PENANG has proposed exploring a partnership with the private sector in Northern Sumatra (Medan) in Indonesia to jointly invest in the food industry and farming sectors for food security for both regions.
The proposal for food cultivation and packaged manufacturing was mooted by state executive councillor Goh Chook Aik.
He plans to unlock new cross-border investment opportunities between Medan and Penang, which is just an hour flight away.
Goh was leading a Penang delegation to attend a business matching session at the Grand City Hall Hotel, where initial discussions were on potential collaborations in agriculture, aquaculture, logistics and food processing.
Goh, who oversees the trade portfolio, said Penang aims to leverage North Sumatra’s vast agricultural resources while contributing expertise in technology, food processing and supply chain management.
“We are exploring raw materials from the agriculture and aquaculture sectors to support Penang’s food manufacturing industry. To export food products worldwide, certifications such as HACCP, GMP, ISO and Halal are essential, and this is where Penang has the expertise to add value,” he said.
Rather than acquiring land, Goh stressed that Penang companies should focus on introducing agricultural technologies and best practices through partnerships with Indonesian growers.
He also highlighted the importance of reducing Malaysia’s dependence on imported food.
Apart from agriculture, Goh said logistics and maritime connectivity would play a pivotal role in realising the proposed collaboration.
Upon returning to Penang, he plans to organise a briefing with agricultural experts and potential investors to explore opportunities in agricultural technology and contract farming models. - July 5, 2026.
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