More investments headed for Penang, says UOB

PETALING JAYA: United Overseas Bank (Malaysia) Bhd expects a 30% increase in the number of its overseas clients investing in Penang over the next 12 months, especially those from the electronics and semiconductor industries.
The bank said in a statement yesterday that more of its corporate clients are attracted to Penang’s conducive business environment and well-established status as a global manufacturing and services hub.
These companies are mainly from China, Taiwan and Singapore who are looking to tap into Penang’s cost-effective manufacturing and electronics infrastructure, and have ambitions to extend their reach in Southeast Asia.
UOB Malaysia deputy CEO and head of wholesale banking Kevin Lam said the bank’s regional corporate clients see Penang as more than just a manufacturing base.
“Despite the muted global economic outlook, Penang remains an attractive expansion destination for our regional corporate clients. They are tapping into its favourable business conditions and the rising consumption power of Southeast Asia’s growing middle class population to seek long-term growth in the region,” he said.
According to UOB Malaysia, Penang is one of Malaysia’s most successful investment hubs and attracts significant foreign investment given its strong business ecosystem including a highly-skilled labour force, stringent intellectual property protection laws and a robust manufacturing supply chain supported by more than 300 multinational corporates.
Malaysian Investment Development Authority (Mida) data shows that the state contributed nearly 20% to the country’s overall foreign direct investment (FDI) inflows in 2015, the highest among the Malaysian states, reflecting a 7% increase from the previous year’s inflows.
Last week, UOB Malaysia partnered Mida and InvestPenang to share insights on the state’s investment potential during a half-day forum held in Singapore, which is part of the UOB FDI Asean Series.
UOB Malaysia’s FDI Advisory Unit has also collaborated with Mida and other agencies such as the Iskandar Region Development Authority (IRDA), the East Coast Economic Region Development Council (ECERDC) and the Sarawak Corridor of Renewable Energy (SCORE) to position Malaysia as a key investment destination in Southeast Asia.