PENANG’S electronics and electrical assembly plants have scaled up the manufacturing value chain with the ability now to produce equipment for the growth of Artificial Intelligence (AI) - the next tech big jump.
Many times, manufacturers are queried about their use of AI, but in essence, many manufacturers in Penang are now manufacturing parts and equipment for the AI industry, said Invest Penang chief executive officer Datuk Seri Loo Lee Lian.
Loo said this when accompanying Chief Minister Chow Kon Yeow to visit the MI Equipment (M) Sdn Bhd factory, an assembly of tech equipment, which is now public listed.
MI disclosed that about 30% of its revenue is derived from producing equipment for AI use, while all of its innovative, driven machines have AI applications in them.
MI also stressed that it is spending millions on human capital, stressing that even with AI use, the company needs human intelligence to drive its production base.
Chow, meanwhile, said that the state will continue strengthening its semiconductor ecosystem by supporting homegrown technology companies while ensuring local small and medium enterprises (SMEs) grow alongside.
“It is encouraging to see a local company achieving such remarkable growth while remaining firmly rooted in Penang. Equally commendable is your commitment to local talent development, with 99 per cent of your workforce comprising Malaysians,” he said.
Despite global uncertainties, Chow said Penang remains committed to attracting strategic investments, strengthening local companies’ participation in global supply chains and developing an AI-ready industrial ecosystem.
Earlier, MI Group chief executive officer Oh Kuang Eng said the company’s growth strategy centres on investing in local talent and advanced technologies.
“Our growth strategy is to invest heavily in people, especially local talent, because that is the key to building our company. We are also investing millions in new technologies and manufacturing processes to expand our operations here in Penang,” he said. – July 29, 2026
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