GEORGE TOWN (Sept 3): Penang’s approved manufacturing investments have reached RM17.3 billion in the first half of 2026 (1H 2026), and it is on track to surpass last year’s total of RM22.4 billion. 

InvestPenang chief executive officer Datuk Seri Loo Lee Lian expressed optimism about the investment performance, driven by strong growth in the global artificial intelligence (AI) sector, project expansions, and continuous investment momentum.

“We have more projects to be announced this year, and once they are good, we hope to achieve more than last year,” she told a press conference on Penang’s 1H 2026 investment performance. 

Last week, the Malaysian Investment Development Authority (MIDA) announced that Penang emerged as the top contributor of approved manufacturing investments in 1H2026.

The state secured RM17.3 billion in approved manufacturing investments, a 38% year-on-year increase from the same period last year. 

In January to June 2026, Penang’s approved manufacturing foreign direct investment (FDI) amounted to RM12.8 billion, representing 74% of the state’s total approved manufacturing investments. 

MIDA said Penang is Malaysia’s top contributor to manufacturing FDI, accounting for 39% of the nation’s total manufacturing FDI during the period, with Hong Kong, Singapore, China, and the United States among the top investors. 

On the domestic front, Penang recorded RM4.5 billion in approved manufacturing domestic direct investment (DDI), showing a significant 125% year-on-year increase that reflects continued growth and investment by local companies.

Chief Minister Chow Kon Yeow, who attended Thursday’s press conference, said Penang’s strong investment performance was recorded despite ongoing geopolitical tensions and uncertainties in the global economy, reflecting the strength and resilience of the state’s established industrial ecosystem.

The chief minister said the AI wave continues to position the region as a primary recipient of strategic technology investments, further boosting the state’s established supply chains.

“These figures include the expansion of existing plants, where we continue to receive enquiries and requests for additional land. It is not only new FDI or DDI, but the expansion of existing operations as well

“Expansion projects constituted RM11.9 billion, or 69 per cent of total approved investments, while new projects accounted for the remaining RM5.4 billion,” he added.

Uploaded by Lam Seng Fatt