GEORGE TOWN – Penang achieved its highest ever annual amount in approved manufacturing investments in 2021, securing a total of RM76.2 billion, which marks a 440% surge from the year before.
The record was brought about mainly by existing investors’ reinvestments in the state, which is known as the Silicon Valley of the East due to its growing importance in the global supply chain for electrical and electronics (E&E) components.
According to InvestPenang, the state also regained the top spot for foreign direct investments (FDIs) from Kedah, which topped all states in 2020.
As the digital age demands components for power devices for computers, smartphones, instruments related to the Internet of Things and more, Penang’s role in producing and distributing E&E materials has grown.
In a statement, InvestPenang cited data from the Malaysian Investment Development Authority (Mida), Penang’s investment inflows in 2021 involved 111 projects.
Overall, Penang’s RM76.2 billion approved manufacturing investments in 2021 accounted for 39% of the country’s total, making it emerge as the top state in this regard.
The FDIs contributed to 98% of Penang’s approved manufacturing investments or RM74.4 billion (year-on-year: +606%), making the state the highest manufacturing FDI recipient in Malaysia, capturing 41% of the country’s total FDIs during the 2021 period.
Notable FDIs in Penang last year included projects from Intel and Ibiden, while those from domestic direct investments included Greatech Integration, among others.
Meanwhile, Chief Minister Chow Kon Yeow said that the state’s 2021 record significantly outpaced its past performances, and even exceeded the cumulative investments garnered from 2012 to 2020, which had totalled RM73.1 billion.
He added that Covid-19 did not put Penang’s industry on the backburner.
“Instead, we continue to excel in our key promoted sectors, namely E&E, machinery and equipment, medical technology, and other advanced areas.
“I am confident of Penang’s robust industry ecosystem and strong talent pool, which will enable the companies to achieve supply chain resiliency and operational advantage,” he said.
This is especially critical to cushion the impact brought by the global supply chain disruptions and reconfigurations, he added.
In addition, these investments are expected to generate tremendous supply chain localisation opportunities, which bodes well for the homegrown companies.
“Penang expresses our deepest appreciation to all the investors who have instilled confidence in the state. I wish to also convey the state’s appreciation to Mida and InvestPenang for their collaboration in securing and facilitating these investments,” Chow said.
This year, Penang celebrates the 50th anniversary of its high-tech industrialisation. – The Vibes, March 9, 2022
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