Business

CM rouses industry leaders as Penang accounts for over 5% of global semiconductor sales

Chow Kon Yeow highlights state’s key role in electrical and electronics supply chain

Updated 2 years ago · Published on 08 Nov 2023 10:24AM

CM rouses industry leaders as Penang accounts for over 5% of global semiconductor sales
Penang Chief Minister Chow Kon Yeow (centre) with attendees of the International Semiconductor Executive Summit. – Buletin Mutiara pic, November 8, 2023

by Ian McIntyre

GEORGE TOWN – Penang continues to bank on its electrical and electronics (E&E) sector, which now accounts for more than 5% of the world’s semiconductor sales, to help drive the state’s economy.

Chief Minister Chow Kon Yeow said the state is a key part of the global supply chain of E&E. This also means that the state needs to continuously move up the value chain because semiconductor technologies and markets are constantly evolving.

The strength of the sector has also propelled economic growth, job creation, and technological breakthroughs, he said.

“Beyond that, our robust ecosystem also provides a competitive platform for the homegrown companies to scale and thrive.

“Through Invest Penang, the state pledges to uphold our strengths while fostering the growth of emerging subsectors, including penetrating the upstream activities, thereby extending Penang’s depth and breadth within the semiconductor sphere.”

He said this at the International Semiconductor Executive Summit at the Rasa Sayang Resort and Spa in Batu Ferringhi here.

Offering participants a glimpse into Penang’s growing stature in the global supply chain, Chow said that approved manufacturing investments reached RM4.3 billion, with the E&E accounting for 28% in the first half of 2023.

From 2019 to 2022, Penang witnessed a significant influx of foreign direct investments (FDIs), amounting to RM110 billion. Of this, RM92 billion came from the E&E sector.

Furthermore, the Statistics Department has indicated that Penang remains the country’s main exporter at 34.6% for the third quarter of this year.

Recognising the importance of talent development to meet the industry’s demand, Chow said Penang has carried out various programmes and initiatives to equip its workforce with the necessary skills and knowledge.

He also noted that a thriving manufacturing sector should not come at the expense of the environment nor social harmony.

Therefore, the need to emphasise on management though environmental, social and governance (ESG) principles is essential for investors, said Chow.

While Penang is always receptive to foreign and domestic direct investments, Chow advocated a need for ESG principles to be enshrined by both the state and investors.

“I am hopeful this gathering of E&E industry experts will serve as a catalyst, igniting the creation of innovative technologies and effective solutions that will inspire all stakeholders to forge ahead in this new and exciting era of the semiconductor industry,” he said.

The summit, which was inaugurated a decade ago, featured industry leaders, innovators, and experts, mainly from Southeast Asia.

The International Semiconductor Executive Summits president Salah Nasri Taiwan said the organisation’s objective is to bridge the global community with Southeast Asia, especially Malaysia, via business developments, research and development, innovation, and investment.

Its previous events were held in its successful events in Taiwan, the US, Europe, and Japan. – The Vibes, November 8, 2023

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