GEORGE TOWN – In spite of the Covid-19 pandemic, various economic sectors in Penang have been spared the worst, with some going on to record robust profits last year.
Penang Institute senior fellow and Socioeconomics and Statistics programme head Ong Wooi Leng said some exporters performed well due to steady global demand.
Among them is Penang International Airport, which was Malaysia’s top trade handler last year.
The airport handled the highest export value in Malaysia at 25.8% of the country’s total – a growth rate of 9.9% – compared with Kuala Lumpur International Airport (KLIA), which saw a decrease of -15.6%.
“While all exports through seaports saw a reduction from January to November 2020, exports through airports experienced robust growth at 4.3% on average, supported by the rapid recovery in exports through the Bayan Lepas airport.
“The top exporting products were machinery and transport equipment from medium- and high-tech industries, which include the aerospace, automation, electrical and electronics, and medical device sectors, among others,” said Ong.
A Penang Institute report found that the manufacturing sector rebounded quicker than expected last year, although it was the sector affected the earliest by Covid-19 restrictions due to its dependence on basic materials from China.
Ong said sales and business revenue were also greatly impacted in the second quarter of 2020.
However, a steady rebound took place due to the positive effects of the United States-China trade conflict, with book orders rising to near maximum capacity in the second half of 2020, the report said.
As of the Q3 2020, said Ong, Penang saw 63.6% new investments, driven primarily by foreign investments.
“Among the countries that invested were Singapore, with an investment of 36%, followed by Switzerland (29%) and the US (23%).
“Batu Kawan Industrial Park also received the highest investment at 44%, while the Bayan Lepas Free Industrial Zone Phase 4 accounted for 19%.”
Ong said Penang’s technology companies also invested in expansion, product development and technology upgrades, as seen in the record capital expenditure growth among local and global technology firms.
“Being the country’s second-largest manufacturing state, Penang’s manufacturing sector is estimated to continue contributing substantial growth to the national manufacturing output for 2020 and in the years to come,” the institute said. – The Vibes, February 4, 2021
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