Penang garnered approved manufacturing investments of RM3.5 billion in 4Q20, bringing cumulative inflows to RM14.1 billion for 2020. Despite the many uncertainties in place, 2020’s investment achievement was the second highest in the history, reflecting investors’ continued confidence in Penang as a sustainable investment location.
Penang, March 4, 2021 – Underpinned by both new and re-investments into the State, Penang clocked up RM3.5 billion in approved manufacturing investments in the fourth quarter of 2020 (4Q20). According to data from the Malaysian Investment Development Authority (MIDA), the investment inflows in 4Q20 involved 58 projects, which, together with projects approved in 9M20, are expected to generate 13,268 new job opportunities in the State.
In 4Q20, domestic direct investments (DDI) continued to grow on strength. For its third consecutive quarter-on-quarter growth, DDI increased 198% year-on-year to RM1.8 billion in 4Q20, representing 51% of the State’s manufacturing investment inflows. Meanwhile, the remaining 49% or RM1.7 billion came from foreign direct investments (FDI).
4Q20’s inflows brought the total approved manufacturing investments for the whole of 2020 to RM14.1 billion, which was only short of 2019’s historical high of RM16.9 billion. In 2020, FDI accounted for 75% of approved manufacturing investments or RM10.6 billion (yoy: -30%), making Penang the third highest manufacturing FDI recipient in Malaysia, capturing 19% of the country’s said total FDI during the period. Remarkable 2020 FDI investments in Penang included projects from DexCom Inc, Ultra Clean Holdings, Bruker Malaysia, amongst others.
On the other hand, DDI in Penang jumped 92% year-on-year to RM3.6 billion, a testament to the State’s robust industrial ecosystem as a platform in which local players can participate and thrive.
Total approved manufacturing investments in Penang were primarily related to the State’s key promoted industries, i.e. the Electronics & Electrical, Machinery & Equipment, Scientific & Measuring Equipment (including medical devices) industries. Cumulatively, investments into these sectors accounted for 89% of Penang’s total approved manufacturing investments in 2020, which in turn, accounted for 50% of Malaysia’s investments in these three sectors. This demonstrated Penang’s instrumental role in driving Malaysia’s participation in the global supply chain in these areas.
The disruptions to international travel and domestic movement restrictions caused by the COVID-19 pandemic invariably created challenges for investors to conduct feasibility studies, site visits as well as project implementation at the ground level. The State government is grateful to achieve such a commendable investment performance despite a challenging year. Investors’ continuous trusts in Penang indicate that the State’s strong fundamentals and versatile ecosystem have the capacity and capability to support the needs of industries’ next-generation technologies, products and long-term growth strategies.
The Chief Minister of Penang, Right Honorable Mr. Chow Kon Yeow said: “The Penang State government would like to express our deepest appreciation to the investors for their confidence in Penang, as well as to MIDA for a conducive and fruitful collaboration with InvestPenang in attracting strategic investments into the State.”
“To ensure Penang remains as a destination of choice for high-quality investments, the State government will continue focusing on upholding Penang’s competitive edge in advanced manufacturing, further strengthening Penang’s industry clusters and embarking on a massive drive to attract talents into the State.” Chow added.
Looking ahead, the successful roll out of the COVID-19 vaccination programme will be a key factor for us to return to pre-pandemic strength. However, for now, it is critical that we, as a nation, continue to stay vigilant in adhering to COVID-19-related SOPs. Together, we can put our economy on track for a speedy and sustainable recovery.
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 Penang i4.0 Seed Fund (to elevate start-up ecosystem).
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Yeoh Bit Kun/ Ooi Phei Wen