GEORGE TOWN (Dec 11): Penang has reportedly proven its allure to both new and existing investors, with an investment inflow of RM34.6 billion in the manufacturing sector in the third quarter of 2023 (3Q2023), a 421% year-on-year (y-o-y) increase.
Chief Minister Chow Kon Yeow said the growth was primarily driven by foreign direct investment (FDI), which accounted for RM33.0 billion or 95% of Penang's manufacturing investment inflow during the period.
“The substantial influx of FDI underscores the resolute confidence international investors place in Penang's potential, and the lucrative opportunities it presents.
“Equally deserving of acknowledgement are our domestic investors, whose steadfast support has played a pivotal role in fostering our flourishing industrial landscape,” Chow told a press conference here on Monday.
He said domestic direct investment (DDI) contributed RM1.6 billion, constituting the remaining 5% of the manufacturing investment inflow.
Chow said Penang also recorded total approved investment of RM44.9 billion in January to September 2023 across various sectors, encompassing the manufacturing, services and primary sectors.
“Notably, the approved manufacturing FDI inflow stood at an astounding RM35.8 billion, signifying an impressive 634% y-o-y increase.
“Penang has firmly solidified its position as the leading contributor to the nation's manufacturing FDI, capturing an impressive 42% share during this period,” he said, adding that prominent contributions came from countries such as the Netherlands, the US and Singapore, accounting for 95% share of Penang's approved manufacturing investment.
He added that despite a 15% y-o-y decrease in DDI at RM3.1 billion, total approved manufacturing investment in the first three quarters of 2023 stood at an impressive RM38.9 billion, making Penang the highest contributor among all states, with 39% share of Malaysia's approved manufacturing investment in the said period.
Meanwhile, Chow said according to the Malaysian Investment Development Authority (Mida), the investment flow involved 107 projects and is expected to generate 11,121 new job opportunities in the state primarily driven by the key industries, namely electrical and electronics, machinery and equipment, and fabricated metal product industries.
“These sectors collectively accounted for a remarkable 98% of Penang's total approved manufacturing investment in the first nine months of 2023, underscoring our pivotal role in driving Malaysia's participation in the global supply chain,” Chow said, thanking Mida and InvestPenang for their efforts in creating a conducive environment for strategic investments.
Chow is confident that Penang's ecosystem and fundamentals will continue to attract investment, and are ready to support the needs of industries for next-generation technologies, innovative products and long-term growth strategies, all underpinned by the state's talent pool.