through energy efficiency, food security and disciplined fiscal management.
He also called on all the assemblymen to prioritise fact-based and constructive discourse, cautioning that statements that are speculative or not grounded in facts would only create unnecessary anxiety among the rakyat.
Highlighting the state’s economic performance, Tun Ramli said Penang recorded RM63.96 billion in approved investments in 2025, with manufacturing contributing RM22.38 billion led by the electrical and electronics industry, while the services sector contributed RM41.22 billion, particularly from the ICT segment.
Domestic investments totalled RM38.85 billion while foreign investments reached RM25.10 billion, reflecting strong confidence from both local and international investors.
Penang also achieved robust trade performance, recording RM956.37 billion in total trade in 2025, a 17.9% increase year-on-year.
Exports reached RM573.91 billion and imports RM382.46 billion, enabling the state to maintain its position as a major contributor to Malaysia’s exports at 35.7%.
He described these achievements as proof of the strength and competitiveness of Penang’s investment ecosystem.
Tun Ramli also emphasised that the digital economy is set to become a major growth driver for the state.
Through the Digital Economy Master Plan 2025–2030, Penang aims for the digital economy to contribute 35% to state GDP by 2030, attract RM20 billion in digital investments and create 50,000 high-skilled jobs.
Startup growth has also been encouraging, with RM23 million in funding secured between 2023 and early 2026 and 300 startups registered by 2025, reaching around 60% of the Penang2030 target.
More than 3,300 small and medium enterprises (SMEs) benefited from digitalisation initiatives in 2025, while the DahDigital programme enhanced digital literacy among more than 3,300 participants through 140 classes statewide. He said these efforts would further strengthen Penang’s position as a regional hub for advanced technology and digital innovation.
Tun Ramli stressed that talent development must begin from the grassroots, particularly in science and technology education. Programmes led by Tech Dome Penang, Penang Science Cluster and Penang STEM 4.0 recorded over 303,000 student participations between 2023 and 2025, reflecting long-term investment in building future talent.
The Penang Global Business Services Industry Academy has trained more than 1,000 skilled workers since 2022, while Penang GBS Industry Academy (PGIA 2.0), launched in 2025, focuses on generative AI talent development and aims to produce 500 specialists by 2026.
He said these initiatives demonstrate the state’s commitment to building a comprehensive talent ecosystem from foundational STEM education to advanced technology training.
Turning to infrastructure, Tun Ramli described the Penang LRT Mutiara Line project as a major transformation for Penang’s transportation landscape that is expected to reduce travel time by 30% and increase public transport usage to at least 40%.
He also welcomed key infrastructure developments including the Juru–Sungai Dua and Air Itam bypass highways, the expansion of Penang International Airport and transit-oriented development in Sungai Nibong, noting that these projects would enhance connectivity, stimulate investment growth, boost tourism and create more job opportunities.
Ten priority projects worth RM2.21 billion have also been proposed under the Second Rolling Plan of the 13th Malaysia Plan.
He highlighted significant progress in water governance following the gazetting of the Penang Water Resources Board Enactment 2025 and the Penang Water Resources Enactment 2025.
Tun Ramli welcomed the memorandum of understanding between the Penang Water Supply Corporation (PBAPP) and the PKNPK-Gamuda consortium to supply treated water from Sungai Perak, describing it as a strategic move to secure long-term water sustainability and reliability for the state.
Tourism recovery continues to gain momentum, with passenger movements at Penang International Airport reaching 8.31 million in 2025, up from 7.47 million the previous year.
Tun Ramli said tourism growth has been strengthened by heritage and cultural initiatives, including the Guar Kepah Archaeological Heritage Gallery and the Penang State Automotive Gallery.
He also noted that Penang has been listed by CNN Travel and The New York Times as one of the world’s top destinations for 2026, reflecting continued global confidence in the state as a stable and competitive destination.
On environmental sustainability, Tun Ramli said Penang has maintained a strict conservation approach since 1972 with no logging activities, focusing instead on sustainable forest management.
Efforts are underway to recognise key forest reserves as part of the East Asian–Australasian Flyway, potentially making Penang the first Flyway Site Network in Peninsular Malaysia. He also highlighted strong progress in women empowerment, noting the appointment of 580 women to Women and Family Development Committees, entrepreneurship programmes that helped 435 participants achieve income increases of 30%, and the #BizIbuTunggal initiative that generated over RM144,000 in revenue for 127 single mothers.
Efforts to combat cyber sexual violence and advance gender-responsive budgeting were also commended.
The Yang di-Pertua Negeri said the state is intensifying efforts to strengthen food security through technology-driven agriculture, with RM6.37 million allocated in 2026 for 16 agri-food development projects.
In 2025 alone, 530 agro-entrepreneurs produced 28.65 million kilograms of food and generated RM135.64 million in sales. Despite land constraints, Penang continues to leverage IoT, fertigation, mechanisation and urban farming to sustain agricultural productivity.
Closing his address, Tun Ramli reiterated the need for unity and forward-looking governance, stressing that Penang must continue implementing development agendas strategically and prudently to ensure long-term competitiveness and prosperity for future generations.
Earlier this morning, Tun Ramli inspected the guard-of-honour to mark the opening of the State Legislative Assembly Sitting, which is set to convene next week after it was deferred at about 11.05am today.
Among other state leaders that were present during the opening address were Chief Minister Chow Kon Yeow, State Speaker Datuk Seri Law Choo Kiang, Deputy Chief Minister II Jagdeep Singh Deo, and others.
Story by Kevin Vimal
Pix by Alissala Thian & Siew Chia En
Video by Darwina Mohd Daud & Law Suun Ting