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Penang’s competitive edge lies in its skilled workforce, robust supply chain, top-notch infrastructure and government support, making it a preferred destination for investments.

Ecosystem Icon

Ecosystem

More than 300 MNCs and 3000 SMEs
  • A vibrant roster of companies in various clusters with a solid network of SMEs to support the MNCs
Strong and growing clusters of sectors as well as supply chain ecosystem
  • Semiconductor, E&E and medical devices fronting the growth of the industrial economy with rapidly developing emerging sectors
Established Global Business Services (GBS) environment with more than 60 companies
  • Captive and non-captive services hub supporting regional and worldwide operations
Supportive start-up environment with state-backed development fund
  • Seed funding from the Penang State Government to accelerate development of start-ups in their product & service materialization & deliveries

Competitiveness

50 years of industrial experience and business intelligence
  • Birth of industrial presence since 1970s across the different era of industrial revolutions
  • Accelerated development led by the 8 Samurai of Penang – Intel, Bosch, Osram, HP, AMD, Clarion, Renesas and Fairchild
Top 5 recipients of manufacturing FDI for the past decade
  • For the past 10 years, Penang garnered RM47 billion in FDI which represents 15% of Malaysia’s total FDI
  • The United States of America, Europe and Japan are the top 3 contributors to Penang’s FDI for the past 10 years
Highly competitive cost of doing business
  • Among the cheapest utility rates in Asia, covering electricity and water
  • For more information on our competitive cost, please refer to our Cost of Doing Business
Strong IP protection & active IP creation
  • Protected by various policies and regulations; healthy environment
  • Penang & Malaysia are part of the following treaties:
    • World Intellectual Property Organization 1967
    • Paris Convention for the Protection of Industrial Property 1883
    • Berne Convention for the Protection of Literary and Artistic Works 1886
    • Trade-related Aspects of Intellectual Property Rights Agreement
    • Patent Cooperation Treaty 1970
Multifaceted & Sustainable Talents Icon

Multifaceted &
Sustainable Talents

Multilingual people
  • English, Chinese, Japanese, Korean-efficient talent and population
  • Ranked 22 out of 88 countries in terms of English proficiency by EF English Proficiency Index 2018
High literacy rate
  • 98.3% of literacy rate
High migration effectiveness ratio
  • +58.4% (inbound exceeds outbound migration)
Varied institutions of learning
  • 40 learning institutions across various levels of education and focus areas
  • 4 universities, more than 20 university colleges and 5 industrial training institutes among others
Active engagement in STEMA education and talent attraction
  • Penang STEM 4.0 Initiative covers Penang Skills Development Centre (PSDC), Penang Science Cluster (PSC), Penang Math Platform (PMP), Tech Dome Penang, @CAT Penang and Penang Digital Library
  • Penang Future Foundation – Penang State Government’s initiative to award scholarships to deserving students in the field of STEMA with the requirement that upon graduation, they shall become part of Penang’s diverse talent pool
Accessibility & Infrastructure Icon

Accessibility &
Infrastructure

Road & Train Network
  • Access to the arterial road network of Peninsular Malaysia via the North-South highway
  • Penang Island is connected to the Peninsular Malaysia through the 2 bridges:
    • Penang Bridge (5 minutes’ drive) connects to North and Central Seberang Perai
    • Sultan Abdul Halim Muadzam Shah Bridge (20 minutes’ drive) which connects to South Seberang Perai
  • Double track railway at Butterworth connects north to Southern Thailand and to the south down to Gemas (Negeri Sembilan-Johor border)
Flight Access
  • 3rd largest airport in Malaysia with upcoming expansion to cater 12 million passengers per annum
  • 283 international direct flights weekly to 19 cities in 7 countries
  • 2nd largest cargo hub in Malaysia with more than 150,000 tons of annual cargo handling capacity
Seaport Network & Cruise Tourism
  • 5th largest seaport in Malaysia with 22 berths
  • Annual container capacity of 2 million TEUs with movement of 1.5 million TEUs in 2018
  • Busiest harbor in Malaysia for cruise shipping
Internet Connectivity
  • 97.7% of 4G LTE coverage in Penang, with 5G expected in 2021
  • 26th fastest internet in the world, according to Speedtest Global Index, with 85.7% of internet penetration
  • First city in Asia to experience Terragraph, a wireless technology developed by Facebook to enable gigabit internet speeds in urban area without the complexities of laying fibre infrastructure
  • Adoption of Penang Connectivity Master Plan to achieve the status of the first Gigabit City in Malaysia, in collaboration with seven telecommunication companies and in line with the National Fiberisation and Connectivity Plan (NFCP) of Malaysia
Highly Developed Technology Parks
  • The synergy and expertise of InvestPenang driving the development of the State’s industrial parks spearheaded by Penang Development Corporation, the State’s development & investment arm
  • The glorifying success of Bayan Lepas Industrial Park, the country’s first free-trade zone, paved way to subsequent development of more industrial areas in the state – Batu Kawan Industrial Park, Penang Science Park, Bukit Minyak and Bukit Tengah Industrial Park, Seberang Jaya Industrial Park, Prai Industrial Park and Mak Mandin Industrial Park
  • Batu Kawan Industrial Park, the state-of-the-art development in Southern Seberang Perai and Penang’s third satellite city, is home to major technology corporations such as Broadcom, Western Digital, HP, Boston Scientifics, Honda and Hotayi as well as homegrown establishment such as ViTrox, Inari and UWC
  • BBC touts Penang as Asia’s next Silicon Valley
Robust Economy Icon

Robust Economy

GDP at RM 96.9billion (2018)
  • Manufacturing sector occupying 44.8% of the economy in 2017
  • Services sector covering 49.3% of the State’s economy in 2017
6.7% of national GDP (2018)
  • 5th largest contributor in Malaysia, and top in Northern Region
5.1% real GDP growth (2018)
  • Highest GDP growth in the Northern Region of Malaysia
Strong export performance with BOT of RM96 billion in 2018
  • Export volume for 2018 valued at RM289 billion, backed by strong export-oriented manufacturing industries
Liveable City Icon

Liveable City

Diversified culture, food variety & vibrant lifestyle
  • The most liveable city in Malaysia according to ECA International
  • Awarded the UNESCO World Heritage Site status in 2008
  • 1st among 8 of world’s culinary hotspots according to Lonely Planet
  • 2nd global tourist destination according to CNN
  • All year-round festivals and celebrations, with close to 100 listings in 2019
One of the safest cities in Malaysia
  • CCTV with facial recognition technology by IBM, the first of its kind in Malaysia
The leading state in green initiatives
  • First state in Malaysia to implement “No Free Plastic Bag” campaign in 2011 which subsequently inspired nationwide effort
  • The adoption of Penang Green Agenda through to 2030, cementing the state as a pioneer in green initiatives
Green Zone
  • Safe from major natural disasters due to its strategic location in Straits of Malacca

 

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