[Press Release] Penang’s Resilient Industrial Ecosystem Continued to Attract Approved Manufacturing Investment Inflow of RM38.9B With Anticipated Recovery in the Global Technology Cycle from January to September 2023

[Press Release] Penang’s Resilient Industrial Ecosystem Continued to Attract Approved Manufacturing Investment Inflow of RM38.9B With Anticipated Recovery in the Global Technology Cycle from January to September 2023

11 December, 2023

December 11, 2023 – Underpinned by over 50 years of industrial excellence, Penang continues to draw active participation from both new and existing investors. In the third quarter of 2023 (3Q2023), Penang has recorded an investment inflow of RM34.6 billion in manufacturing, up 421% year-on-year. In 3Q23, foreign direct investments (FDI) accounted for RM33.0 billion or 95% of Penang’s manufacturing investment inflow, while the remaining RM1.6 billion or 5% were domestic direct investments (DDI).

In January to September 2023, with the approved manufacturing FDI inflows amounted to RM35.8 billion (year-on-year: 634%), Penang has exemplified its leading role as the top manufacturing FDI contributor for the nation, capturing a 42% share of the nation’s manufacturing FDI for the period. Countries with top manufacturing FDI in Penang were the Netherlands, the United States and Singapore, which contributed to a 95% share of Penang’s approved manufacturing investments.

With DDI recorded at RM3.1 billion (year-on-year: -15%), Penang’s total approved manufacturing investment for the first three quarters of 2023 amounted to RM38.9 billion, making Penang the highest contributor among all states, with 39% share in Malaysia’s approved manufacturing investments in the said period. According to Malaysian Investment Development Authority (MIDA), the investment inflows involved 107 projects and are expected to generate 11,121 new job opportunities in the State.

Total approved manufacturing investments were primarily driven by the State’s key promoted industries, namely Electrical & Electronics, Machinery & Equipment and Fabricated Metal Products industries. Cumulatively, investments into these sectors accounted for 98% of Penang’s total approved manufacturing investments in the first nine months of 2023. This demonstrated Penang’s instrumental role in driving Malaysia’s participation in the global supply chain in these areas.

The Chief Minister of Penang, Right Honorable Mr. Chow Kon Yeow said: “The State government is delighted to achieve such a commendable investment performance as foreign investors continues to expand their operations in Penang with the anticipation of recovery in the global technology cycle in 2024. Penang’s versatile ecosystem and strong fundamentals have the capacity and capability to support the needs of the industries’ next-generation technologies, products, and long-term growth strategies, supported by a highly-qualified talent pool.”

“The Penang State government would like to express our deepest appreciation to the investors for their confidence in Penang. We would also like to thank MIDA for the conducive and fruitful collaboration with InvestPenang in attracting strategic investments into the State.” Chow added.

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About InvestPenang
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 supporting business activities in the State through foreign and local investments, including spawning viable new growth centers. To realize its objectives, InvestPenang also runs initiatives like the SMART Penang Center (providing assistance to SMEs) and Penang CAT Center (for talent attraction and retention). For more information, please visit https://investpenang.gov.my/ and follow InvestPenang’s social media channels: Facebook; LinkedIn.

Media Contacts
InvestPenang
Elaine Cheah / Arief Ferdaus
elaine@investpenang.gov.my/ arief@investpenang.gov.my