PENANG recorded an impressive RM6.743 billion investments for the manufacturing sector in the first quarter of this year, despite uncertainties due to global conflicts and sluggish trade due to tariffs.
Chief Minister Chow Kon Yeow stressed that he is feeling optimistic that the state can weather the global uncertainties as the investments of RM6.743 billion was even higher than last year's first quarter of RM1.818 billion.
The first quarter figure stemmed from 36 approved manufacturing projects, and it is expected to generate 4,577 new jobs in the skilled and semi-skilled workforce.
The state is however placed second among 15 other states and federal territories, with Sabah recording the highest investment in the first quarter of 2025 with RM7.305 billion.
Chow nonetheless drew caution, saying that in the medium to long-term outlook, the investment climate might be shrouded with uncertainties based on the growing conflicts and the US tariffs on import goods.
"For now, we take the optimism that quarter by quarter, we have done fairly well."
Chow said that it remains to be seen how the global trade would shape in the third and fourth quarters with the present uncertainties from conflicts and war.
To prepare for future challenges, Chow said that the state is willing to explore opportunities in the global business services of outsourcing.
He said that Penang is great destination for global business services to tap.
Chow also revealed that within a 24-month span, majority of investors can begin their production line if they chose to invest in Penang.
Penang is also embracing the internet of things and automation besides Artificial Intelligence (AI) to boost production lines instead of relying on foreigners.
On another matter, Chow also says that the federal government should “seriously consider” the request for a share of revenue, given its key role in the country’s economy.
He said his earlier proposal to have 20% of revenue collected from Penang returned to the state was not addressed by Putrajaya.
“I think it is an appropriate time for the federal government to consider (this request) seriously and not just push it aside. If not 20%, we can start with 10%."
Chow said while federal funding for infrastructure was welcome, the state needed resources for social and welfare programmes.
He had told the state assembly on May 19 that Penang’s finances were under pressure, citing a projected deficit of over RM100 million.
He said despite perceptions of Penang as a wealthy state, majority of the tax revenue from investors flowed to federal coffers instead of to the state. - June 23, 2025.
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