A STRONG logistics network is necessary to spur the growth of investments in the state.
Chief Minister Chow Kon Yeow said the logistics providers in Penang not only supported local factories but also served the regional market, acting as international procurement or regional distribution centres.
“In 2017, Penang recorded the highest approved manufacturing foreign direct investments among the states in Malaysia valued at RM8.5bil.
“Domestic manufacturing investment also grew to reach RM2.3bil.
“For the first three months of 2018, we achieved RM580mil in foreign direct investment and RM438mil in domestic investment, bringing our total investment in quarter one to RM1.1bil.
“It is, therefore, crucial to have a strong logistics network to support this growth.”
He was speaking at the launch of the Integrated Cold Chain Logistics (ICCL) Sdn Bhd Phase 5 project at Bukit Minyak Industrial Park. Also present was Finance Minister Lim Guan Eng.
According to Chow, in recent years, through strategic collaborations both at Federal and state level, the state had been grooming Penang as a logistics hub and a dynamic import/export gateway for the northern region.
High-impact projects such as the Penang International Airport planned expansion, the ongoing construction of the Penang Sentral Integrated Transport Hub and the Penang Port upgrading exercise will enhance Penang’s position, Chow added.
“The global cold chain market itself is huge, estimated at US$10bil, and is expected to reach US$272bil by 2020.
“In Malaysia, the cold chain industry is valued at RM60bil.
“This is contributed largely by modern retailers. In 2015, 47% of them outsourced their cold chain logistics,” he said.
Meanwhile, Lim said the trade value in the transport sector in 2017 was RM68.2bil, up 19.4% from 2016, due to the growth of external trade between Malaysia and the world.
“Some industries in Asean show a lot of promise including the marine market and the refrigerated storage market.”
Photo Credit: The Star