Penang attracted RM13.3 billion of total approved manufacturing investment in Jan-Sep 2019, up 247% year-on-year and has surpassed 2018’s full year amount of RM5.8 billion. Penang contributed 23% of Malaysia’s total manufacturing investment in Jan-Sep 2019, which is the second highest among the states.
Penang, December 3, 2019 – Penang continues to record robust approved manufacturing investment inflows, and remained a favourable investment destination. According to MIDA, in Jan to Sep 2019 (9M2019), Penang successfully garnered 113 manufacturing projects amounting to RM13.3billion (+247% year-on-year), representing 23% of Malaysia’s total approved manufacturing investment. Penang’s achievement of RM13.3 billion in 9M2019 was 100% above its 10-year annual average of RM6.6 billion and it has already surpassed (more than double) 2018’s full year investment amount of RM5.8 billion. In addition, 9M2019’s total approved manufacturing investments are expected to create 15,013 new job opportunities in Penang.
Notably, Penang state is one of the key contributors to Malaysia’s foreign direct investment (FDI). In 9M2019, Penang attracted RM12.0 billion of manufacturing FDI (+445% year-on-year), representing 31% of Malaysia’s total manufacturing FDI. Top FDI were from United States, Singapore, and United Kingdom. Remarkable investments in Penang included projects from Micron Technology, Jabil Circuit, Smith+Nephew among others.
In a press conference today, the Right Honorable Chow Kon Yeow, the Chief Minister of Penang, said that: “The Jan- Sep 2019 approved manufacturing results of RM13.3 billion has surpassed the full-year target of RM10 billion, which was announced earlier this year. The optimal combinations of well-established ecosystem, strong talent pool, good infrastructure, accumulated experience in industrialization, and the State’s strong support services to investors makes Penang a preferred destination for investments”. Chow shared that Penang continues to strengthen its position as a destination of choice for investors, despite rising global macroeconomic uncertainties, including the prevailing US-China trade war which has taken place for about 18 months. Penang is still in the radar of investors as corporates strategise to diversify their manufacturing geographical footprint, and supply chain base.
“I wish to also record the State’s appreciation to the Federal Government, especially the Ministry of Finance, Ministry of International Trade and Industries, and MIDA for the professionalism and tremendous working relationship in ensuring efficient investment facilitation,” Chow added.
Chow is cautiously optimistic on the near-term outlook with the continued challenging global environment, but maintained that Penang will continue to position itself as a preferred destination for investment. “Through state agencies like InvestPenang and Penang Development Corporation, the State government will continue to focus on bringing in high quality, high technology investment – with high value jobs that suit the State’s industry profile” Chow said.
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).