PENANG continues to enjoy huge economic ties with China as the Year of the Horse is poised to gallop in more tourists from the world's second-largest economy.
China is now a major player in Penang's services and manufacturing sectors, with investments from that country reaching almost RM16 billion in the last decade.
Chief Minister Chow Kon Yeow revealed that Penang recorded RM4.2 billion in approved manufacturing investments from China last year, and more than 80 Chinese companies are operating here, including dominant investors such as Guangdong Tianyu Semiconductor and TF - AMD Microelectronics.
Besides electrical and electronics, China's range of interests includes solar power panels, chemicals and renewable technology.
On top of it, China is considered a leading contributor to inbound tourism and a growing number of them are enrolled in the institutions of higher learning, both in the public and private learning centres, including Universiti Sains Malaysia (USM).
Penang also revealed that the number of direct flights from Chinese cities has tripled in the past year, while many of them have also leased or purchased properties here.
The state remains a major contributor to bilateral trade, accounting for RM143 billion of Malaysia’s RM255 billion exports to China from January to November 2025.
“Most of these exports are in electrical and electronic products, highlighting Penang’s role as a key manufacturing and technology hub within global supply chains,” he said at a 2026 Chinese New Year reception hosted by the consulate-general of China.
Among those present were two former chief ministers, Tan Sri Dr Koh Tsu Kon and Lim Guan Eng, as well as community and commercial interest leaders.
Looking ahead, Chow said Penang, together with the northern region, would continue to welcome strategic investments from China, particularly those that are high - value, future - oriented and those which cement supply chain resilience.
He noted that the improving connectivity between Penang and China would further support investments, citing the recent launch of the direct flight from Guangzhou to Penang and the China - Malaysia mutual visa exemption agreement, signed last year.
China’s Consul-General based in Penang, Zhou Youbin, said the Chinese diplomats will actively promote subnational cooperation between the two countries, particularly across the northern region, while enhancing mutual understanding and friendship.
He noted that economic and trade cooperation between both sides has continued to strengthen, with a growing number of Chinese enterprises investing and operating in northern Malaysia, which is laudable.
“The enterprises of new energy vehicles and lithium batteries and the related upstream and downstream enterprises have formed a cluster, bringing a positive effect on building a complete local industrial ecosystem,” he added.
Zhou said connectivity between Penang and China has improved significantly, with nearly 70 weekly flights linking Penang to multiple Chinese cities, facilitating greater movement of tourists, business travellers and students.
He said more than 200,000 citizens visited Penang via international flights last year, alongside an increase in cultural and educational exchanges. - February 6, 2026.
