Penang, August 27, 2025 – Building upon its reputation as a hub of industrial excellence, Penang continues to strengthen its position as a preferred investment destination for both new and existing investors. For the first half of 2025 (1H2025), Penang recorded RM12.5 billion in approved manufacturing investments, a 150% year-on-year increase compared to the same period last year.

In January to June 2025, the approved manufacturing FDI inflows amounted to RM10.5 billion, representing 84% of total approved manufacturing investment in Penang. This reaffirms Penang’s position as the top contributor of manufacturing FDI in Malaysia, accounting for 20% of the nation’s total during the period. The United States, the People’s Republic of China, and the Cayman Islands emerged as the top three sources of FDI, collectively contributing 60% of the State’s total approved manufacturing FDI.

On the domestic front, Penang recorded RM2.0 billion in approved manufacturing investments, representing 16% of the State’s total and marking a 51% year-on-year increase.

According to MIDA, Penang ranked as the second-highest contributor of approved manufacturing investments nationwide, accounting for 18% of Malaysia’s total. The investment inflows in Penang span across 86 projects and are expected to provide 11,116 new job opportunities.

Investment activities were largely concentrated in Penang’s promoted sectors, namely Electrical & Electronics (E&E), Machinery & Equipment (M&E), and Chemicals & Chemical Products, which together contributed 92% of total approved inflows in 1H2025. Notably, half of these investments comprise new projects while the other half are expansion projects — underscoring investors’ confidence in Penang as a destination to both establish and scale operations.

Despite external headwinds, including global tariff uncertainties and evolving trade policies, Penang has remained resilient in attracting global investments. Backed by over five decades of industrial excellence, a robust supply chain, and a sustainable pipeline of skilled talent, Penang continues to reinforce its position as a vital player in the global value chain and a thriving hub for investors to grow.

The Chief Minister of Penang, Right Honorable Mr. Chow Kon Yeow said, “Penang is pleased to record a strong investment performance in the first half of 2025. Despite the current uncertain global environment, the State has once again punched above its weight, attracting high-quality investments that reinforce our position as a key player in the global value chain. This achievement reflects the continued confidence of investors in Penang’s capabilities and resilience.”

“The State Government extends its deepest appreciation to all investors for their trust in Penang. We would also like to thank MIDA and InvestPenang for their continued collaboration in promoting high-quality and strategic investments that strengthen Penang’s role as a vital node in the global manufacturing value chain,” Chow added.

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About InvestPenang       
InvestPenang is the Penang State Government’s principal agency for the promotion of investment. Its objectives are to develop and sustain Penang’s economy by enhancing and continuously supporting business activities in the State through foreign and local investments, including spawning viable new growth centers. To realise its objectives, InvestPenang also runs initiatives like the SMART Penang Center (providing assistance to SMEs), Penang CAT Center (for talent attraction and retention), and Global Business Services (GBS) Focus Group (promoting and developing digital economy) and Penang Silicon Design @5km+ (establishing a unique and interconnected ecosystem for IC design and technology enterprises). For more information, please visit https://investpenang.gov.my/ and follow InvestPenang’s social media channels: Facebook; LinkedIn; WhatsApp Channel and TikTok.

For media enquiries, please contact:

InvestPenang
Elaine Cheah / Arief Ferdaus
Communications & Business Intelligence
elaine@investpenang.gov.my / arief@investpenang.gov.my
T: +604-646 8833