ALOR SETAR – Kedah has regained the top spot in attracting foreign direct investments (FDI) from Penang in Q1 2022 after the northern state secured RM8.3 million compared to their neighbours who received RM5.456 million.
Kedah had received the highest volume of FDIs in the whole of 2020, while Penang achieved the feat last year.
Both states emerged as number one and two respectively for the period January to March this year.
The inflow of capital remains encouraging despite the global economic concerns over hyperinflation, disruption to the supply chain, a European war, and the Covid-19 pandemic.
The data was shared with The Vibes by InvestPenang, which conveyed that some of the FDIs in Kedah were the consequence of the growth of Penang’s electrical and electronics (E&E) segment of the manufacturing sector.
“It is simply a spillover effect and we are happy to note the saying of ‘prosper thy neighbour’,” an InvestPenang official said.
Penang has emerged as one of the key hubs in the global E&E marketplace, especially as the factories here are assigned to aid the supply of smart chips to meet the demand for digitalisation in automobiles, smartphones and so on.
Sabah is in third position for Q1, followed by Selangor, Melaka, Johor, Kelantan, Perak, Negri Sembilan, Kuala Lumpur, Pahang, Sarawak, Terengganu, Labuan and Perlis.
Last week, Malaysian Investment Development Authority (Mida) CEO Datuk Arham Abdul Rahman said that the overall investment figures for the country are good. He added each state complements the other in the eyes of the authorities.
His view was echoed by Penang Chief Minister Chow Kon Yeow, who said that each state has its respective strength.
Penang will welcome investments for its neighbours for the collective benefit of the country, he had said.
Mida released its latest figures recently that Malaysia has attracted a total of RM42.8 billion approved investments in the manufacturing, services, and primary sectors, involving 910 projects from January to March 2022.
FDIs remained the major contributor, at 65% or RM27.8 billion, while investments from domestic sources contributed 35%, amounting to RM15 billion.
The approved investments for this period are expected to create 24,906 new jobs in the country.
During the period, the manufacturing sector continued to assume an important role in driving the country’s economic recovery, accounting for more than half (70.1%) oftotal approved investments of RM30 billion, followed by the services sector at RM12.7 billion (29.7%) and the primary sector at (0.2%).
Of the total investments approved, Germany dominated foreign investments for the period January to March 2022, with investments totalling RM8.9 billion, followed by Brunei RM 5.1 billion, the United States of America RM3.9 billion, Hong Kong RM3.3 billion and Japan RM3.2 billion.
For projects approved through the states, five major states, namely Kedah, Penang, Selangor, Sabah, and Johor, contributed RM31.8 billion (74.3%) of the total investments for this period.
Notable projects approved during the period are TTM Technologies Malaysia Sdn Bhd, a leading US-based global manufacturer of printed circuit boards, radio frequency (RF) components and RF microwave or microelectronic assemblies.
It is investing RM550 million in Penang.
This project will further boost Malaysia’s domestic E&E ecosystem by creating high-tech jobs for Malaysians and opportunities for local vendors.
Another is Petroventure Energy Sdn Bhd, a foreign majority-owned company from Brunei that will be manufacturing petroleum products in Sabah, including gasoline, kerosene, benzene, liquefied petroleum gas, acrylic, sulphur, slurry, fuel oil and diesel.
This project will help Sabah’s economy to spur as the products from the refinery will create a new supply chain that will benefit many businesses.
Also, the project is anticipated to create 500 potential job opportunities in the state – The Vibes, June 22, 2022.
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