For Immediate Release
2019 Approved Manufacturing Investments Hit Record High of RM16.9 Billion
Penang attracted RM16.9 billion of total approved manufacturing investments in 2019, up 192% year-on-year and hit a record high. Despite the current pandemic, Penang is versatile enough to navigate the uncertainties. The State government has and will continue working closely with all stakeholders towards the strategies outlined for Penang Next Normal.
Penang, April 22, 2020 – Penang’s approved manufacturing investments hit a record high, with strong inflows of both new and re-investments into the State. Despite the challenging global economic backdrop, Penang recorded RM16.9 billion in total approved manufacturing investments in 2019, up 192% year-on-year and more than double its 10-year average of RM8.0 billion (2010-2019). The total RM16.9 billion accounted for 20% of Malaysia’s total manufacturing investments.
According to MIDA, Penang successfully garnered 166 manufacturing projects in 2019, which is estimated to create 18,886 new job opportunities in Penang.
Out of the RM16.9 billion manufacturing investments into the state, foreign direct investments (FDI) accounted for RM15 billion or 89% of the total investment inflows, while the remaining RM1.9 billion or 11% were domestic direct investments (DDI). The RM15 billion FDI is an impressive increase of 306% year-on-year and accounted for 28% of the country’s total manufacturing FDI, making Penang the country’s top FDI destination.
Top manufacturing FDI were from United States, Singapore, and United Kingdom. Remarkable investments in Penang included projects from Intel Technology, Jabil Circuit, Lam Research, Micron Technology, Smith+Nephew, among others.
The Electronics & Electrical Products, Scientific & Measuring Equipment, and Machinery & Equipment industries collectively accounted for 87% of Penang’s total approved manufacturing investments in 2019. This is reflective of Penang industrial profile, and strengths of our well-established ecosystem.
In a press announcement today, Right Honorable Chow Kon Yeow, the Chief Minister of Penang, said: “The record high performance in manufacturing investments signify investors’ strong confidence in Penang. The State government would like to express the deepest appreciation to all the investors who have opted to invest and expand here. The State records its appreciation to MIDA, MITI and MOF for approving the investments and looks forward to partnering the Federal government to ensure successful implementation of the projects.”
Bracing for the future
Due to the Covid-19 pandemic, 2020 global investment outlook is much more uncertain, with studies and surveys showing global FDI decreasing within the range of 30%-40% in 2020-2021. Penang will not be spared from this global trend in 2020, however, to mitigate this, the State government has positioned itself to seize opportunities arising post pandemic.
The Penang State government has recently outlined strategies for Penang Next Normal, to ensure that the State evolves according to the global megatrends and to remain a conducive, desirable and sustainable destination to “work, live, play and invest”.
“The State will continue to work closely with all stakeholders to implement Penang Next Normal. The State government, InvestPenang and Penang Development Corporation are vigilant and will continuously have our ears on the ground,” Chow added.
It is important to highlight that Penang is committed to assist investors in catching up on the progress of all approved manufacturing investment projects so that the impacts of high-quality jobs are felt on the ground. The Right Honorable Chief Minister has also directed InvestPenang, Penang Development Corporation and all other relevant agencies to work hard in implementing and materializing all the investment projects.
InvestPenang is the Penang State Government’s principal agency for promotion of investment. Its objectives are to develop and sustain Penang’s economy by enhancing and continuously injecting business activities in the State through foreign and local investments including the spawning of viable new growth centres. To support the realization of its objectives, InvestPenang also runs initiatives like SMART Centre (to assist SMEs), Penang CAT Centre (to assist talents) and @CAT Penang (to assist start-ups).
Learn more about InvestPenang at our website: www.investpenang.gov.my