PENANG wants to work with China-based companies in the field of renewable energy, advanced manufacturing and Artificial Intelligence (AI), said Chief Minister Chow Kon Yeow.
Speaking at the 76th anniversary of the founding of the People's Republic of China celebrations at the Marriot Hotel in Gurney Drive, Chow said that there is room for improvement in collaboration between both sides.
The world is entering a new era defined by green technology, advanced manufacturing, AI, and resilient supply chains.
Chow said that Penang wants to be part of the process.
“Penang aims to play a proactive role and not merely as a recipient of investment, but as a committed partner in co-creating solutions for the global marketplace.
“From low-carbon factories to semiconductor design and digital tourism, we see the future as a shared journey of innovation and sustainability with China,” Chow said.
Among those present were acting China Consul - General Ding Qiao, Human Resources Minister Steven Sim Chee Keong and state executive councillors Jason H'ng Mooi Lye and Fahmi Zainol.
In the first half of this year, Penang recorded RM12.54 billion in approved manufacturing investments, of which RM1.85 billion, or nearly 15 percent, came from China across 12 projects, creating an estimated 1,532 new jobs.
Around 65 Chinese companies operate in Penang, while China remains Penang's second-largest trading partner, accounting for 15.6% of total exports, or RM77 billion last year, said Chow.
Chow said that Penang is keen to tap more high-value partnerships and investments from China to align with the New Industrial Master Plan (NIMP 2030).
Penang proposes several practical pathways for collaboration.
“Firstly, the ASEAN–China Green Innovation Lab in Malaysia, focusing on clean energy, artificial intelligence (AI) and smart technologies.
“Secondly, the co-funded applied research and development (R&D) in integrated circuit (IC) design and wafer fabrication, leveraging off the National Semiconductor Strategy (NSS) as well as Penang Silicon Design @5km+ and the Penang Chip Design Academy.
He also said that Penang hopes to explore pilot Special Economic Zones (SEZs) inspired by the Penang International Financial Centre concept, dedicated hubs for finance and innovation.
“Just as Shenzhen’s rise was driven by well-planned SEZs that allowed new ideas to be tested and scaled, Penang hopes to learn from this experience.
“We welcome Shenzhen and Chinese partners to share expertise, collaborate on training and joint projects, and help pilot new approaches."
“Such a partnership can accelerate technology transfer, attract green finance, strengthen local skills, and deliver broader benefits to Penang and the northern region,” said Chow.
Ding Qiao reaffirmed China’s commitment to stronger ties with northern Malaysia.
“The Consulate General of China is ready to join hands with governments and communities across the four northern states here to practice Asian values of peace, cooperation, openness, and inclusiveness. Together, we can deepen exchanges, upgrade cooperation, and write a new chapter in building a high-level strategic China-Malaysia community with a shared future," said Ding Qiao. - September 20, 2025.
