PENANG wants to elevate its Bayan Lepas Free Industrial Zone from just a manufacturing output niche to one with strong ties to research and development (R&D).
This is to enhance the state’s role as a leading player in the global supply chain of electrical and electronics goods, said Chief Minister Chow Kon Yeow.
Chow said his government is collaborating with industries to establish a strong R&D arm called the Silicon Research and Incubation Space.
Speaking during a live “Naratif Khas” (Special Narrative) programme over Radio Television Malaysia, Chow said that there was a strong push to not just produce digital components but better human capital to cope with the constant upgrades in the world of technology.
Hence, through the recently established chip academy, Penang plans to stay abreast with the technological advances the industry brings.
Chow said the academy aims to cultivate talent for the IC Design Park by improving the skill sets of participants.
An estimated RM15 million will be allocated to operate this academy, including infrastructure construction and training costs over the next five years.
“Penang, being a semiconductor hub, wants to leverage the efficient ecosystem and collaborate with industries to further develop the semiconductor front-end sector. But we’ve limited industrial land, and we also need to consider electricity and water supply for industries,” Chow said during the televised show.
“Penang is undoubtedly the forerunner. There may be about 20 IC design factories in the whole of Malaysia, and 18 of them are based in Penang, whether they are MNCs or local companies listed in Bursa Malaysia,” Chow said during the televised show.
Penang started attracting semiconductor factories 53 years ago and the state is now in a strategic position to accept the spillovers from the disruption of the supply chain following the technological trade war between the US and China.
Chow stressed that efforts to attract investors will no longer materialise if the country does not have sufficient human talent.
Asked about an acute shortage of talent, namely in the engineering field, Chow said the federal government needs to help by reforming the inculcation of learning to the youngsters so they grasp the new skills emerging from a post-pandemic world.
“Now, we see the decline in the number of students taking up STEM (science, technology, engineering and mathematics) subjects. Factories need engineers and because of these constraints, we are losing out on the competitive edge to our neighbouring countries in Southeast Asia.
“I hope STEM education and talent development will be given serious attention by the federal government so that we will not be left behind. If we don’t have sufficient human talent, then our efforts to attract investors will not bear fruit,” he said.
He acknowledged that the manufacturing sector did not perform well last year compared to 2022 due to a global economic slowdown, but he is optimistic that it will pick up in the second half of this year. – July 16, 2024.
