Business

Penang seeks infrastructure upgrade amid investment boom

State secures an impressive RM34.6 billion in manufacturing sector.

Updated 2 years ago · Published on 11 Dec 2023 7:16PM

Penang seeks infrastructure upgrade amid investment boom
Penang CM Chow Kon Yeow (third from right) and Invest Penang CEO Datuk Loo Lee Lian (second from right), as well as other dignitaries give the thumb’s up to state investment figures today. – The Vibes pic by Ian McIntyre, December 11, 2023

by Ian McIntyre

PENANG has recorded impressive RM34.6 billion in manufacturing investments, up 421% against last year.

However, Chief Minister Chow Kon Yeow warned that the state may be a victim of its own success.

Chow made an impassioned plea to the federal government to release the necessary funds to upgrade its nearing full capacity infrastructure or the state risks losing out to other competitors in terms of new investors.

He cited the need to upgrade roads, the international airport and ensure that utilities such as electricity and water can meet the needs of the manufacturers here.

Releasing the results with tributes to the Malaysian Investment Development Authority and Invest Penang for their strategic roles in wooing investors, he told a press conference that the state urgently needs a huge boost to improve infrastructure.

Chow cited the constant daily bottlenecks on its roads and the lack of measures to disperse traffic effectively, which have become a concern among investors.

He acknowledged that the traffic congestion will lead to unproductivity.

Penang has pitched for a light rail transit system, up to five new expressways, a robust public transport system in buses and a proposed water taxi network to help it alleviate the inflow of traffic.

This follows an inflow of investors, its workers and tourists in the state.

Chow hopes the federal authorities will hasten the delivery of projects, whether under the 12th Malaysia Plan or the recent fiscal budget.

For now, only the Air Itam-Tun Dr Lim Chong Eu Expressway bypass is under construction, the rest remaining at planning and conceptualisation stages.

Penang has also mooted a cross-channel undersea tunnel and it has begun reclamation for the Silicon Island in view of a need for more landbanks to meet the demand of investors.

“Penang has firmly solidified its position as the leading contributor to the country’s manufacturing’s foreign direct investments (FDI) by capturing an impressive 42% of the nation’s FDI during the third quarter of this year.”

Prominent contributions come from The Netherlands, United States and Singapore.

The investment will consist of 107 projects and it generates 11,121 new jobs.

Invest Penang chief executive officer Datuk Loo Lee Lian said investors regard Penang as a regional destination for them.

“It is either they come to Penang or they go elsewhere such as Vietnam or Thailand. We need to stay competitive.”

Loo said to alleviate any production losses from utilities such as Tenaga Nasional Bhd and traffic congestion, there is a need to upgrade the infrastructure in the state.

She added that Penang also needs to double down on its human capital by increasing the talent pool to meet the growing demand of investors. – The Vibes, December 11, 2023

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